The newly-originated adjustable-rate mortgages have a weighted-average coupon of 7.387 percent and an average credit score of 688, according to Bank of America Merrill Lynch.
loanDepot, LLC, made a big splash in the market this week, becoming the first nonbank lender to begin making ‘A’ paper second liens since the housing bust. The Irvine, CA-based lender fully expects it may soon have competition, but believes by being the first in, it will have a leg up on whichever players enter the fold. However, a quick call to a handful of nonbanks turned up...
Although PHH Corp. refuses to answer questions regarding a key private-label services contract to originate mortgage loans for Merrill Lynch, most analysts that follow the company believe the Wall Street giant will renew the agreement. To date, PHH will not say either way, but observers of the situation believe it’s more a technical matter than anything else. The general consensus is that Merrill has verbally agreed to renew, but hasn’t signed on the dotted line. On its recent earnings call, PHH management said...
Piggyback mortgage financing structures appear to be creeping back into the market, a trend that some observers say could destabilize the industry. Before the financial crisis, many borrowers combined a first-lien mortgage for 80 percent of home value with a second lien of 10 percent or more in order to avoid paying private mortgage insurance. While many first-lien mortgages are still originated with a simultaneous second in recent years, the combined loan-to-value ratio of the two has been capped at 80 percent or less. “From what we’ve seen from lenders who are interested in expanding their customer base, there appears...
About three years ago, some investors – private equity firms and hedge funds in particular – started purchasing NPLs as a cheaper alternative to buying foreclosed homes.
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