The loan limit more than doubled for the Mortgage Partnership Finance program through which members of certain Federal Home Loan Banks can deliver jumbos to Redwood Trust. Officials at both the Federal Home Loan Bank of Chicago and Redwood are optimistic about the MPF Direct product, though it’s unclear how much volume the new offering will generate. Beginning in the third quarter, the loan limit for MPF Direct will increase from $729,750 to $1.5 million. Previously, the MPF Direct product targeted loans with balances between $625,500, which is the current conforming loan limit for certain high-cost areas, and $729,750, which was the high-cost loan limit during a time when the FHLBank of Chicago was working to launch MPF Direct. Outside of MPF Direct, Redwood purchases...
The dreary state of the prime jumbo mortgage securitization market will continue for the short term but there’s a silver lining around the bend, according to an analysis by rating agency DBRS. Despite last year’s downturn, the jumbo prime market has seen steady growth in the last five years. In 2010, Sequoia Mortgage ended the drought in the non-agency MBS with a $478.1 million deal backed by newly originated prime jumbo loans. There have been...
Several well-known actors, including Henry Winkler, Robert Wagner and Fred Thompson, have appeared in such ads over the past few years, vouching for the products and their safety.
After a pilot jumbo mortgage loan program between the Federal Home Loan Bank of Chicago and Redwood Trust kicked off this quarter and expanded into a full roll-out beginning June 1, it was announced this week that the loan limit will just about double. The new single-family loan limit for the Mortgage Partnership Finance Direct program will increase from the current $729,750 to $1.5 million in the third quarter. The MPF Direct loan limit was raised primarily to help members that operate in urban or other areas where home prices are higher than the national average, said John Stocchetti, an executive vice president at the FHLB Chicago and group head of the MPF program.
According to Moody’s rating scale of long-term corporate obligations, obligations rated Caa are judged to be of “poor standing” and are subject to “very high" credit risk...
Citadel Loan Servicing this week rolled out something the residential market hasn’t seen in quite some time: a nonprime second lien from a nonbank. But don’t expect a groundswell of copycat loans. Moreover, it’s doesn’t appear that Citadel’s bold move is likely to ignite the return of nonbanks to producing second liens of any type – whether it’s a closed-end second or a line of credit. Anecdotal evidence suggests...
The Supreme Court of the U.S. this week ruled unanimously in favor of Bank of America regarding two lawsuits involving negative equity, second liens and Chapter 7 bankruptcy. While the ruling favors holders of second liens, industry analysts suggest that it could have an impact on loss mitigation negotiations between lien holders and prompt borrowers to shift to Chapter 13 bankruptcy filings. The cases considered were Bank of America v. Caulkett and Bank of America v. Toledo-Cardona. In both cases, borrowers in a negative equity position on their second liens sought to void the second liens as part of a Chapter 7 bankruptcy. The Eleventh Circuit Court of Appeals had ruled in favor of borrowers in such cases. “The court’s decision not only resolved...
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