Truman Capital alleged that Nationstar backed out of the transaction after realizing that the sale price for the NPLs was lower than fair market value.
Some $4.60 billion in jumbo mortgage-backed securities were issued in the first quarter of 2015, the highest quarterly volume seen in the aftermath of the financial crisis, according to Inside Nonconforming Markets. Jumbo MBS activity has had large swings in recent years due to shifting investor appetite and volume hasn’t been anywhere near the levels seen before 2008. However, the market recovered from an unexpected increase in interest rates ... [Includes one data chart]
A little known lender called Angel Oak Mortgage Solutions hopes to fund $540 million of product this year and generate the industry’s first nonprime non-agency MBS of the “new era” with financing provided by Nomura. According to industry officials who have viewed investor materials issued by the company – a copy of which was provided to Inside MBS & ABS – Nomura has even agreed to provide “gestation repo” warehouse credit to the privately held originator. One source who claims to have knowledge of the arrangement said...
Some MBS investors and industry analysts were taken aback when the latest prepayment rates on the government-sponsored enterprises’ risk-transfer deals were reported last week. The spike in prepayments was due to low interest rates in January, with the risk-sharing deals more susceptible to prepayments than agency MBS overall due to the collateral included in them. Prepayment rates were particularly high on Freddie Mac Structured Agency Credit Risk transactions. Analysts at Barclays Capital said M1 tranches on STACR 2014-DN3 and STACR 2014-HQ1 experienced large pay-downs in March due to “seemingly high” prepayments. STACR 2014-DN3 M1 paid down by 18.0 percent in March and STACR 2014-HQ1 M1 paid down by 8.4 percent. “While the jump in prepayment speeds could be expected after the rates rally earlier this year, the magnitude of the jump may seem...
In what could quickly become a “credit negative” for the subprime auto ABS sector, a top official from the Consumer Financial Protection Bureau indicated last week that the agency is increasingly concerned about the sector and will crack down on practices deemed too risky for consumers. CFPB Deputy Director Steven Antonakes, in a speech before the Consumer Bankers Association, identified a loosening of credit in the subprime auto loan market as one of the emerging risks the bureau is paying close attention to. “From our standpoint, it is...
Limited refinancing opportunities for borrowers already at the lowest end of the interest rate spectrum continue to drive down voluntary prepayments on re-performing loans, according to a report by Moody’s Investors Service. “We estimate that only 15 percent of all re-performing subprime loans and 12 percent of all re-performing Alt A loans could have potential refinancing options,” said Moody’s. The borrowers received...
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