Information regarding the $72.11 million non-agency mortgage-backed security from Lone Star Funds’ Colt Funding has been limited, although a document obtained by Inside Nonconforming Markets provides some more details on the deal. COLT 2015-A was the first non-agency MBS to be backed predominantly by non-qualified mortgages. Credit Suisse was the lead manager, and U.S. Bank is the trustee. The MBS was backed by mortgages originated by Caliber Home Loans ...

EverBank Financial has been able to maintain strong loan performance while building up its jumbo originations. EverBank had $1.46 billion in jumbo originations during the second quarter of 2015, up 31.6 percent from a year ago. The bank’s originations of conventional mortgages increased by 11.9 percent in that span, hitting $1.26 billion in the second quarter. In August, Moody’s Investors Service reaffirmed its rating of EverBank as a “strong” originator of jumbo mortgages ...

Unfavorable economics and new regulations appear to have slowed the issuance of jumbo mortgage-backed securities in recent months. New deals from Credit Suisse and Two Harbors Investment suggest that the market could be regaining its legs in September. Mid-way through the third quarter of 2015, only four jumbo MBS had been priced, according to the Inside Mortgage Finance MBS Database. An average of about 11 deals per quarter have been issued in the past year ...

While the vast majority of jumbo mortgages being originated continue to feature tight underwriting standards, some lenders are willing to offer unique jumbos, with downpayments as low as 5 percent or allowing for borrowers who are unemployed. Parkside Lending recently launched a jumbo that allows for combined loan-to-value ratios as high as 95 percent. The lender doesn’t require mortgage insurance on the loans. “We believe our new jumbo loan offering ...

Securitized FHA,VA and rural housing loans in Ginnie Mae mortgage-backed securities totaled $188.5 billion in the first six months of 2015, fueled by significant purchase and refinance activity, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. An estimated $113.4 billion in FHA-insured mortgages were securitized during the first half of the year. Of that total, $60.6 billion were purchase mortgages and $44.2 billion were refinance loans. FHA purchase-loan production increased 58.8 percent in the second quarter from the prior quarter while refi lending jumped 160.8 percent over the same period as FHA’s reduced annual mortgage insurance premium began to take hold. The FHA loans that went into Ginnie MBS showed an average loan-to-value ratio of 92.8 percent and an average debt-to-income ratio of 39.7 percent. Borrowers’ average FICO score was 675.9, which was indicative of ... [ 2 charts ]

The FHA has discovered glitches in FHA Connection and in the Home Equity Conversion Mortgage calculation software, which are creating problems for HECM lenders. A bad field edit in FHA Connection is preventing mortgagees from completing their on-screen financial assessment update on HECMs with negative residual income. This hinders submission of reverse-mortgage transactions to FHA for insurance. The FHA has issued temporary procedures that include instructions on submitting a request for a waiver of penalties for late payment of mortgage insurance premiums on closed loans. The agency was also alerted to a second technical problem following the release of the HECM Calculator, Version 2.2. The software incorrectly defaults, in some cases, to the 2.5 mortgage insurance premium rate when a value is entered in the Cash from Borrower and Cash from Lender fields. The FHA is also issuing ...

Purchase-mortgage lending provided most of the oomph that drove the 23.6 percent increase in total mortgage originations during the second quarter, but refinance activity still accounted for slightly over half of total production. Lenders funded $222 billion of first-lien purchase mortgages during the second quarter, a 59.7 percent increase from the first three months of 2015, according to Inside Mortgage Finance estimates. That was just shy of the $223 billion of purchase mortgages originated back in the third quarter of 2013, a figure that included some second-mortgage production associated with purchase loans. Meanwhile, refinance lending rose...[Includes three data tables]

More than a year after the Consumer Financial Protection Bureau’s standards for qualified mortgages took effect, originations of near-prime non-QMs remain limited. However, industry participants are optimistic that originations will pick up and Lone Star Funds recently jolted the sector with a non-agency mortgage-backed security. The $72 million non-agency MBS from Lone Star was backed by non-QMs originated by Caliber Home Loans, a lender owned by the private-equity firm ...

Potential issuers of non-agency mortgage-backed securities looking to loosen underwriting standards on loans to be included in MBS are getting tough feedback from rating services. Fitch Ratings said last week that non-qualified mortgages with weak income documentation would likely face a “double penalty” compared with a similar non-QM that meet the documentation standards set for QMs. Non-QMs with “alternative documentation” included in non-agency MBS would ...

Issuance of jumbo mortgage-backed securities has slowed somewhat this summer, with a lack of consensus from industry participants on whether it’s worth participating in the market. Barclays Capital, which helps fund jumbo MBS activity, said the deals offer about 50 basis points of option-adjusted spread compared with agency MBS. Analysts at Barclays said newly-issued jumbo MBS are attractive for investors less concerned about liquidity. Officials at Anworth Mortgage Asset Corp ...