Some self-employed workers are missing out on mortgages because of harsh standards included in the Consumer Financial Protection Bureau’s ability-to-repay rule, according to analysts at the Housing Finance Policy Center. “The mortgage market is not adequately meeting the needs of self-employed households,” the analysts said. The HFPC noted that in 2016, about 8.5 percent of U.S. households were headed by a self-employed person and 3.4 percent were salaried but earned some ...

Varde Partners, which four years ago purchased fledgling nonprime lender Deephaven Mortgage, Charlotte, NC, is now contemplating selling the company, industry officials who claim to have knowledge of the matter told Inside Mortgage Finance this week.

Issuance volume and lending practices in the prime non-agency mortgage-backed security market in 2019 will be linked in several ways to the government-sponsored enterprises, according to industry analysts. Volume projections for prime non-agency MBS depend on pricing differences between non-agency execution and delivery of loans to Fannie Mae and Freddie Mac. Non-agency lenders are also expected to increasingly use tools developed by the GSEs. “We expect robust issuance from ...

Holdings of first-lien mortgages by banks and thrifts increased in the third quarter, according to an Inside Nonconforming Markets analysis of call reports. Banks and thrifts held $2.07 trillion of first liens in their portfolios at the end of September, up 1.2 percent from June and 4.3 percent from a year ago. The holdings have largely been boosted by jumbo mortgages along with loans eligible for sale to the government-sponsored enterprises ... [Includes one data chart]

With 2018 winding down, issuers of non-agency mortgage-backed securities introduced two new deals this week. Neuberger Berman is set to issue its second expanded credit MBS of the year while Verus Mortgage Capital is planning its second deal backed by nonprime loans for investment properties. Neuberger Berman’s Homeward Opportunities Fund I Trust 2018-2 will be a $320.1 million deal and Verus Securitization Trust 2018-INV2 will be a $254.8 million issuance. Sprout Mortgage ...

Brokers and correspondents looking for nonprime lenders to work with should consider the benefits provided by firms with vertical integration, according to a recent white paper by Citadel Servicing Corp. Citadel happens to be a vertically-integrated lender with wholesale and correspondent operations along with a servicing platform. The lender defined vertical integration as the combination of two or more stages of production at one company as opposed to the stages ...

The FHA has announced that protocols in place for second appraisal requirements for certain Home Equity Conversion Mortgage loans are now fully automated.

Home-equity lending remains one of the soft spots in the mortgage market, as the supply of loans outstanding continued to shrink and new lending volume remained anemic in the third quarter. [Includes three data charts.]

Negative equity – or even just the perception of it – is the most important determinant of default rates, according to a recent study by Collateral Analytics.

Retail originations declined more than third-party production in the three major mortgage-product categories during the third quarter of 2018, according to a new analysis by Inside Mortgage Trends. Based on survey data from a broad cross-section of lenders, retail originations fell 8.8 percent from the second to the third quarter. The wholesale-broker sector was down 1.9 percent, while correspondent production posted a 1.9 percent increase. The data ... [Includes two data charts]