Lending units affiliated with Angel Oak Companies reported a record $512.0 million in originations of non-qualified mortgages for the second quarter of 2018, putting the nonbank on pace to top $1.0 billion in production this year. Angel Oak’s non-QM production increased by 52.0 percent from the previous quarter and nearly doubled its originations of a year ago. Angel Oak’s various production entities added 104 employees during the second quarter for a total of 527 staff members ...

The Department of Housing and Urban Development has issued an interpretive rule to clear up some of the confusion created by the recently approved Dodd-Frank reform act regarding the eligibility of certain VA refinance loans to serve as Ginnie Mae collateral. Although interpretive rules are exempted from public comment under the Administrative Procedures Act, HUD is seeking public input on its interpretation of the loan-seasoning provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law on May 24, 2018. Among other things, the statute prohibits Ginnie from guaranteeing payment on a security backed by a mortgage that does not meet its seasoning requirements. The protective measure was designed to deter lenders from encouraging veterans to refinance their loans often and repeatedly. Loan churning led to faster prepayment speeds on the ...

Issuance of non-agency mortgage-backed securities reached a third straight post-crisis quarterly record during the recently completed April-June cycle, according to a new ranking and analysis by Inside Nonconforming Markets. A total of $10.03 billion of non-agency MBS backed by new jumbo and expanded-credt originations was issued in the second quarter. The previous quarterly record was $6.28 billion in the first quarter of 2018. And in ... [Includes one data chart]

An affiliate of Verus Mortgage Capital is set to issue what will be the largest post-crisis nonprime MBS to date. The planned $489.6 million issuance will top a $426.2 million deal issued by Lone Star Funds in September. The types of mortgages in the latest Verus MBS are similar to those in a $249.0 million deal the firm issued in January, though the average loan balance in the new MBS is somewhat larger. Mortgages in the new deal have an average unpaid principal balance of ...

Redwood Trust is preparing to issue an expanded-prime mortgage-backed security that will be somewhat smaller than others issued by the real estate investment trust. Sequoia Mortgage Trust 2018-CH3 will be a $417.0 million issuance, according to a presale report by Kroll Bond Rating Agency. In May, Redwood issued a $520.5 million expanded-prime deal and the firm issued a $444.3 million MBS in February. Mortgages in the deals are largely similar and the pending issuance has ...

Originations of higher-priced conventional mortgages increased by 20.1 percent on an annual basis to $36.01 billion in 2017, according to a new ranking and analysis by Inside Nonconforming Markets of data from the Home Mortgage Disclosure Act. Higher-priced mortgages are loans that have an annual percentage rate higher than a threshold for the “average prime offer rate” on a comparable mortgage. First-lien mortgages with an APR ... [Includes two data charts]

In a recent comment letter submitted to the Consumer Financial Protection Bureau, the Mortgage Bankers Association argued for changes to regulations in an effort to boost originations of non-agency mortgages. The trade group cited problems with Appendix Q of the ability-to-repay rule and called for the government-sponsored enterprise “patch” for qualified mortgages to be extended to jumbo mortgages. Appendix Q sets QM standards for non-agency mortgages that aren’t eligible for sale to the GSEs or government-insured

Borrower complaints about nontraditional mortgage products from nonbanks in California decreased in 2017, according to the state’s Department of Business Oversight. The California DBO said nonbank lenders and servicers received 12,963 complaints about nontraditional mortgages, down 11.1 percent from 2016. However, officials at the DBO cautioned against making comparisons between data for 2016 and 2017 because the number of ... [Includes two briefs]

The spring homebuying season fueled a relatively modest increase in production of Ginnie Mae single-family mortgage-backed securities during the second quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Lenders issued $98.66 billion of Ginnie MBS backed by forward mortgages during the April-May cycle. That was up 6.6 percent from the first three months of the year, but 2018 continued to lag behind the pace set in 2017 by 10.7 percent. Given current trends, annual Ginnie MBS issuance in 2018 could fall short of the $400 billion mark for the first time since 2014. The flow of FHA and VA purchase mortgages was up a solid 23.7 percent from the first to the second quarter, bringing the total for the first half of the year to $121.01 billion. However, that was down 4.7 percent from the same period in 2017. Ginnie securitized $75.02 billion of FHA purchase loans in the ... [Charts]

Holdings of first-lien residential mortgages by banks and thrifts increased in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $2.025 trillion of first-lien home loans as of the end of the first quarter, up 0.5 percent from December 2017 and up 4.8 percent from March of last year. Trends varied somewhat among the 10 largest holders of first liens, with some posting large gains on an ... [Includes one data chart]