Credit Suisse issued its latest non-agency jumbo mortgage-backed security at the end of August, about one month after the previous issuance from the investment bank. Mortgages in the latest security, the $399.77 million CSMC Trust 2013-7, were seasoned an average of three months, according to DBRS. The mortgages have a weighted average interest rate of 3.875 percent. All of the mortgages have 30-year fixed-rate terms, and one has a 10-year interest-only feature. The deal received AAA ratings with ...
Correspondent lenders whose mortgages end up in non-agency jumbo mortgage-backed securities could be required by issuers to retain a portion of the risk from the issuance, according to the net risk-retention rule proposed last week by federal regulators. As with the risk-retention rule originally proposed in 2011, the new proposal allows security sponsors to require certain originators to retain risk on securitized assets. Issuers of non-agency MBS subject to risk-retention requirements would be ...
The Department of Housing and Urban Development is phasing out the Saver and Standard loan products under the Home Equity Conversion Mortgage program in favor of a new reverse mortgage that limits the amount of money a borrower can draw at closing to 60 percent of the value of the home. The fixed and adjustable HECM Standard and Saver options will still be available until Sept. 29, said HUD. The revised principal limit, pricing and disbursement policies for the new HECM product will become effective on Sept. 30. The revised HECM guidance also ...
Although agency originations and refinance activity continued to dominate residential mortgage lending during the second quarter of 2013, a new Inside Mortgage Finance analysis and ranking reveals that both those components were losing steam. In fact, the only product category to show growth during the period was the jumbo market, where originations increased by 9.3 percent and reached their highest quarterly volume an estimated $59 billion since the third quarter of 2007. On a year-to-date basis, jumbo originations were up 17.7 percent from the first half of last year. Agency production still accounted...[Includes two data charts]
No one in the mortgage industry expects that subprime lending will revive much unless its the subprime of yesteryear where equity was a key factor in determining whether a borrower should get a loan. The handful of subprime (hard money, call it what you will) lenders active today require hefty down payments in the range of 30 percent. The most successful subprime lender in terms of money raised is Citadel Loan Servicing of Irvine, CA, the brainchild of Dan Perl, which raised ... [Includes three briefs]
Originations of non-agency jumbo mortgages continued to increase in the second quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. The growth was fueled by banks offering highly competitive interest rates in an effort to retain jumbos in portfolio. Wells Fargo was the top-ranked jumbo lender through two quarters in 2013, by a wide margin. The lender had $21.87 billion in jumbo originations in the first half of 2013, accounting for 19.4 percent of ... [Includes one data chart]
Two Harbors Investment is set to issue its first non-agency jumbo mortgage-backed security. The real estate investment trust is working on building its jumbo conduit operations, but in the meantime, Two Harbors plans to securitize mortgages it purchased from Bank of America. Two Harbors $434.17 million Agate Bay Mortgage Trust 2013-1 is set to receive AAA ratings with credit enhancement of 7.70 percent for the top-rated tranche. Mortgages to be included in the security have seasoned for ...
Fitch Ratings updated its loss model criteria for non-agency jumbo mortgage-backed securities this month, including new default estimates that vary by origination channel. Other rating services take the origination channel into account when rating new jumbo MBS, but not necessarily to the extent that Fitch has taken. Fitch has determined that loans originated through a direct retail channel have a lower default risk than those originated through a broker, correspondent or wholesale channel, the rating ...
With credit standards loosening somewhat, some commercial banks are listening to pitches from private-money lenders that are searching for warehouse lines, but so far its been a case of more smoke than fire. During the subprime meltdown of 2007, banks and Wall Street firms exited the nonprime warehouse sector and have yet to return. According to warehouse consultant Michele Perrin, several banks are willing to make warehouse lines on private-money mortgages, but only up to $5 million per deal ...
FHA lenders have gradually stretched to originate loans for borrowers with more modest credit scores in recent quarters, although these borrowers typically are better positioned to keep up with their payments, according to an Inside FHA Lending analysis of data released by the agency. The average credit score for single-family loans endorsed in the second quarter of 2013 was 693 the lowest such average in nearly four years. This is partly the result of a shift toward more purchase-money mortgages, which generally have ... [1 chart]