Among the top 15 servicers of subprime mortgages, only one grew its portfolio over the 12 months prior to the end of September, according to a new ranking and analysis by Inside Nonconforming Markets. The increase was posted by Citadel Servicing Corp., which is boosting its portfolio with originations of nonprime mortgages. Citadel handled a subprime portfolio with an unpaid principal balance of $1.80 billion as of September-end. The portfolio grew ... [Includes one data chart]

The strong demand for non-agency mortgage-backed securities this year looks to be tied to a number of factors, according to industry analysts. ICE Data Services, a firm that tracks non-agency MBS prices, noted that the sector has been helped by large settlements involving legacy non-agency MBS. And investors are more comfortable with the legal liability associated with non-qualified mortgages, prompting significant securitization of the loans. Issuers are also experimenting with ...

Federal regulators last week proposed a significant expansion in the number of non-agency mortgages that will not need a full appraisal. Currently, non-agency mortgages with loan balances of less than $250,000 don’t need an appraisal if originated by a bank. The regulators proposed increasing the threshold to $400,000. Mortgages below the appraisal threshold still require an evaluation, just not a full appraisal. Banking regulators said the proposal is an effort to reduce ...

An affiliate of American Mortgage Investment Partners Management plans to issue a non-agency mortgage-backed security with a high share of cash-out refinances on investment properties. Some 70.2 percent of the mortgages in the $199.5 million RCO 2018-VFS1 Trust are cash-out refis while 16.0 percent were to purchase an investment property. All of the loans were originated by Visio Financial Services, a lender that started producing mortgages in September 2015 ...

Two mortgage-backed securities with non-qualified mortgages originated by Impac Mortgage Holdings are in the works, according to presale reports released last week. An affiliate of Starwood Capital Group plans to issue a $280.0 million MBS with loans solely originated by Impac, while Deephaven Mortgage plans to issue a $374.3 million deal with production from 77 lenders, led by Impac with a 14.7 percent share. Among nine mortgage-backed securities ... [Includes two briefs]

Originations of non-agency jumbo mortgages fell more than overall mortgage production, prompting the sector to lose market share in the third quarter, according to a new analysis by Inside Nonconforming Markets. An estimated $76.0 billion of non-agency jumbos were originated in the quarter, down 5.0 percent from a quarter ago. Total first-lien originations fell by 2.2 percent, according to Inside Mortgage Finance. Jumbos accounted for 17.5 percent of total ... [Includes one data chart]

Among the four main mortgage products, only originations of expanded-credit loans increased on a quarterly basis in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Originations of expanded-credit loans rose 10.5 percent in the third quarter. The sector includes non-qualified mortgages, nonprime loans, mortgages with alternative documentation and any other non-jumbo mortgages not eligible for delivery to ... [Includes one data chart]

Demand for non-agency products, including non-qualified mortgages, is growing among real estate investment trusts. A number of REITs have ramped up their investments in the non-agency sector, with some issuing mortgage-backed securities. Annaly Capital Management, the largest mortgage REIT, had $525.0 million in residential whole loans at the end of September, up from $392.0 million a year ago. The REIT didn’t disclose the total unpaid principal balance of its whole-loan holdings ...

The latest jumbo mortgage-backed security from JPMorgan Chase differs significantly from others deals issued by the company. The $459.3 million MBS is stocked with mortgages that have relatively high loan-to-value ratios. The average combined LTV ratio for loans in JPMorgan Mortgage Trust 2018-LTV1 is 86.2 percent and nearly every mortgage has an LTV ratio greater than 79.0 percent. The average combined LTV ratio on prime non-agency MBS issued in the third quarter of 2018 was ...

The non-qualified mortgage share of Impac Mortgage Holding’s total originations has increased significantly in the past year. The nonbank lender has enhanced its marketing efforts for such loans as the volume of conventional refinances has declined. Non-QMs accounted for 40.9 percent of Impac’s $853.2 million total originations in the third quarter of 2018 compared with 11.5 percent of $2.08 billion of originations a year ago. Impac’s non-QM originations increased 45.9 percent to $349.2 million ...