JPMorgan Chase is preparing to issue a non-agency mortgage-backed security stocked entirely with loans eligible for sale to the government-sponsored enterprises. While Chase has long included GSE-eligible loans in its non-agency MBS, the deals generally also include non-agency jumbo mortgages. The mortgages in the $313.56 million deal largely look to be conforming jumbos. The loans have an average balance of $527,877. Fitch Ratings noted that the collateral attributes of the pool are ...

Lenders would be more willing to offer non-qualified mortgages if federal regulators established a “regulatory sandbox,” according to the Mortgage Bankers Association. David Stevens, president and CEO of the MBA, made the suggestion in a letter to the Treasury Department last week. He described the concept as a space where businesses can test innovative products and processes without risk of regulatory consequences from noncompliance. Stevens said a sandbox would be ...

Nonbank wholesale lenders rolled out a variety of non-agency products in recent weeks, including prime jumbo mortgages, non-qualified mortgages and nonprime offerings. Newfi Lending launched Sequoia Porfolio Plus, a program where all underwriting and exceptions are handled in-house. Steve Abreu, Newfi’s CEO, said the new offering combines “the best of jumbo and non-traditional borrowing options.” The program allows for loan amounts of up to $2.0 million, credit scores ...

Bill Ashmore, the former president of Impac Mortgage Holdings, is trying to raise money for a new venture that will focus on non-qualified mortgages. Ocwen Financial forgave approximately $857 million in mortgage debt in 2017, according to the firm. Since the beginning of 2008, the servicer has completed more than $18.5 billion of principal forgiveness via loan modifications, largely on non-agency mortgages. Velocity Commercial Capital is set to ... [Includes three briefs]

A subsidiary of Annaly Capital Management plans to issue a non-agency mortgage-backed security with a mix of seasoned mortgages. The $327.16 million OBX 2018-1 Trust will include loans that have seasoned for an average of four years and mortgages that were called from non-agency MBS issued in 2005. The newer loans have a total unpaid principal balance of $121.86 million. Some 11.4 percent of them include interest-only features. Non-qualified mortgages account for ...

Originations of interest-only mortgages declined for many of the major players in the sector in 2017, according to a new ranking and analysis by Inside Nonconforming Markets. The declines were well beyond the slowdown in the overall volume of originations seen during the year. Among the top 15 IO lenders, six had lower production volume in 2017, with annual declines ranging from 6.7 percent to 61.1 percent. According to estimates by ... [Includes one data chart]

Impac Mortgage Holdings will continue to focus on originating non-qualified mortgages after a change in leadership at the nonbank. Joseph Tomkinson, the longtime chairman and CEO of Impac, is scheduled to step down in July, with George Mangiaracina taking over as CEO. Mangiaracina has been an executive vice president and managing director at Impac since early 2015. Since then, Impac has boosted its non-QM production while focusing on refinances of conforming mortgages ...

The Senate last week approved a regulatory relief bill that would grant qualified mortgage status to certain loans held in portfolio by smaller banks even if the mortgages would otherwise be non-QMs. The portfolio QM provision also has support in the House, but it has prompted concerns from some industry analysts. Moody’s Investors Service noted that if the provision becomes law, small banks won’t have to meet certain documentation requirements included in the Consumer ...

Angel Oak Prime Bridge, a lender offering short-term financing for house flippers, hopes to increase originations this year by more than five times the volume it produced in 2017. AOPB had more than $130.0 million in originations in 2017, according to Robert Malcahy, a senior vice president at the lender. He said the originations were focused in the Southeast. “In 2018, we have an expanded footprint and product offering targeted volume over $700.0 million,” Malcahy said ...

JPMorgan Chase is set to issue another non-agency mortgage-backed security mixing jumbo mortgages and loans eligible for sale to the government-sponsored enterprises. DBRS, Moody’s Investors Service and S&P Global Ratings assigned preliminary AAA ratings to the planned $866.07 million JPMorgan Mortgage Trust 2018-3 this week. Some 1,348 loans will be included in the issuance, divided nearly evenly between jumbo mortgages and loans eligible for sale to the government-sponsored ...