The latest non-agency mortgage-backed security from JPMorgan Chase will include a higher share of conforming mortgages than the previous issuance from the firm. Chase is preparing to issue a $999.0 million MBS, according to presale reports from DBRS, Fitch Ratings and Moody’s Investors Service. Mortgages eligible for sale to the government-sponsored enterprises account for 65.1 percent of the collateral, amounting to $650.3 million. GSE-eligible mortgages ...
The $395.8 million nonprime mortgage-backed security Angel Oak Capital Advisors closed this week was met with strong demand from investors, according to the firm. “We believe that, relative to other recent [non-qualified mortgage] transactions, the tight pricing of AOMT 2018-3 demonstrates that investors have the confidence in and demand for the Angel Oak securitization program,” said Lauren Hedvat, a managing director of capital markets at Angel Oak. Pricing spreads ...
Western Asset Mortgage Capital Corp. is among a number of nonbanks investing in non-qualified mortgages. Officials at the real estate investment trust suggest that its investment strategy differs from many of the other buyers in the sector. “Our strategy for non-QMs is quite different relative to all other market participants,” said Anupam Agarwal, WAMCC’s CIO, during the REIT’s recent earnings call. He noted that WAMCC is acquiring non-QMs with strong credit scores and low loan-to-value ratios ...
Starwood Property Trust plans to be a regular issuer of mortgage-backed securities backed by non-qualified mortgages after successfully closing its first deal this week. Loans in the $374.1 million issuance were sourced from Impac Mortgage Holdings, which is working to increase non-QM production, delivering the loans to Starwood and potentially other outlets. Jeffrey DiModica, president of Starwood Property Trust, said the real estate investment trust expects to be a “frequent issuer” ...
Ellington Financial could issue its second mortgage-backed security backed by non-qualified mortgages before yearend, according to officials at the nonbank. “We are nearing critical mass of product for a follow-on securitization and plan for that later this year, subject, of course, to market conditions,” said Laurence Penn, Ellington’s CEO and president. At the end of the June, Ellington held $150.2 million of non-QMs. Mark Tecotzky, co-CIO at Ellington, noted that the firm is increasing ...
Two lenders recently launched proprietary reverse-mortgage products. Quicken Loans’ One Reverse Mortgage unit is offering Home Equity Loan Optimizer. “With HELO, many high-value homes, condominiums, and solar-panel homes may qualify for a reverse mortgage,” One Reverse said. “Along with that, there is no mortgage insurance premium required and the amount clients may receive in proceeds is up to $4.0 million.” Longbridge Financial launched its Platinum ... [Includes two briefs]
With refinance business drying up, more lenders and loan aggregators are entering the expanded-credit market, launching non-qualified mortgage programs and other products.
The majority of loans in expanded-credit mortgage-backed securities are adjustable-rate mortgages, while such loans are few and far between in prime non-agency MBS, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]
Citadel Servicing Corp., Irvine, CA, originated $389.3 million of non-qualified mortgages during the second quarter, a 32.3 percent sequential gain, according to figures the company provided to Inside Nonconforming Markets this week.
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