“The appetite in the secondary market for non-QMs is insane,” said Shea Pallante, an executive vice president at the Long Island-based Sprout Mortgage...
Along with the increase to the baseline limit, caps on Fannie Mae, Freddie Mac and government-insured loans in high-cost areas would also rise, to as much as $760,000…
Professionals familiar with the product say investment-property loans underwritten using debt service coverage ratios are easier to underwrite than mortgages made to self-employed borrowers using bank statements...
Since mid-September, four nonprime-related M&As have either been announced or have come to light through market sources: Deephaven Mortgage’s acquisition by Pretium Partners; Redwood Trust’s purchase of CoreVest American Finance and Citadel Servicing’s takeover by HPS Investment Partners. And now the Luxury deal.
Originations are increasing, demand in the secondary market is strong and the interest rate premium on non-QMs is declining, helping to prompt more lending volume.
KBW on Ocwen: “While the company is setting up MSR [mortgage servicing rights] financing facilities, management noted returns on available MSR trended down, though the company did lower its targeted ROE [return on equity] on agency MSR to 8.5% from 9.5%."
RSS