Nearly 30% of borrowers with loans in the deal have received forbearance or a deferral. The servicer, Citadel, will not make advances on delinquent payments.
The newly public mortgage lender, Guild, reported $182.1 million in net income for the third quarter while the soon-to-be listed Finance of America posted net earnings of $241.6 million.
The traditional models used to predict consumer credit performance and newer machine learning methods can be extremely inaccurate, according to a new report.
The thirst for non-QM paper continues to be rad hot, thanks, in part, to investors’ desire for yield. It comes down to this: a 5% non-QM, though comparatively risky, is better than a 10-year Treasury yielding 95 basis points.
Performance on non-agency MBS has improved after the spike in late payments seen in the spring. However, borrowers who are still delinquent could prompt losses for investors.
The FHFA’s capital requirements include relatively harsh treatment of credit-risk transfer transactions from Fannie and Freddie but that view could change under the Biden administration.
Regulatory reforms initiated after the 2008 financial crisis seemed to work as intended during the COVID-19 downturn, according to participants at the ABS East conference.