An appeals court ruled in favor of Ocwen, finding that statements made by company officials were mere puffery that investors should not have relied on.
CEO Craig Knutson: “MFA’s reputation as a reliable buyer of residential whole loans and dependable capital partner has enabled us to source significant volume of whole loans, including transactions with limited competition.”
Originations of non-agency jumbo mortgages increased in the second quarter, spurred by low interest rates. The sector gained market share and some lenders said pipelines were strong heading into 3Q19.
Several real estate investment trusts, including MFA Financial and Starwood Property Trust, are expanding their portfolio of non-qualified mortgages. The loans provide attractive returns, whether retained or bundled into an MBS.
Annaly and Chimera are generating strong returns aggregating mortgages, issuing non-agency MBS and retaining subordinate tranches from the deals. Chimera plans to be a regular issuer of non-agency MBS with GSE-eligible loans.