Banc of California is the top contributor to a new $388.16 million expanded-credit mortgage-backed security from an affiliate of Annaly Capital Management.
The market for non-qualified mortgages is getting more crowded, with new lenders entering the space and other lenders adding to their programs or enhancing their offerings.
Originations of adjustable-rate mortgages declined 11.6% in 2018, driven by sharp decreases at a number of banks that dominate ARM production. The sector also lost some market share during the year.
Interest-only mortgage originations in 2018 declined 12.1% among a group of top-ranked lenders. The decline was slightly greater than the drop in total first-lien originations.
After years of acquiring mortgages as whole loans, PIMCO and MetLife are set to issue separate non-agency MBS stocked with seasoned mortgages. An affiliate of PIMCO plans a $382.56 million issuance while MetLife's deal could be double that size.
It was rumored that PIMCO was considering issuing non-agency MBS backed by nonprime non-qualified mortgages but loans in the pending deal have seasoned for a number of years and the borrowers have prime credit...
Citadel Servicing and Angel Oak Companies reported a sharp increase in origination of nonprime mortgages for the first quarter. Demand from borrowers for non-qualified mortgages remains strong.