With the rules for nonprime lending established – for the most part – under the Consumer Financial Protection Bureau’s recently finalized ability-to-repay requirements, at least four lenders have stepped up their plans to enter the nonprime origination market, a business that has been long dormant with certain exceptions.
After including a significant amount of ARMs in its first issuance of the year, the second non-agency jumbo mortgage-backed security of 2013 from Redwood Trust will consist largely of 30-year fixed-rate mortgages, according to a new presale report released by Kroll Bond Rating Agency.
Investors with nearly $1 trillion of holdings of non-agency mortgage-backed securities are concerned about the Obama administration’s latest loan modification proposal, according to Tom Deutsch, executive director of the American Securitization Forum.
Although 10 servicers have agreed to shell out $8.5 billion as part of the OCC/Federal Reserve foreclosure settlement, it won’t be known for up to a month exactly how much it will cost each bank.
A federal judge recently approved an $11.25 million settlement for investors who purchased $5.26 billion of non-agency MBS issued by jumbo lender Thornburg Mortgage. The lawsuit alleged false and misleading disclosures by Thornburg.