Occupancy fraud on jumbos; FoA to sell its business-purpose lending unit to Roc Capital; new CEOs at two leading fix-and-flip lenders; new COO at Deephaven.

AB CarVal Investors and Ares Management are in the market with separate expanded-credit MBS, marking the first time either firm has offered that type of MBS.

The 60-day-plus delinquency rate on subprime auto ABS hit a record in December. Performance is expected to decline this year and non-investment-grade ratings could face downgrades.

SFA and others have asked the SEC to extend the comment period on a proposed rule regarding conflicts of interest in the securitization market; SFA revises TRID grid; Fitch reviews RPL MBS; new ABS with Small Business Act Section 7(a) loans.

Up until now, FirstKey’s securitization activity has been focused on seasoned collateral.

The combined group issued $3.75 billion of unsecured debt in 2020 and an additional $3.90 billion in 2021.

The delinquency rate was pushed up during the fourth quarter by a weakening economy and inflation. The unemployment rate is projected to increase this year, which will likely drive delinquencies higher. (Includes data chart.)

Non-QMs in the MBS have an average coupon of only 5.00%.

Commercial banks and savings institutions increased the amount of mortgage servicing they handle for other entities in the fourth quarter of 2022, although valuations for the asset declined. (Includes data chart.)

The seven nonbank mortgage companies tracked by Fitch Ratings don’t have any unsecured debt set to mature this year, and only Freedom Mortgage has a relatively small amount of unsecured debt that will mature in 2024.