Cart

Inside Nonconforming Markets

October 2, 2015

View Archived Issues

Jumbo MBS Issuance Declines for Second Consecutive Quarter; Surpasses 2014 Volume

The volume of jumbo mortgage-backed securities issued in the third quarter of 2015 fell 17.7 percent compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. It was the second consecutive quarterly decline for jumbo MBS issuance after production hit $4.60 billion in the first three months of the year. Five issuers combined to issue $2.56 billion in jumbo MBS in the third quarter. Two of them increased ... [Includes one data chart] Read More

Variety of Factors Limiting Non-Agency MBS

The recent ABS East conference prompted another round of introspection among participants in the non-agency mortgage-backed security market. While efforts to address concerns raised by potential investors are progressing, a multitude of issues continues to hamper non-agency MBS issuance. Issuers continue to focus on finding investors willing to buy AAA tranches of non-agency MBS. “Some of the AAA investors will come back when the pricing gets a little more ... Read More

Competition for Jumbos Remains Intense

Moves by two players in the jumbo market demonstrate that competition for originations of jumbo mortgages remains strong. Officials at Titan Capital Solutions have confirmed that the firm will cease its correspondent funding operation for jumbos. “We made the decision as the space was becoming really crowded and those entering the space have much bigger, deeper pockets than Titan,” said Ruth Lee, the lender’s executive vice president. “It was a great channel ... Read More

MBS Likely to Get Boost from Deal Agent

The inclusion of a deal agent or transaction manager in new non-agency mortgage-backed securities would significantly increase investors’ confidence in the sector, according to industry participants. Alessandro Pagani, a portfolio manager and head of securitized assets at Loomis Sayles, said a large number of institutional investors have pushed for a deal agent and the hope is that if non-agency MBS includes the feature, investors will buy into the deals ... Read More

LO Comp Among Factors Limiting Non-QMs

Add loan-originator compensation rules to the list of things hindering the origination of loans that fall outside the qualified-mortgage standard. Bob Magee, chief investment officer at Shellpoint Partners, said many loan officers and brokers are reluctant to work on non-QMs because the loans take more time to originate, often get rejected and yet tend to offer the same compensation as an agency mortgage. “If I have loan officers who are paid on a commission for ... Read More

CFPB Urged to Adjust Non-Agency QM Standards

A quirk in the way the Consumer Financial Protection Bureau drafted standards for qualified mortgages has put non-agency lenders at a disadvantage, according to a former CFPB official that was heavily involved in drafting the ability-to-repay rule. At the recent ABS East conference, Peter Carroll, an executive vice president at Quicken Loans, reiterated calls for the CFPB to make adjustments to Appendix Q of the ATR rule. Appendix Q details documentation requirements ... Read More

Sales of Higher-Priced Mortgages Increased in 2014

Sales of higher-priced mortgages – a proxy for nonprime loans – increased in 2014 compared with the previous year, according to an analysis by Inside Nonconforming Markets of data from the Home Mortgage Disclosure Act. Some $52.28 billion in higher-priced mortgages were sold in 2014, up 48.6 percent from the previous year. Sales to Ginnie Mae accounted for a large portion of the increase along with sales to other purchasers, including ... [Includes one data chart] Read More

News Briefs

The planned $150 million non-agency mortgage-backed security from Angel Oak Mortgage Solutions and Nomura Securities might have been delayed due to issues involving representations and warranties, according to people familiar with the deal. The MBS was to be backed by nonprime non-qualified-mortgages and might be scrapped. Hudson City Savings Bank was hit with a consent order last week from the Consumer Financial Protection ... [Includes eight briefs] Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results