Non-Agency MBS

Browse articles from all of our Newsletters related to Non-Agency MBS.

April 20, 2018 - Inside Nonconforming Markets

A ‘Bespoke’ Non-Agency MBS from Redwood

Redwood Trust is set to issue a “bespoke” prime non-agency mortgage-backed security. The deal largely looks like other MBS from Redwood, but a spokesperson for the real estate investment trust said the MBS was tailored for one investor. Kroll Bond Rating Agency placed preliminary ratings on the planned $338.7 million Sequoia Mortgage Trust 2018-4 last week. The deal is scheduled to close on April 20. There are only minor differences between the MBS and three other ...


April 20, 2018 - Inside Nonconforming Markets

Invictus Brings Investment-Property MBS

An affiliate of Invictus Capital Partners is set to issue a unique non-agency mortgage-backed security backed by loans on investor properties that differs from the structure of typical single-family rental deals. Invictus’s Verus Mortgage Capital predominantly focuses on non-qualified mortgages and has issued deals backed by non-QMs along with a sprinkling of mortgages on investment properties. Many other nonprime MBS issuers have brought similar deals. The planned $258.4 million ...


April 20, 2018 - Inside Nonconforming Markets

SG Capital Partners Obtains Ratings for New Deal

SG Capital Partners is set to issue its first rated nonprime mortgage-backed security after bringing to market some unrated deals in recent years and aggregating loans in a rated nonprime MBS issued by a competitor. Morningstar Credit Ratings and S&P Global Ratings assigned preliminary AAA ratings to the planned $140.1 million SG Residential Mortgage Trust 2018-1 last week. Somewhat unusually, the rating services came up with different figures on the share of non-qualified mortgages ...


April 20, 2018 - Inside Nonconforming Markets

Mixed Views on Flagstar’s Due Diligence Sampling

Full third-party due diligence reviews were completed on only 20.0 percent of the loans being pooled by Flagstar Bank into a new non-agency mortgage-backed security. Rating services delivered mixed assessments of the due diligence sampling rate, which could set a standard for the market. The $704.1 million Flagstar Mortgage Trust 2018-2 is scheduled to close at the end of the month. DBRS, Fitch Ratings, Kroll Bond Rating Agency and Moody’s Investors Service all ...


April 20, 2018 - Inside Nonconforming Markets

Chimera, Chase, Redwood Plan New MBS

Chimera Investment, JPMorgan Chase and Redwood Trust plan to issue new prime non-agency mortgage-backed securities in the coming weeks, adding to momentum in a market where most issuers are optimistic about production volume. The planned CIM Trust 2018-J1 would mark a return to the jumbo MBS market for Chimera. The real estate investment trust has focused its issuance efforts on seasoned mortgages in recent years after dabbling in jumbo MBS around 2012 ...


April 20, 2018 - Inside Nonconforming Markets

Jumbo MBS Underwriting Holds Steady, Banks Remain Top Contributors in 1Q18

Issuance of prime jumbo mortgage-backed securities is on the rise but underwriting standards for loans in the deals aren’t changing much, according to a new analysis by Inside Nonconforming Markets. Some $4.23 billion of prime jumbo MBS was issued in the first quarter of 2018, the highest quarterly volume for the sector since the first three months of 2015. Issuers in the sector have largely maintained super-prime underwriting standards since the financial crisis ... [Includes two data charts]


April 20, 2018 - Inside MBS & ABS

Risk-Retention Requirements Prompted Better Mortgages In Commercial MBS and Higher Costs for Borrowers

Issuers of non-agency commercial MBS responded to risk-retention requirements by tightening underwriting standards and passing costs onto borrowers, according to an analysis by Craig Furfine, a professor at Northwestern University’s Kellogg School of Management.


April 20, 2018 - Inside MBS & ABS

New Issuers Enter Prime Non-Agency MBS Market as Volume Increases Along with Demand from Investors

Since the start of 2018, two new firms have issued prime non-agency MBS and a third player looks set to rejoin the sector. Issuers expect more competition this year due to relatively strong demand from investors for prime non-agency MBS.


April 13, 2018 - Inside MBS & ABS

Prime Non-Agency MBS Issuers Getting More Creative After Years of Plain Vanilla Issuance

With relatively strong demand from investors for prime non-agency MBS, issuers are starting to break the mold that was established after the financial crisis. Areas of experimentation include due diligence sampling, an emphasis on loans eligible for sale to the government-sponsored enterprises and specifically tailored transactions.


April 13, 2018 - Inside MBS & ABS

Non-Agency MBS Issuance Down Sharply in Early 2018 as Scratch-and-Dent Market Slows

The non-agency MBS market is starting to look more like it did before the financial collapse of 2008, although still a much slimmer version of its former self. [Includes three data charts.]


April 6, 2018 - Inside Nonconforming Markets

Chase Piles Conforming Loans in Non-Agency MBS

JPMorgan Chase is preparing to issue a non-agency mortgage-backed security stocked entirely with loans eligible for sale to the government-sponsored enterprises. While Chase has long included GSE-eligible loans in its non-agency MBS, the deals generally also include non-agency jumbo mortgages. The mortgages in the $313.56 million deal largely look to be conforming jumbos. The loans have an average balance of $527,877. Fitch Ratings noted that the collateral attributes of the pool are ...


April 6, 2018 - Inside Nonconforming Markets

loanDepot Issues Its Own Jumbo MBS

The first jumbo mortgage-backed security from loanDepot is set to close April 6. After a span where the nonbank contributed to jumbo MBS issued by other firms, loanDepot set up its own securitization shelf. The $299.83 million Mello Mortgage Capital Acceptance 2018-MTG1 was stocked with non-agency jumbos along with conforming jumbos eligible for sale to the government-sponsored enterprises. The deal received AAA ratings from DBRS and Moody’s Investors Service with ...


April 6, 2018 - Inside Nonconforming Markets

Angel Oak Issues Its Largest Nonprime MBS

Angel Oak Capital Advisors issued a $328.76 million nonprime mortgage-backed security this week, its biggest so far. Its previous high was a $210.45 million offering in July. DBRS and Fitch Ratings assigned AAA ratings to Angel Oak Mortgage Trust I, LLC 2018-1. The deal included credit enhancement of 35.6 percent on the senior tranche, somewhat lower than previous issuance from Angel Oak. Fitch said Angel Oak has strong underwriting and risk management practices, which ...


April 6, 2018 - Inside Nonconforming Markets

Issuance of Non-Agency MBS Backed By New Loans Up Sharply in 1Q18

Issuance of non-agency mortgage-backed securities with prime jumbo loans and expanded-credit mortgages flourished in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. Combined, $6.28 billion of such securities was issued, more than double the activity in the first quarter of 2017 and up 24.6 percent from the fourth quarter of last year. Some $4.23 billion of prime jumbo MBS was issued during ... [Includes one data chart]


April 6, 2018 - Inside MBS & ABS

Barclays Negotiates Its Legacy Non-Agency RMBS Settlement Down to $2 Billion

Barclays Capital and its affiliates will pay $2.0 billion to settle claims brought by the U.S. Department of Justice related to the company’s underwriting and issuance of non-agency residential MBS before the financial crisis.


April 6, 2018 - Inside MBS & ABS

Lawyers Argue Risk-Retention Requirements Don’t Apply to Some Commercial MBS and Esoteric ABS

Certain types of MBS and ABS appear to have some wiggle room regarding risk-retention requirements. According to industry lawyers, many single-asset/single-borrower (SASB) commercial MBS can be structured to avoid risk retention and the rules might not apply to certain esoteric ABS.


March 23, 2018 - Inside Nonconforming Markets

Chase Brings Another MBS to Close Out 1Q

JPMorgan Chase is set to issue another non-agency mortgage-backed security mixing jumbo mortgages and loans eligible for sale to the government-sponsored enterprises. DBRS, Moody’s Investors Service and S&P Global Ratings assigned preliminary AAA ratings to the planned $866.07 million JPMorgan Mortgage Trust 2018-3 this week. Some 1,348 loans will be included in the issuance, divided nearly evenly between jumbo mortgages and loans eligible for sale to the government-sponsored ...


March 23, 2018 - Inside Nonconforming Markets

Non-QMs Still a Focus for Impac

Impac Mortgage Holdings will continue to focus on originating non-qualified mortgages after a change in leadership at the nonbank. Joseph Tomkinson, the longtime chairman and CEO of Impac, is scheduled to step down in July, with George Mangiaracina taking over as CEO. Mangiaracina has been an executive vice president and managing director at Impac since early 2015. Since then, Impac has boosted its non-QM production while focusing on refinances of conforming mortgages ...


March 23, 2018 - Inside Nonconforming Markets

Annaly Puts Eclectic Mix of Seasoned Loans in MBS

A subsidiary of Annaly Capital Management plans to issue a non-agency mortgage-backed security with a mix of seasoned mortgages. The $327.16 million OBX 2018-1 Trust will include loans that have seasoned for an average of four years and mortgages that were called from non-agency MBS issued in 2005. The newer loans have a total unpaid principal balance of $121.86 million. Some 11.4 percent of them include interest-only features. Non-qualified mortgages account for ...


March 23, 2018 - Inside MBS & ABS

Fitch Proposes Incorporating Servicer Quality in Non-Agency MBS Loss Modeling and Increasing Credit for Certain RPLs

Fitch Ratings recently proposed changes to its loss model criteria for non-agency MBS involving servicer quality and the performance of re-performing loans.


March 16, 2018 - Inside MBS & ABS

Citadel Servicing Pulls the Plug on Its First Non-QM MBS But Still Expects a Banner Year for Originations

Citadel Servicing Corp., which has been working on its first MBS deal backed by non-qualified mortgages for six months, killed the transaction this week, industry sources familiar with the matter told Inside MBS & ABS.


Poll

What’s your opinion on how Mick Mulvaney has managed the CFPB since he took over three months ago?

He’s done a good job of paring back the agency’s excesses and we’d like to see more.

35%

I hope he totally dismantles the agency and sends those functions back to the agencies hence they came.

14%

Not bad, but he needs to take his time making additional changes.

12%

We’re totally aghast. He’s gone way too far in protecting the rights of companies not consumers!

39%