Non-Agency MBS

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

January 19, 2018 - Inside MBS & ABS

Issuance of Non-Agency MBS Backed by New Jumbo and Expanded-Credit Mortgages Starts 2018 with a Bang

After a typical lull at the end of the year, issuance of non-agency MBS is coming fast and furious. A number of issuers are prepping deals backed by a variety of newly originated loans, including prime jumbo mortgages, expanded-credit mortgages and loans eligible for sale to the government-sponsored enterprises.

January 12, 2018 - Inside FHA/VA Lending

Ginnie MBS Program Faltered In 2017, Refi Flow Up in 4Q17

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]

January 12, 2018 - Inside Nonconforming Markets

Angel Oak Sees Strong Demand for Non-QMs

Institutional investors are getting more comfortable with non-qualified mortgages, according to Angel Oak Capital Advisors. The firm announced last week that it raised $291 million in capital commitments for a private credit fund that will focus on non-QMs. The initial fundraising goal for Angel Oak Real Estate Investment Fund I was $250 million, according to AOCA. Officials weren’t willing to disclose how the fund will invest in non-QMs, but it has been involved in non-agency ...

January 12, 2018 - Inside Nonconforming Markets

DoubleLine Entity Plans to Issue Non-Agency MBS

DoubleLine Capital, an investor in non-agency mortgage-backed securities, established an entity in recent months with plans to issue non-agency MBS. The issuance and related activities will be conducted via the new Mortgage Opportunities Capital, according to filings with the Securities and Exchange Commission. The filings were completed in October but didn’t gain prominence until a recent story published by Bloomberg. Jeffrey Gundlach, DoubleLine’s CEO, initially pushed back ...

January 12, 2018 - Inside Nonconforming Markets

New Lone Star Nonprime MBS Slightly Smaller

After issuing nonprime mortgage-backed securities with post-crisis record-breaking sizes, the latest deal from Lone Star Funds will be slightly smaller. The firm is set to issue a $401.21 million nonprime MBS this month, according to presale reports by DBRS and Fitch Ratings. COLT 2018-1 Mortgage Loan Trust follows a $426.18 million issuance from Lone Star in September. That was the largest nonprime MBS backed by post-crisis originations. All of the loans in the previous issuance ...

January 12, 2018 - Inside Nonconforming Markets

Redwood Quickly Preps Two Prime Jumbo MBS

Redwood Trust is set to issue two prime jumbo mortgage-backed securities in January, according to presale reports published this week. Issuance of two similar deals in quick succession by one firm is relatively uncommon, but Redwood appears to see strong demand from investors and has mortgages to sell. Sequoia Mortgage Trust 2018-1, a $341.25 million issuance, is scheduled to close on Jan. 19. A $462.01 million MBS, Sequoia Mortgage Trust 2018-2, is penciled in for Jan. 25 ...

January 12, 2018 - Inside Nonconforming Markets

Prime Jumbo MBS, Expanded-Credit MBS Issuance Up in 2017, Sharp Increase in 4Q

Issuance of non-agency mortgage-backed securities backed by new originations increased on an annual basis in 2017, with gains from prime jumbo MBS and expanded-credit MBS, according to a new ranking and analysis by Inside Nonconforming Markets. A total of $10.88 billion of prime jumbo MBS was issued during the year, up 16.7 percent from 2016. Expanded-credit MBS – which include mortgages with alternative documentation, non-qualified ... [Includes one data chart]

January 12, 2018 - Inside MBS & ABS

Non-Agency MBS Market Finishes Strong in 4Q17, Though Seasoned Collateral Still Dominates Sector

Non-agency MBS issuance had its best quarter of 2017 during the final three months of the year, boosting annual production 30.2 percent higher than in 2016, according to a new ranking and analysis by Inside MBS & ABS.

January 5, 2018 - Inside MBS & ABS

Entity Established by DoubleLine Set to Issue Non-Agency MBS and CMBS, Attract Other Investors to Offerings

DoubleLine Capital, an investment management firm, recently created a new entity with plans to issue non-agency MBS and commercial MBS. These activities will be conducted via the new Mortgage Opportunities Capital, according to filings with the Securities and Exchange Commission.

January 4, 2018 - Inside Mortgage Finance

Quicken Taps the Corporate Bond Market Yet Again. But Will (or Can) Others Follow Suit?

In late December, Quicken Loans sold roughly $1 billion worth of corporate debt through a pri-vate placement, agreeing to pay investors an attractive yield of 5.25 percent.

December 22, 2017 - Inside Nonconforming Markets

Few Losses on Non-QM MBS, Some Delinquencies

Investor demand for non-agency mortgage-backed securities with non-qualified mortgages appears to have been boosted by the performance of such deals issued in recent years. There have been some delinquencies – owing to somewhat loose underwriting standards – but investors have largely been protected from losses. DBRS recently analyzed 18 non-QM MBS issued since 2015 and found that only three deals had experienced losses as of September. A $150.4 million deal from ...

December 22, 2017 - Inside Nonconforming Markets

GSE-Eligible Loans Prominent in MBS from Chase

Some 55.2 percent of the loans in JPMorgan Chase’s forthcoming $883.8 million non-agency mortgage-backed security will be eligible for sale to the government-sponsored enterprises. Chase has included conforming mortgages in previous non-agency MBS but usually in smaller amounts. The GSE-eligible mortgages were largely originated by Chase, along with some contributions from loanDepot. The GSE-eligible mortgages have an average balance of $536,992 ...

December 22, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Issuance Expected To Grow in 2018, Standards May Loosen

Issuance of prime non-agency mortgage-backed securities will increase next year, according to predictions from various industry analysts. Some see a gradual increase while analysts at Kroll Bond Rating Agency said volume could double when including so-called expanded-prime MBS. Kroll said prime non-agency MBS issuance could hit nearly $20.0 billion in 2018. “Assuming that spread tightening across structured finance remains at or near current levels, execution may continue to favor ...

December 15, 2017 - Inside MBS & ABS

Non-Agency Single-Family Rental Securitization Volume Peaked in 2015, Analysts Don’t See a Rebound Coming

Issuance of single-family rental securities started in 2013 and hit $7.17 billion in 2015, according to Inside MBS & ABS. Industry analysts suggest that the relative boom in issuance is over due to a number of factors, including activity by the government-sponsored enterprises.

December 8, 2017 - Inside Nonconforming Markets

News Briefs

The nonprime mortgage-backed security closed by Angel Oak Capital Advisors at the end of November was oversubscribed, according to Lauren Hedvat, director of capital markets at the firm. The $210.2 million AOMT 2017-3 was backed by mortgages originated by Angel Oak Mortgage Solutions, Angel Oak Home Loans and Angel Oak Prime Bridge. Non-qualified mortgages accounted for 83.9 percent of the dollar volume in the MBS. Angel Oak said it’s ... [Includes two briefs]

December 8, 2017 - Inside MBS & ABS

Issuance of Non-Agency MBS Backed by Non-QMs Set to Take Off in 2018, Including Nonprime and Prime Loans

The dollar volume of non-agency MBS backed by non-qualified mortgages could double or even triple next year, according to industry analysts. The increased issuance is expected to come from nonprime and prime borrowers who don’t qualify for conforming mortgages.


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