Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

January 19, 2018 - IMFnews

Short Takes: GSE Reform is Dead, Here’s Why / Okay, Maybe a 20 Percent Chance of Passage / What’s Riskier? GSE Stock or Bitcoin? / Nonbank CEO Ready to Depart / Brett Hively Resurfaces / FHA and the Government Shutdown

The White House may be committed to GSE reform, but Republicans are not...


January 19, 2018 - IMFnews

Non-Mortgage ABS Issuance Hit a Post-Crisis High in 2017

Total non-mortgage ABS production climbed to $211.72 billion in 2017, the market’s strongest year for new issuance since 2007…


January 18, 2018 - IMFnews

Galton Funding Tests the Non-Agency MBS Waters

Most of the mortgages in the MBS were underwritten with full documentation…


January 18, 2018 - IMFnews

Four Years In, Non-QM Market Struggles to Amass Volume

Authoritative numbers on the size of the non-QM space are difficult to come by.


January 17, 2018 - IMFnews

In 4Q17, A Sharp Increase in Prime Jumbo MBS, and Expanded-Credit Deals

Expanded-credit MBS – which include loans with alternative documentation, non-qualified mortgages and nonprime loans – hit $4.08 billion in 2017…


January 16, 2018 - IMFnews

Short Takes: GSE Reform, Yes. Passage? No / Galton’s Return to Nonprime / Citi’s Incredibly Shrinking MSR Portfolio / Legislative Reg Relief On the Way? / English Wants Expedited Review in CFPB Appeal

GSE reform may emerge from the Senate Banking Committee, but as for final passage...


January 16, 2018 - IMFnews

New Prime Jumbo MBS from Chase Smaller than Previous Deals

In the new MBS, 41.9 percent of the mortgages were eligible for sale to Fannie Mae and Freddie Mac…


January 12, 2018 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


January 12, 2018 - Inside Nonconforming Markets

News Briefs

PennyMac Financial Services launched its broker origination channel this week. While the company hasn’t originated many jumbo mortgages in the past year, it said the broker channel “will provide opportunities to grow volumes in attractive segments,” including jumbos. Carrington Mortgage Services recently launched some nonprime products in its wholesale channel. The lender allows for credit scores as low as 500 and loan amounts up to ... [Includes five briefs]


January 12, 2018 - Inside Nonconforming Markets

Tax Bill Likely to Reduce Demand for Jumbos

As the dust settles from tax reform legislation passed at hyper speed at the end of 2017, industry analysts project that demand for jumbo purchase mortgages will take a hit. The Tax Cuts and Jobs Act reduced the amount of new debt eligible for the mortgage interest deduction. For purchase mortgages taken out on Dec. 15, 2017, and beyond, only $750,000 of debt will be eligible for the interest deduction. Previously, the limit was $1.0 million. Additionally, deductions from federal taxes for ...


January 12, 2018 - Inside Nonconforming Markets

ARM Production, Market Share Up Slightly

While mortgage originations overall declined through three quarters in 2017, production of adjustable-rate mortgages increased slightly from the same period in 2016, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $161.0 billion of ARMs were originated in the first three quarters of 2017, up 2.5 percent compared with 2016. Total mortgage originations declined by 10.1 percent in that span ... [Includes one data chart]


January 12, 2018 - Inside Nonconforming Markets

IO Mortgage Originations Down Sharply in 2017

Through three quarters in 2017, originations of interest-only mortgages declined significantly, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 15 prominent IO lenders had $20.18 billion of such production in the first three quarters of 2017. That was down by 35.1 percent from the same span in 2016. First Republic Bank, the top IO lender in the group, increased its production of the loans, but volume has declined at ... [Includes one data chart]


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 - IMFnews

PennyMac Enters Broker Channel Looking for Growth in Purchase Mortgages and Jumbos

After some delays, PennyMac Financial Services launched its broker channel operations this week.


January 5, 2018 - IMFnews

What We're Hearing: And Now for a Word About Dow 25,000 / A 2 Percent FRM, Finally? / A Former Fannie Mae CEO and the U.S. Budget / Citadel CEO Perl Bullish on Non-QM / Hensarling Headed to Wall Street?

What's next for Jeb Hensarling? FHFA or Wall Street?


January 5, 2018 - IMFnews

Gundlach’s DoubleLine Ready to Take the Nonprime Plunge?

Officials at DoubleLine wouldn’t comment…


January 4, 2018 - IMFnews

Angel Oak Raises Almost $300 Million for Non-QM Investments

Angel Oak has securitized $850 million of non-QM loans since 2015.


January 4, 2018 - IMFnews

Redwood Set to Issue First Prime Jumbo MBS Deal of the Year

Clayton reviewed 481 mortgages that are slated for securitization…


January 3, 2018 - IMFnews

Prime Non-Agency MBS Could Boom This Year

Although a final tally has yet to be issued, volume for the year could total nearly $9.3 billion…


January 2, 2018 - IMFnews

New Wholesale Non-QM Lender Altloan Promises to be a ‘Disruptor’

Looks like Angel Oak, Caliber and Citadel Servicing Corp. are about to get some competition in the non-QM sector…


January 2, 2018 - IMFnews

The Story (So Far) on Non-QM MBS: Few Losses, Some Delinquencies; Investors Pleased…

A $150.4 million deal from Angel Oak Capital Advisors issued in December 2015 had a cumulative net loss of just 0.02 percent…


December 29, 2017 - IMFnews

What We’re Hearing: The Biggest Story of 2018? Fannie and Freddie, Of Course / An M&A Boom? / Good Luck Mr. Corso / Penny Spends Dollars to Buyback Common / A Very Short Publishing Break

We get the sense that merger and acquisition activity could be fierce as profit margins tighten...


December 29, 2017 - IMFnews

A Gain for Correspondents in Jumbo Market Share

Wells Fargo and JPMorgan Chase are the two dominant lenders in the jumbo market but their channel preferences have diverged over the past year…


December 28, 2017 - IMFnews

Guaranteed Rate Rolls Out New Jumbo Loan with No MI

The nonbank is also allowing a 50 percent debt-to-income ratio on the product.


December 28, 2017 - IMFnews

The Ocwen Legal Settlement Tally: 25 Down, Five to Go

Ocwen’s stock price peaked earlier in the decade at roughly $60.00 a share…


December 22, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


December 22, 2017 - Inside Nonconforming Markets

News Briefs

According to an analysis by Zillow, 11.2 percent of the 25.1 million homes that are currently worth enough to require a jumbo mortgage will fall under the conforming loan limit in 2018 due to higher loan limits established by the Federal Housing Finance Agency. The analysis was based on county-specific home prices and the assumption that jumbos allow a loan-to-value ratio no higher than ... [Includes two briefs]


December 22, 2017 - Inside Nonconforming Markets

Citadel Boosts Nonprime Portfolio

Citadel Servicing has increased its portfolio of nonprime mortgages in the past year and has taken steps to improve operations, according to Fitch Ratings. Citadel serviced mortgages with an unpaid principal balance of $1.1 billion as of the end of November, up from a $673.1 million portfolio as of the end of 2016. Some 1.8 percent of Citadel’s portfolio was 30 or more days delinquent as of November, according to Fitch. A significant portion of the portfolio was originated after ...


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

Annaly Seeing Strong Returns from Whole Loans

Significant investments in new non-agency whole loans are paying off, according to officials at Annaly Capital Management. The real estate investment trust started buying the loans in the second half of 2016 after acquiring Hatteras Financial. As of the end of the third quarter, Annaly held non-agency whole loans with an unpaid principal balance of $896.0 million. Whole loans accounted for 28.0 percent of Annaly’s residential credit portfolio as of the end of September, up from a ...


December 22, 2017 - Inside Nonconforming Markets

Banks Continue to Add Loans to Portfolio

Holdings of residential first-lien mortgages by banks and thrifts increased again in the third quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held first liens with a total unpaid principal balance of $1.99 trillion as of the end of the third quarter, up 1.1 percent from the previous quarter and a 3.3 percent increase from a year ago. First-lien holdings are dominated by three big banks: Wells Fargo ... [Includes one data chart]


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

Correspondents Gaining Some Jumbo Share

The correspondent share of jumbo originations has risen in the past year while the retail share declined, according to a new analysis by Inside Nonconforming Markets. The survey found that correspondent production accounted for 18.1 percent of jumbo originations in the third quarter of 2017, up from a 14.3 percent share in the third quarter of 2016. During that time, the retail share of the lenders’ jumbo production fell from 81.3 percent to ... [Includes one data chart]


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 - IMFnews

After Years of Unrated MBS Deals, Great Ajax Breaks the Mold

Great Ajax is a real estate investment trust that formed in 2014 and went public in early 2015.


December 14, 2017 - IMFnews

Home-Equity Lending Declined in 3Q17 but Not by Much

Banks and thrifts continued to retreat from the home-equity business in 3Q17 while credit unions pressed forward…


December 13, 2017 - IMFnews

Nonprime Lender Citadel Hopes to Hire 150 Over the Coming 12 Months

Citadel CEO Dan Perl: “We’re on a hiring spree.”


December 13, 2017 - IMFnews

Jumbo MSR Market Increases, Wells Fargo Continues Dominance

Moody’s noted that mortgages acquired by Chase’s jumbo conduit have performed exceptionally well…


December 12, 2017 - IMFnews

Jumbo Delinquency Rate Increased in 3Q17, but in Line with Overall Market

Late-payment rates rose due to a number of factors…


December 12, 2017 - IMFnews

Nonprime Lending Competition Could Heat up in 2018

It appears that Angel Oak, Caliber and Citadel Servicing Corp. might have more company in the nonprime arena come next year…


December 12, 2017 - IMFnews

REITs and Nonprime Lenders Look to Strike ‘Working Relationships’

Mike Fierman, managing partner and co-CEO of the Angel Oak Companies: “I get calls every day” from investment funds.


December 11, 2017 - IMFnews

Surprise: The Subprime Delinquency Rate Jumps in 3Q17

The dollar volume of outstanding subprime mortgages continues to decline…


December 8, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


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 Nonconforming Markets

Jumbo Market Braces for Hit from Tax Reform

Tax reform legislation on track for enactment by the end of the year could have an outsized impact on the jumbo market, according to industry analysts. The House and Senate are currently working to reconcile differences between their versions of the Tax Cut and Jobs Act. A concern for jumbo lenders is that both versions of the bill would set a $10,000 limit for deductions relating to state/local property taxes and eliminate deductions for state/local income taxes. The House bill ...


December 8, 2017 - Inside Nonconforming Markets

Government Guarantee Likely in Reform Effort

Housing-finance reform legislation in Congress will likely include a government guarantee for mortgage securities backed by conventional home loans after a concession this week by Rep. Jeb Hensarling, R-TX. The chairman of the House Financial Services Committee has long pushed to wind down Fannie Mae and Freddie Mac, removing the government guarantee associated with the government-sponsored enterprises. “I continue to believe that a government guarantee in ...


Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

vote to see results