Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

October 20, 2017 - IMFnews

Non-Mortgage ABS Issuance Tumbled in 3Q17, But…

Bank of America Merrill Lynch and Guggenheim Securities were the top underwriters of business ABS at the three-quarter mark of 2017…


October 19, 2017 - IMFnews

Short Takes: Princeton Mortgage Enters Wholesale Arena / Ocwen Settles with Lone Star State / Stipulations Regarding REALServicing / The Original Trademark / Angel Oak Hires Fund Manager

Ocwen settled with Texas regulators as well...


October 19, 2017 - IMFnews

Ocwen’s Departure from the Wholesale Sparks Speculation: An Eventual Sale?

Ocwen’s recent barrage of regulatory settlements, coupled with the sale of the wholesale division and the recent hiring of investment banker Chris Whalen, is sparking talk...


October 19, 2017 - IMFnews

Mortgage Due Diligence Firms Open to Working Together to Standardize Reporting

Each due diligence firm applies its own interpretation of compliance...


October 18, 2017 - IMFnews

Radian Discloses More Pain from Services Unit (Clayton); Tennyson is Out as President

The MI also terminated Jeff Tennyson as president of the unit. No replacement will be named, a spokeswoman told IMFnews.


October 18, 2017 - IMFnews

Redwood Aims for Jumbos Outside of Banks’ Focus

Redwood’s Choice loan program allows for debt-to-income ratios of up to 49.9 percent while the limit for Select is 43.0 percent…


October 17, 2017 - IMFnews

Short Takes: More Trouble for SoFi & Fintech? / So, Maybe CFPB’s Cordray Won’t Run / Goldman Agrees to Buy Fix-and-Flip Lender / Housing Assistance Council Hires former HUD, USDA Official to Lead the Organization

With fall-out spreading from the turmoil at Social Finance, investors might be thinking twice about so-called “fintech” firms...


October 17, 2017 - IMFnews

Ranked No. 442 as an Originator, Fintech Firm Corrals $457 Million in Financial Commitments

Formed in 2014, LH originated $598 million in 2016, ranking 442nd overall, according to Home Mortgage Disclosure Act figures compiled by Inside Mortgage Finance.


October 17, 2017 - IMFnews

Ocwen Settles With Arkansas, DC, Tennessee; Hatchet Now Buried With 20 Jurisdictions

Investors are still waiting for Ocwen’s biggest outstanding dispute – the one with the CFPB – to be settled, one way or the other.


October 16, 2017 - IMFnews

Citadel Receives Ratings from Morningstar; Look for a Nonprime MBS in January

Morningstar said the company’s underwriting process, quality control and compliance functions were factors in the rankings…


October 16, 2017 - IMFnews

Stearns Lending Reveals it Has a Mortgage Joint Venture with SoFi

Stearns, however, doesn’t service any mortgages for SoFi…


October 16, 2017 - IMFnews

Surprise: Prime Non-Agency MBS Issuance Spiked in the Third Quarter

The nonprime MBS category includes some deals better categorized as Alt A…


October 13, 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.


October 13, 2017 - Inside Nonconforming Markets

News Briefs

After the standards for qualified mortgages took effect in 2014, few state-regulated banks stopped offering non-QMs, according to a survey by the Conference of State Bank Supervisors. “Non-QM mortgage lending activity appears relatively stable despite the regulatory tumult,” the state regulators said. According to a CSBS survey of more than 600 banks, the share of respondents that don’t offer non-QMs changed from 23.8 percent in 2014 to 26.5 percent ... [Includes one brief]


October 13, 2017 - Inside Nonconforming Markets

Ocwen Avoids SEC Action, Settles with States

Ocwen Financial revealed last week that it won’t face enforcement actions from the Securities and Exchange Commission regarding two outstanding investigations. And the nonbank has reached settlements with a number of the state regulators that took actions against the company earlier this year. The SEC was conducting investigations involving Ocwen regarding the use of collection agents and fees and expenses related to liquidated loans and real estate-owned ...


October 13, 2017 - Inside Nonconforming Markets

Republicans Critical of GSEs’ QM Exemption

A number of Republicans raised concerns last week about the exemption from qualified mortgage standards currently provided to mortgages eligible for sale to the government-sponsored enterprises. Loans must meet a number of standards to receive QM protections, including having a debt-to-income ratio below 43 percent. However, under the ability-to-repay rule from the Consumer Financial Protection Bureau that took effect in 2014, mortgages eligible for sale to Fannie Mae and Freddie Mac can receive QM status even if they have DTI ratios above 43 percent. The exemption is known as the “GSE patch.”


October 13, 2017 - Inside Nonconforming Markets

California Tops Jumbo Lending by State, Again

For originations of jumbo mortgages, it’s California and then everywhere else. The state accounted for 36.7 percent of jumbo lending in 2016, according to an analysis of Home Mortgage Disclosure Act data by Inside Mortgage Finance. Some $124.95 billion in jumbos were originated in the Golden State last year, up 18.2 percent from 2015. New York ranked second with $22.72 billion, accounting for 6.7 percent of total jumbo originations during the year. Jumbos ... [Includes one data chart]


October 13, 2017 - Inside Nonconforming Markets

Jumbo Lending Up in 2016, Share Down Slightly

Originations of jumbo mortgages increased by 16.3 percent in 2016 but the sector’s share of total originations declined somewhat from the previous year, according to a ranking and analysis by Inside Mortgage Finance of newly released Home Mortgage Disclosure Act data. Some $340.88 billion of jumbos were originated in 2016, with banks dominating the ranks of the top lenders. Jumbos accounted for 17.5 percent of total originations last year, down from ... [Includes one data chart]


October 13, 2017 - Inside Nonconforming Markets

Treasury Proposal Could Boost Non-Agency MBS

A proposal released last week by the Treasury Department could make issuing and investing in non-agency mortgage-backed securities more attractive for banks. The Treasury called for revisions to various regulations that apply to non-agency MBS in a broad report suggesting regulatory reforms for capital markets. “In its review of the securitization market, the Treasury found that regulatory bank capital requirements treat investment in non-agency securitized ...


October 13, 2017 - Inside Nonconforming Markets

Redwood Aims for Jumbos Outside of Banks’ Focus

Redwood Trust loosened its underwriting guidelines for jumbo mortgages in an effort to acquire loans beyond the typical standards set by big banks, according to officials at the real estate investment trust. “It’s meant to [address] the entire universe outside of the banks while still serving borrowers who we think are good candidates and will repay,” Christopher Abate, president of Redwood, said during an investor presentation in September. Redwood introduced its Choice expanded-prime ...


October 13, 2017 - Inside Nonconforming Markets

Prime Jumbo MBS Issuance Surged In 3Q17, Nonprime Market Slowed

Issuance of prime non-agency mortgage-backed securities increased by more than 50.0 percent from the second quarter to the third, while activity in the nonprime MBS market slowed, according to a new ranking and analysis by Inside Nonconforming Markets. Some $2.97 billion of prime non-agency MBS was issued in the third quarter, up 58.1 percent from the previous period. The deals were largely backed by jumbo mortgages, along with some loans ... [Includes one data chart]


October 13, 2017 - IMFnews

Non-Agency MBS Issuance Weakened in 3Q17 Despite Upswing in Prime Jumbo Deals

The bright spot was the prime jumbo MBS market where some $2.97 billion of new bonds were issued during the third quarter…


October 12, 2017 - IMFnews

Short Takes: Residential Production Plunges at Citi / MSR Holdings Down Too / But a Nice Profit for 3Q17 / JPMorgan Readies New Non-Agency MBS / Ocwen Exiting Wholesale Channel / Fannie Announces New NPL Auctions

Citi’s third-party servicing portfolio is down to $49.1 billion from $147.6 billion at Sept. 30, 2016...


October 12, 2017 - IMFnews

Ocwen Settles Servicing Disputes with Two More States

In all of these agreements, Ocwen neither admitted nor denied liability…


October 10, 2017 - IMFnews

Did the Department of Justice Ever Opine in the CFPB Case? Hard to Say…

No one’s talking, and there’s been no indication that the DOJ has even filed a brief in the Ocwen case…


October 6, 2017 - IMFnews

Treasury Answers Trump’s Call on Looser Regs, Floats Ideas for MBS and ABS Markets

The capital and liquidity requirements targeted by Treasury were largely established by the Basel III accords and the Dodd-Frank Act…


October 6, 2017 - IMFnews

MBS Issuance Up Solidly in 3Q17, but ABS Production Weakened

The GSEs and Ginnie Mae remain the dominant forces in the MBS/ABS market. Their combined single-family issuance hit $346.98 billion in 3Q17…


October 6, 2017 - IMFnews

Demand for RPLs Strong; Chimera Issues First Deal, MetLife is Ready

MetLife said a number of new investors have started buying RPLs in recent years. And even with the strong demand, it’s still a market that offers relatively attractive returns…


October 5, 2017 - IMFnews

Short Takes: Deal Makers Bolt Houlihan for Hovde / ThomaLee Buys Controlling Stake in Ten-X / SoFi Reaches Out to Baseball Fans / It Had to Happen Eventually: ‘Crowd Funding’ for a Downpayment / CA VP Victim in Las Vegas Shooting

Houlihan as been a major player in mortgage-related deals ever since it purchased Milestone Partners earlier in the decade…


October 5, 2017 - IMFnews

Ocwen Financial Hires Wall Street Veteran Chris Whalen

Early last year Whalen predicted the nation’s four largest commercial banks might exit the business of residential lending and servicing…


October 4, 2017 - IMFnews

A Coming Boom for Non-Agency MBS? New Deals are Oversubscribed

Kroll Bond Rating Agency projects that about $11.0 billion of prime non-agency MBS will be issued this year…


October 4, 2017 - IMFnews

Ocwen Says SEC Clears it of Wrongdoing in Two Matters

Ocwen suggests that other mortgage firms are being investigated by the SEC for their use of collection agents...


October 4, 2017 - IMFnews

Trouble in IO Land? 1H17 Production Down Almost 20 Percent

First Republic Bank originated $1.90 billion of IOs in the second quarter of 2017, ranking first nationwide.


October 3, 2017 - IMFnews

Lenders Defend Bank-Statement Mortgages

“Today we can definitely say we know everything about that borrower,” said Steven Schwalb of Angel Oak…


October 2, 2017 - IMFnews

Peter Heintz Departs as Co-Head of Loan Acquisitions at SG Capital

SG has been an investor in nonprime/non-QM loans and has even issued unrated deals…


October 2, 2017 - IMFnews

Chimera Readies its First Rated MBS Backed by RPLs After Issuing 16 Unrated Deals

The MBS is backed by 3,548 mortgages that have seasoned for more than 11 years, on average.


September 29, 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.


September 29, 2017 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group is getting closer to publishing an update to its series of “green papers” addressing reforms to the non-agency mortgage-backed security market. The industry group is soliciting feedback from industry participants on a draft proposal regarding key performance indicators that a deal agent or other parties would use to measure the effectiveness of servicers and master servicers...[Includes three briefs]


September 29, 2017 - Inside Nonconforming Markets

HMDA Data Show Uptick in High-Cost Mortgages

Mortgage lenders sold $49.74 billion of high-cost home loans to a variety of secondary market investors last year, according to a new Inside Nonconforming Markets analysis of Home Mortgage Disclosure Act data released late this week. Sales of high-cost mortgages rose 19.1 percent from 2015 to 2016, and accounted for 3.3 percent of total loans sold last year. HMDA reports are required to flag loans with interest rates that exceed the benchmark prime offered rate – basically the rates for Freddie Mac mortgages – as well as loans that are subject to special consumer protections under the Home Owner Equity Protection Act. Sales of HOEPA loans totaled...[Includes one data table]


September 29, 2017 - Inside Nonconforming Markets

Non-Agency Underwriting Loosening Somewhat

Lenders in the non-agency market are loosening underwriting standards to some extent as refinance activity is expected to decline. Some 22 percent of the lenders surveyed by Fannie Mae said they loosened underwriting standards for non-agency mortgages during the third quarter. And 13 percent said they plan to loosen credit standards in the fourth quarter. Only 3 percent of the non-agency lenders surveyed by Fannie said...


September 29, 2017 - Inside Nonconforming Markets

Mixed Trends in IO Production through 6M2017

Among the major originators of interest-only mortgages, production trends were decidedly mixed in the first half of this year, according to an analysis by Inside Nonconforming Markets. In a group of 12 lenders, six posted lower IO production compared with the first half of last year while some others boosted production significantly. Overall, the lenders originated $6.81 billion in IOs in the first half of 2017, down 19.9 percent from the same period last year. A fair amount of the decline in IO production was driven...[Includes one data table]


September 29, 2017 - Inside Nonconforming Markets

Nonprime Lenders Look to Boost Volume

Originations of nonprime mortgages in 2017 are the strongest they have been since the financial crisis but remain well below levels seen before then. Lenders are looking to lean on loan originators and borrowers in an effort to increase volume. Angel Oak Companies is on track to originate more than $1.1 billion of non-qualified mortgages this year, according to the firm. The nonbank has three lending units that largely focus on nonprime mortgages and the $1.1 billion in production will be a company record. “Clearly, investors, brokers and consumers are...


September 29, 2017 - Inside Nonconforming Markets

Redwood Tweaks New MBS Before Issuance

Redwood Trust made a couple of adjustments to its new jumbo mortgage-backed security between when presale reports were issued and when the deal closed. Among other changes, the size was reduced slightly due to uncertainty about the impact of damage from Hurricane Irma on certain properties. Redwood removed 12 mortgages from the loan pool, dropping the unpaid principal balance of the MBS from $316.49 million to $307.64 million, according to Moody’s Investors Service. Seven loans were dropped...


September 29, 2017 - Inside Nonconforming Markets

Lenders Defend Bank-Statement Mortgages

Nonprime lenders defended mortgages underwritten with borrowers’ bank statements after criticism of the loans by Fitch Ratings. Steven Schwalb, CEO of Angel Oak Home Loans, a nonprime lender that offers bank-statement mortgages, noted that the loans measure borrowers’ cash flow more precisely than the tax returns used for traditional income verification. “We’re comfortable with the risk of that borrower,” he added, during a panel discussion at the ABS East conference produced by Information Management Network last week in Miami Beach. Bank-statement mortgages account...


September 29, 2017 - Inside Nonconforming Markets

ARM Originations Up Sharply in Second Quarter

Originations of adjustable-rate mortgages increased by 40.5 percent from the first quarter of 2017 to the second, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $59.0 billion of ARMs were originated in the April-June cycle, with a number of major banks and nonbanks posting solid gains. Chase was...[Includes one data table]


September 29, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Issuance Expected To Grow, Redwood Volume Has Doubled

Demand in the secondary market for credit risk could help increase issuance of prime non-agency mortgage-backed securities, according to industry analysts. A significant number of investors at the ABS East conference last week said deals across the MBS and ABS markets have been oversubscribed, with the supply of new issuance in recent months seen as insufficient. The conference was produced by Information Management Network in Miami Beach. Peter Sack, a managing director at Credit Suisse, said...


September 29, 2017 - IMFnews

What We’re Hearing: Sen. Warren Pens a GSE Letter to Mnuchin and Watt / Not a Fan of ‘Recap & Release’ / The Trump Administration Worries About FHA / More Ocwen Settlements / Growth Companies: CALCAP and FCI Lender Systems

For several months now we’ve been hearing reports that the Trump administration has grave concerns about the FHA program...


September 29, 2017 - IMFnews

DBRS Tops in Non-Agency MBS Ratings In First Half of 2017, S&P Reigns in ABS

S&P rated $69.54 billion of ABS issued in the first half of the year, roughly 60.1 percent of total issuance by dollar volume.


September 29, 2017 - IMFnews

It Finally Looks Like Mortgage Underwriting Standards are Easing

The easing of underwriting standards was most dramatic for loans eligible for sale to Fannie Mae and Freddie Mac…


September 28, 2017 - IMFnews

Second-Lien Production Up 16 Percent in 2Q17, but Outstandings Decline

In the second quarter, the top three HEL originators were Bank of America, Chase and Wells Fargo, according to a new ranking from Inside Mortgage Finance…


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

vote to see results