Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

May 26, 2017 - IMFnews

What We’re Hearing: Don’t Bet on Court Outcomes / Randy May Want to Wait on the Curtains / No President, No Cry / About that $627 Million… / What About a Partial Capital Cushion for the GSEs? / A Busy Week for Incenter, Phoenix

If Trump is successful, presumably the money would flow through to the bottom line of Fannie and Freddie and counted toward earnings.


May 26, 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.


May 26, 2017 - Inside Nonconforming Markets

News Briefs

Credit Suisse is preparing to issue a $91.18 million non-agency mortgage-backed security backed by seasoned FHA mortgages, according to a presale report by Moody’s Investors Service. CSMC Trust, Series 2017-FHA1 received a preliminary A1 rating. Credit Suisse was a major issuer of post-crisis jumbo MBS but hasn’t issued a jumbo MBS since the fourth quarter of 2015. Fitch Ratings completed a review this week of 63 non-agency MBS backed by post-crisis originations ...


May 26, 2017 - Inside Nonconforming Markets

Subprime Servicing and Disclosures Decline

Data regarding subprime mortgages outstanding, delinquencies and loss mitigation activity are getting more difficult to track as the market has essentially been in runoff mode since 2009.Few servicers report on their subprime portfolios, a key delinquency data series was recently discontinued and details on loan modifications are lagging. Some $247.0 billion of subprime mortgages were outstanding as of the end of the first quarter of 2017 ... [Includes one data chart]


May 26, 2017 - Inside Nonconforming Markets

Wall Street, Banks Differ on QM Standard

Participants in the non-agency mortgage-backed security market and banks have proposed different ways of how to address debt-to-income ratio standards for qualified mortgages. The Structured Finance Industry Group wants the Consumer Financial Protection Bureau to consider speeding the timeline for ending the so-called QM patch, while the American Bankers Association seeks a permanent fix for the DTI issue. The debate centers on the 43.0 percent DTI ratio standard for QMs ...


May 26, 2017 - Inside Nonconforming Markets

Five Oaks Providing Rep Backstop on Jumbos

Five Oaks Investment shut down its jumbo conduit operations but is still involved in the sector by providing a backstop to representations and warranties on jumbos originated by other lenders. The real estate investment trust is backstopping reps and warrants for mortgages sold on a loan exchange operated by MAXEX. “In July 2016, the company announced that it would no longer aggregate and securitize residential mortgage loans; however, given Five Oaks Acquisition ...


May 26, 2017 - Inside Nonconforming Markets

Chase Set to Issue Another Large Non-Agency MBS

JPMorgan Chase is preparing to issue a $1.02 billion non-agency mortgage-backed security with jumbo mortgages along with loans eligible for sale to the government-sponsored enterprises. JPMorgan Mortgage Trust 2017-2 received preliminary AAA ratings last week from Kroll Bond Rating Agency and Moody’s Investors Service. The deal will be the second-largest non-agency MBS backed by post-crisis originations, topped only by the $1.03 billion security Chase issued in ...


May 26, 2017 - Inside Nonconforming Markets

Jumbo Servicing Increases, Delinquencies Down

Large servicers of jumbo mortgages continued to increase their holdings in the first quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. And delinquency performance improved on already low levels. The unpaid principal balance of jumbo mortgages serviced by a group of 30 companies hit $935.70 billion at the end of the first quarter of 2017, up 1.6 percent from the previous quarter and up 8.4 percent ... [Includes one data chart]


May 26, 2017 - Inside Nonconforming Markets

Wells Fargo Plans to Issue Non-Agency MBS, Likely Backed by New Jumbos

Wells Fargo is planning to issue non-agency mortgage-backed securities backed by new originations this year, according to an official at the bank. The company was one of the top issuers of non-agency MBS before the financial crisis, but like most big banks, Wells has opted to retain its jumbo production in portfolio. “This year, one of our aspirations is to come back to the market with a couple of deals,” said Franklin Codel, senior executive vice president of consumer lending ...


May 26, 2017 - IMFnews

CFPB to Assess Effectiveness of the ATR/QM Rule

To assess the effectiveness of the rule in meeting the agency’s goals, the CFPB will examine the impact of major provisions of the measure on a set of consumer outcomes, including mortgage costs…


May 26, 2017 - IMFnews

A Unique Deal from Credit Suisse: A Non-Agency MBS Backed by Seasoned FHA Mortgages

Credit Suisse was a major issuer of post-crisis jumbo MBS, but hasn’t come to market with a jumbo deal since the fourth quarter of 2015.


May 25, 2017 - IMFnews

New Product Watch: Guild’s 1% Downpayment Loan; Stearns Pushes Temporary Rate Buydown

Stearns said that temporary interest rate buy-downs are good for borrowers who expect their incomes to increase in the relatively near future.


May 25, 2017 - IMFnews

Nonprime Lender Citadel Ready to Enter the Small-Balance Commercial Market

Citadel’s small-balance commercial program will include mixed-use retail and other loan types.


May 19, 2017 - IMFnews

What We’re Hearing: Let the M&A Party Begin? / Stocks Long Overdue for a Sell Off? / Walter's Tony Renzi Earns his Paycheck? / Caliber and Citadel Promote Non-QM Loans / A New Hire for Amherst

But can Walter/Ditech grow its lending business in a highly competitive market?


May 18, 2017 - IMFnews

All Major Loan Categories Saw Big Drops in 1Q17 Originations; GSE Market Hurt the Most

The nonprime residential market is getting more attention as the big product categories hit the skids.


May 18, 2017 - IMFnews

JPM Packages Jumbos and GSE-Eligible Loans Into a $1.02 Billion Non-Agency MBS

The MBS collateral includes mortgages from several originators, led by wholesaler United Shore Financial Services…


May 17, 2017 - IMFnews

Going, Going and Soon to be Gone: ‘Distressed’ Housing Units?

Deutsche noted that after years of a steady broad-based housing market recovery “investors are now facing severe shortages in distressed housing pipelines.”


May 17, 2017 - IMFnews

Redwood’s ‘Expanded Prime’ Program Making Inroads

Redwood generally prefers to have multiple execution options. The company is considering issuing MBS backed solely by Choice mortgages.


May 17, 2017 - IMFnews

Deephaven CEO: Secondary Market Demand is Strong for Non-QMs

Performance of non-QM loans has been strong, buoyed by good house-price appreciation and the fact there have been no lawsuits based on the ability-to-repay rule.


May 16, 2017 - IMFnews

JPM to End a Two-Month Drought in Issuance of Prime Non-Agency MBS

The size of the pending jumbo deal from JPM has not been disclosed yet, but AMC, Clayton and Opus are working on reviews...


May 15, 2017 - IMFnews

Jumbo Lending Down 29 Percent in 1Q17: JPM Tops the List…

JPMorgan Chase ranked first in the jumbo production with $10.89 billion…


May 12, 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.


May 12, 2017 - Inside Nonconforming Markets

News Briefs

Wells Fargo is planning to issue non-agency mortgage-backed securities this year, Franklin Codel, a senior executive vice president of consumer lending at the bank, said during an investor presentation this week. It will be the first post-crisis non-agency MBS from Wells. He said the deals will help test whether Wells can improve investor confidence in non-agency MBS. Ellington Financial plans to issue a non-agency mortgage-backed security backed by ... [Includes four briefs]


May 12, 2017 - Inside Nonconforming Markets

House Committee Approves CHOICE Act

The Republican effort to reform many aspects of the Dodd-Frank Act was approved by the House Financial Services Committee last week on a party-line vote. The Financial CHOICE Act will likely be approved by the full House at some point, but DFA reform doesn’t appear to be a priority in the Senate. The House panel approved H.R. 10, the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act, on a 34-26 vote after a three-day markup ...


May 12, 2017 - Inside Nonconforming Markets

GSEs’ Nonprime Holdings Gradually Decline

Nonprime mortgages held by the government-sponsored enterprises continued a gradual decline in the first quarter of 2017, according to an analysis by Inside Nonconforming Markets. Fannie Mae and Freddie Mac held nonprime mortgages with a total unpaid principal balance of $133.89 billion at the end of the quarter, down 5.3 percent from the end of 2016 and down 22.1 percent from the first quarter of last year. The holdings are largely ... [Includes one data chart]


May 12, 2017 - Inside Nonconforming Markets

Ocwen Turns to New Residential for Stability

Ocwen Financial announced last week that it’s negotiating an agreement with New Residential Investment involving mortgage servicing rights for non-agency mortgages. The agreement would reduce the servicing fee Ocwen receives but provide the company some stability and an equity investment. Before the agreement, New Residential owned rights to MSR on mortgages serviced by Ocwen with an unpaid principal balance of $117.0 billion. The loans are in non-agency ...


May 12, 2017 - Inside Nonconforming Markets

Non-QM, S&D Markets Strengthening

More buyers and sellers are getting into the whole-loan market for non-jumbo loans, especially nonprime mortgages, industry experts said. That’s especially true for loans that don’t meet the qualified-mortgage standard, said Matthew Nichols, CEO and founder, Deephaven Mortgage, during a panel session at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Three keys spurred the market last year, he explained. First, performance of ...


May 12, 2017 - Inside Nonconforming Markets

Strong Demand for Large Nonprime MBS

Investors showed strong appetite for the largest non-agency mortgage-backed security backed by post-crisis nonprime originations. The $402.65 million COLT 2017-1 priced at tighter yields than any other post-crisis rated nonprime MBS amid stronger demand for mortgage credit, according to analysts at Deutsche Bank Securities. The deal from an affiliate of Lone Star Funds priced near the end of April and closed last week. “The transaction was priced at the tightest level ...


May 12, 2017 - Inside Nonconforming Markets

Impac Putting Emphasis on Non-QMs, MBS

Impac Mortgage Holdings has significantly increased its originations of non-qualified mortgages and plans to package the loans into non-agency mortgage-backed securities. The nonbank originated $184.3 million of non-QMs in the first quarter of 2017, up from $86.3 million in the previous period. In all of 2016, Impac originated $289.6 million in non-QMs. The product accounted for 11.6 percent of Impac’s originations in the first quarter, up from a 2.8 percent share the previous period ...


May 12, 2017 - Inside Nonconforming Markets

Redwood’s Profit Up on Strong Demand for Jumbos

Redwood Trust posted $37.0 million of net income in the first quarter of 2017, up 45.8 percent from the previous quarter and more than double the net income the real estate investment trust reported for the first quarter of 2016. Income from Redwood’s mortgage-banking activities was boosted by higher loan purchase volume and strong demand in the secondary market for jumbo mortgages. Redwood purchased jumbo mortgages with a total unpaid principal balance of ...


May 12, 2017 - IMFnews

What We’re Hearing: Mel Watt: Not on My Watch / Sen. Corker’s $10B Experiment with the People’s Money / Sen. Elizabeth Warren, Arrogant? / Will Pershing Square and Fairholme Win the Bet? / Wells Fargo Readies Jumbo MBS / Ocwen Needs More Time

Several trade groups, investors and analysts quickly issued their take on Watt’s comments, but there were some notables missing in action: Pershing Square and Fairholme.


May 12, 2017 - Inside Nonconforming Markets

Jumbo Lending Fell 29% in Early 2017, Refinance Slowdown a Factor

Originations of non-agency jumbo mortgages in the first quarter of 2017 were down by 29.0 percent from the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. A decline in refinance activity contributed to the sharp drop in jumbo funding. An estimated $71.00 billion of non-agency jumbos were originated during the quarter. Not only did volume fall significantly from the fourth quarter of 2016, production was ... [Includes one data chart]


May 12, 2017 - IMFnews

Investors Salivate at the Largest Nonprime MBS Since the Financial Crisis

The Lone Star MBS received AAA ratings with credit enhancement of 34.10 percent on the senior tranche.


May 10, 2017 - IMFnews

Short Takes: Nonprime Lender Angel Oak Hires Correspondent Chief from Freedom Mortgage / A Nice Pay Check if you Can Get Fired / Can the Senate Banking Committee Count? / A QM Exemption? / Former MI, GSE Exec Gets Top Post at HUD

PHH's new CEO, Robert Crowl, has a termination package that could be worth $4.54 million…


May 10, 2017 - IMFnews

Originations Down Sharply for Impac in 1Q17, but Firm Remains Profitable; An Emphasis on Non-QM

Impac Mortgage is making major run at the non-QM market, advertising its products on cable TV…


May 10, 2017 - IMFnews

CEO of Finance of America’s ‘Fix & Flip’ Unit Departs a Few Months After Company is Bought

The fix-and-flip market has been red hot the past few years…


May 9, 2017 - IMFnews

SEC Launches Probe into ‘Certain’ Single-Family Rental Securitizations

A Radian spokeswoman said the investigation “does not appear to be specific” to Green River Capital…


May 8, 2017 - IMFnews

As Part of ‘Duty-to-Serve,’ GSEs Release Details on Chattel Pilots

Much of the talk has centered on the GSEs aiding liquidity in the manufactured housing market...


May 5, 2017 - IMFnews

A Bull Market for Newly Originated Nonprime Whole Loans?

One fact seems certain: there are more purchasers for non-agency/nonprime loans than a year ago with a handful of foreign and even U.S. banks contemplating acquisitions…


May 4, 2017 - IMFnews

House Financial Services Panel Passes Hensarling’s CHOICE Act

Democrats unsuccessfully pushed amendments that would try to keep President Trump, anyone in his administration or any of his businesses from benefitting from any provision in H.R. 10.


May 3, 2017 - IMFnews

Short Takes: Mnuchin to the GSEs: Keep Those Checks Coming / Speculation on a Payment Change / Ocwen Makes Some Headway / 735,000 Loan Mods and Counting / First Mr. Cooper, Now Morty

Perhaps the new Treasury secretary finally looked at the numbers, realizing that Fannie and Freddie – wards of the government since September 2008 – forked over roughly $20 billion to Uncle Sam…


May 3, 2017 - IMFnews

Ocwen Reports a $32.6 Million Loss for 1Q17. State Sanction Tally Rises to 31

Ocwen’s management noted there is no guaranty the deal with New Residential will actually close.


May 2, 2017 - IMFnews

Short Takes: Mr. Who? / What were the Other Choices? / Cerberus Readies MBS Backed by Seasoned Loans / What Works Best for Freddie’s Profits / Help Wanted: Idaho Mortgage Banker

If Mr. Cooper was the first choice, what were the others?


May 2, 2017 - IMFnews

Nonprime Lender Deephaven Passes the $1.0 Billion Mark in Loan Acquisitions

Deephaven CEO Matt Nichols is a former managing director at Goldman Sachs & Co.


May 2, 2017 - IMFnews

Impact Unclear in Miami-Predatory Lending Supreme Court Case

Some analysts believe the Supreme Court’s ruling will result in the filing of new claims, but the Buckley Sandler law firm sees it differently...


May 1, 2017 - IMFnews

Short Takes: A REIT in Love with MSRs / No. 2? / The Fortress Connection for New Rez and Nationstar / Phoenix Selling Whole Loans / Kaplan Departs Ranieri Companies

At this pace, you can expect that by yearend New Rez will be the nation’s second largest servicer, at least in terms of ownership rights…


May 1, 2017 - IMFnews

CFPB Warns of ATR Issue with Non-QMs

The regulator cautioned that a large downpayment alone isn’t sufficient to prove a borrower’s ability to repay a non-QM that is based on the consumer’s assets.


May 1, 2017 - IMFnews

Proposed Changes from S&P to Non-Agency MBS Rating Criteria Would Favor Prime Mortgages

S&P said the revisions are intended to better reflect the evolution of the U.S. residential mortgage market over the past several years…


May 1, 2017 - IMFnews

Jumbo Originations Down Sharply in 1Q17, but Lenders Remain Optimistic

While jumbo production fell on a sequential basis, many lenders saw a gain when compared to the same quarter a year earlier…


April 28, 2017 - IMFnews

Ocwen in Negotiations to Sell Large Block of Servicing to New Residential

The transaction was mentioned during New Residential’s earnings call Monday morning and confirmed by a source...


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