Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

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 ...


December 8, 2017 - Inside Nonconforming Markets

Regulatory Reform Efforts Making Progress

Regulatory reform legislation with limited bipartisan support is making its way through the Senate, and a change in leadership at the Consumer Financial Protection Bureau could provide further relief for the industry. This week, the Senate Committee on Banking, Housing and Urban Affairs approved a regulatory reform bill on a 16-7 vote. S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, would make adjustments to the standards for qualified mortgages ...


December 8, 2017 - Inside Nonconforming Markets

Subprime Delinquency Rate Jumps in 3Q17

Delinquency rates on subprime mortgages increased in the third quarter after showing strong improvement earlier in the year. As of the end of September, the subprime delinquency rate was 18.61 percent, according to Black Knight. The rate increased from 16.80 percent in June. As with overall mortgage performance, hurricanes had an impact on subprime delinquencies. And while delinquencies increased, they’re below the 19.03 percent level at ... [Includes one data chart]


December 8, 2017 - Inside Nonconforming Markets

Conforming Loan Limit Increasing in 2018

The conforming loan limit will increase again in 2018, prompting some pushback from supporters of the non-agency market. The conforming loan limit for one-unit properties in 2018 will be $453,100, up 6.8 percent from the current limit. For high-cost areas, the loan limit will be as high as $679,650 in 2018, up from $636,150 this year. The limits apply to acquisitions of mortgages by Fannie Mae and Freddie Mac, and annual adjustments are based on a house-price index ...


December 8, 2017 - Inside Nonconforming Markets

Redwood Set to Fund Lending by Other Nonbanks

Redwood Trust is looking to expand its footprint into funding originations by nonbanks as well as putting a greater emphasis on acquiring investment-property mortgages. The strategy announced this week was detailed one day after Redwood revealed that its CEO will retire in May. Officials said changes in the housing market have created opportunities for the real estate investment trust to “leverage our competitive strengths and expand our strategic mission.” They said funding ...


December 8, 2017 - Inside Nonconforming Markets

Jumbo Delinquency Rate Rose in 3Q17, But Sector in Line with Overall Market

After declining for two consecutive quarters, the delinquency rate on jumbo mortgages increased in the third quarter of 2017, according to Black Knight. Hurricanes contributed to the uptick in delinquencies, and performance in the jumbo market remains strong overall. The delinquency rate on non-agency jumbo mortgages was 1.60 percent as of the end of September, according to Black Knight. That was up from 1.49 percent in the previous quarter ... [Includes one data chart]


December 7, 2017 - IMFnews

Walter’s New CFO, a Former JPM Executive, Could Earn Almost $1 Million Next Year

Lombardo joins Walter, the parent of Ditech Financial, from the community banking division of JPMorgan Chase.


December 6, 2017 - IMFnews

Short Takes: DoubleLine Eyeing Non-QM Sector / Connecticut Lender Attempts ‘12 in 12’ / Sen. Warren Worries about OMB Staffers Embedded at CFPB / English Gets to Keep Her Regular Job, for Now / A Promotion at LoanLogics

Sen. Elizabeth Warren wants a complete list of OMB staffers who have been detailed to the CFPB by Mulvaney...


December 6, 2017 - IMFnews

Redwood Unveils Expansion Plans: Funding Nonbanks and Lending on Investment Properties

Redwood: “We will offer new ways for these [nonbank] sellers to optimize their capital bases…”


December 5, 2017 - IMFnews

Ocwen, Nationstar Reach Separate Settlements on Various Servicing-Related Issues

But news of the settlements wasn’t doing much for their stock prices. Both were down slightly on the day.


December 5, 2017 - IMFnews

The Nonprime Revival Continues: MBS Issuance Could Triple in 2018

The issuance figures suggest that investors are gaining comfort with the non-QM asset class…


December 4, 2017 - IMFnews

A Wide Variety in Securitizations of MSR Assets

Ocwen Asset Servicing Income Series 2014-1 was secured by MSR related to $11.80 billion of mortgages serviced for Freddie Mac.


December 4, 2017 - IMFnews

Short Takes: Atlanta’s Mayor Wants Fannie Chairman Perry to Resign / Arch’s Chief Economist: Housing Relief for Seattle, Looser Credit / LendingHome Hits $2B Mark / Senators Make Threats Regarding English / A Promotion at LoanLogics

Nine senators said they would work to invalidate any new rules issued by the CFPB if Leandra English prevails in her attempts to unseat and replace the bureau’s acting director, Mick Mulvaney...


December 4, 2017 - IMFnews

Redwood Trust CEO Marty Hughes to Retire Next Spring, Will Remain as an Advisor

According to figures compiled by affiliate Inside Mortgage Finance, Redwood ranked 11th among all non-agency jumbo producers through Sept. 30 with a volume of $2.99 billion.


December 1, 2017 - IMFnews

What We’re Hearing: Yes, There’s a Senate GSE Reform Bill in the Works / Acting Ginnie Mae President Has Some MBS Ideas / How Many Loss Positions are There? / The Mulvaney Effect? / Ranieri will Stick Around

Mick Mulvaney has been in charge of the CFPB all week and we’ve yet to hear one prediction that subprime mortgage lending will revive with a vengeance…


December 1, 2017 - IMFnews

Walter, Parent of Nation’s 11th Largest Servicer, Files Prepackaged Bankruptcy Plan. Share Price Spikes, but…

At press time, Walter’s share price was up 38 percent on the day to $0.52. However, its five-year high is $45.92.


December 1, 2017 - IMFnews

Conforming-Jumbo Market Grew Faster Than Non-Agency Sector in 3Q17

Roughly $119.1 billion of mortgages that exceed the conforming loan limit of $424,100 were produced during the third quarter of 2017…


December 1, 2017 - IMFnews

Bank Holdings of Non-Mortgage ABS Decline Again in 3Q17, Some Institutions Still Buying

Depositories held roughly 16.0 percent of outstanding ABS at the end of the third quarter…


November 29, 2017 - IMFnews

Latest Nonprime MBS from Angel Oak Met with Strong Demand from Investors

The Angel Oak family of companies could originate more than $1.0 billion of non-QMs this year…


November 28, 2017 - IMFnews

Starwood Readies MBS Backed by Non-QMs

Starwood president Jeffrey DiModica said the REIT will hold more than $500 million of non-agency mortgages by yearend...


November 28, 2017 - IMFnews

Jumbo Originations Increased in 3Q17 but Sector Lost Some Market Share

While banks continue to compete for jumbo loans, some have actually tightened underwriting standards…


November 27, 2017 - IMFnews

Short Takes: Don’t Ask Us, Try OMB / English has OMB Roots / Radian Sells Clayton Unit / Subprime Standards Tighten / Guild Expands into North Dakota

Guild Mortgage, San Diego, has expanded its presence in the Midwest...


November 27, 2017 - IMFnews

Impac President William Ashmore Has Left the Building

The lender/servicer is expected to name a successor to Ashmore shortly…


November 27, 2017 - IMFnews

‘Expanded Credit’ Originations Increase Ever so Slightly in 3Q17

Non-QMs account for the bulk of expanded-credit originations, with a 78.0 percent share…


November 24, 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.


November 24, 2017 - Inside Nonconforming Markets

News Briefs

Underwriting standards for subprime mortgages tightened somewhat in the third quarter, according to a survey by the Federal Reserve. One of the four banks surveyed by the Fed reported tightening underwriting standards for subprime mortgages in the third quarter while standards at the other three banks were unchanged compared with the previous quarter. The bankruptcy of the parent company of Ditech Financial is unlikely to have an impact on ... [Includes two briefs]


November 24, 2017 - Inside Nonconforming Markets

Consumer Advocates Criticize FHLBank Financing

Consumer advocates are pushing for changes that could impact the non-agency market, including raising concerns about the use of Federal Home Loan Bank advances and calling for revisions to standards for qualified mortgages. In a letter this month to the Federal Housing Finance Agency, a group of 136 consumer advocates were critical of Starwood Property Trust’s recently disclosed use of FHLBank advances to fund acquisitions of non-QMs. Starwood is a real estate investment ...


November 24, 2017 - Inside Nonconforming Markets

Banc of California Focusing on Jumbo Non-QMs

California is a jumbo mortgage gold mine that’s dominated by banks, giving Banc of California an enviable starting point. BoC is also differentiating itself by focusing on non-qualified mortgages and avoiding the retail channel. BoC contributed $122.9 million of jumbo loans to a new mortgage-backed security from JPMorgan Chase. Selling loans into the securitization market is a significant shift for BoC, which had previously only contributed eight mortgages to a jumbo MBS issued in 2014 ...


November 24, 2017 - Inside Nonconforming Markets

New Nonprime MBS from Angel Oak, Invictus

Issuance of nonprime mortgage-backed securities picked up in November with new deals from Angel Oak Capital Advisors and Invictus Capital Partners. A $210.2 million MBS from Angel Oak is scheduled to close on Nov. 28 and a $253.1 million deal from Invictus closed last week. The deal from Angel Oak is the third nonprime MBS of the year from the firm and follows closely after a nonprime MBS from Deephaven Mortgage where Angel Oak contributed mortgages with an unpaid ...


November 24, 2017 - Inside Nonconforming Markets

Expanded-Credit Production Level in 3Q

Originations of so-called expanded-credit mortgages among a group of 15 lenders were essentially level in the third quarter of 2017 compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. The lenders had a total of $10.61 billion of expanded-credit volume in the third quarter, up 1.7 percent from the previous quarter. Expanded-credit loans include non-qualified mortgages, nonprime mortgages ... [Includes one data chart]


November 24, 2017 - Inside Nonconforming Markets

Chase Brings Variety to its Latest Non-Agency MBS

A new, somewhat atypical, non-agency mortgage-backed security from JPMorgan Chase includes a large share of non-qualified mortgages and no fixed-rate mortgages. JPMorgan Mortgage Trust 2017-5 is a $671.7 million deal that received preliminary AAA ratings last week from Fitch Ratings, Kroll Bond Rating Agency and Moody’s Investors Service. The first four deals from Chase this year largely stuck with QMs and included a fair amount of mortgages eligible for sale to the ...


November 24, 2017 - Inside Nonconforming Markets

Starwood Set to Issue MBS Backed by Non-QMs

Starwood Property Trust plans to issue a non-agency mortgage-backed security with non-qualified mortgages in the first quarter of 2018, according to officials at the real estate investment trust. Starwood only recently started acquiring non-QMs, with help from Federal Home Loan Bank advances. Officials said the company acquired $128.0 million of non-agency mortgages in the third quarter, bringing the REIT’s portfolio of such loans to $419.0 million. Jeffrey DiModica, Starwood’s ...


November 24, 2017 - Inside Nonconforming Markets

Jumbo Originations Increase in 3Q17 but Sector Loses Some Market Share

Originations of jumbo mortgages increased in the third quarter of 2017 compared with the previous period, according to a new ranking and analysis by Inside Nonconforming Markets. But through nine months of the year, production was down compared with 2016 and the sector is losing market share as a handful of major lenders are seeing significant declines in their jumbo production. Demand for jumbo mortgages has declined somewhat, according to lenders ... [Includes one data chart]


November 22, 2017 - IMFnews

Publicly Traded Mortgage Firms Not Exactly Setting the World on Fire

Industry observers contend Ocwen, another money-losing company, would love to find a merger partner, but must first resolve its regulatory problems…


November 17, 2017 - IMFnews

Angel Oak Set to Issue its Third Nonprime MBS of the Year; Bank-Statement Loans 35 Percent of the Collateral

Self-employed borrowers whose incomes were determined with bank statements account for 35.0 percent of the collateral.


November 17, 2017 - IMFnews

Mortgage REITs Boost Residential MBS Holdings in 3Q17

MBS-investing REITs boosted their holdings by 10.1 percent on a sequential basis…


November 16, 2017 - IMFnews

Lenders Start Your Engines: Texas Loosens Home-Equity Regulations

The proposition revises the strict fee limits that Texas places on home-equity lines…


November 15, 2017 - IMFnews

Chase to Include a Large Amount of Non-QMs in its Latest Jumbo MBS

The new MBS from JPM concentrates on jumbo mortgages. The average loan balance is $952,747.


November 14, 2017 - IMFnews

HMDA Analysis: Higher-Priced Lending Spikes

Some $28.61 billion of non-government-insured higher-priced mortgages were originated in 2016, up 28.9 percent from the previous year…


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%