Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

September 22, 2017 - IMFnews

ATTOM: Home ‘Flips’ Decline – Along with Profits

ATTOM’s Daren Blomquist: “In markets where distressed discounts have largely dried up, flippers are showing more willingness to leverage financing when acquiring properties…”


September 22, 2017 - IMFnews

Non-Agency MBS Issuance Constrained by a Lack of Supply

Matt Nichols, CEO of Deephaven Mortgage, a company that has issued nonprime MBS in recent years, said the main impediment to nonprime MBS is supply.


September 20, 2017 - IMFnews

Liquidity in the MBS and ABS Markets: As Strong as It’s Ever Been…

“Liquidity is strong across the spectrum and probably the best we’ve ever seen for structured products,” said Scott Levy, a senior managing director at Guggenheim Securities…


September 20, 2017 - IMFnews

Walter Gets $300 Million Increase in Financing from Barclays; Stock Spikes

News of the expanded repo line sent Walter's share price soaring...


September 19, 2017 - IMFnews

Caliber Ramps Up Non-QM Lending Big Time

Caliber plans to originate at least $1 billion of non-QM residential loans this year…


September 15, 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 15, 2017 - Inside Nonconforming Markets

News Briefs

The Milken Institute – a nonpartisan think tank – established a new policy team last week to work on issues involving housing finance reform. Eric Kaplan was named director of Milken’s Housing Finance Program. He was a managing partner at Ranieri Strategies and continues to chair the Structured Finance Industry Group’s RMBS 3.0 effort. Michael Milken and Lewis Ranieri will co-chair a new Housing Advisory Council, which will inform the work of the team led by Kaplan ... [Includes two briefs]


September 15, 2017 - Inside Nonconforming Markets

Blackstone to Issue Reverse Mortgage Jumbo MBS

An affiliate of Blackstone is preparing to issue a rare non-agency mortgage-backed security backed by jumbo reverse mortgages, according to filings with the Securities and Exchange Commission. A handful of non-agency MBS backed by jumbo reverse mortgages were issued before the financial crisis and none appear to have been issued in recent years. Blackstone’s Podium Mortgage Capital hired Clayton to perform due diligence on 280 jumbo reverse mortgages. The loans were ...


September 15, 2017 - Inside Nonconforming Markets

Non-Agency MBS Issuers Address Hurricane Risk

Three non-agency mortgage-backed securities issuers were preparing to issue deals around the time that Hurricane Harvey hit the Gulf Coast and Hurricane Irma made landfall in Florida. Deals from the issuers include mortgages on properties in the disaster areas, prompting inspections and an emphasis on the representations and warranties included with the MBS. An affiliate of Shellpoint Partners is set to issue a $323.38 million deal on Sept. 29. According to Kroll Bond Rating Agency ...


September 15, 2017 - Inside Nonconforming Markets

Shellpoint Packages More BofA Jumbos into MBS

An affiliate of Shellpoint Partners is preparing to issue another jumbo mortgage-backed security backed largely by mortgages aggregated by Bank of America. The planned Shellpoint Co-Originator Trust 2017-2 is a $323.38 million deal that received preliminary AAA ratings this week. Nearly all of the mortgages were aggregated by BofA through its jumbo whole-loan purchase program and sold to Shellpoint in bulk deals. Loans from 17 lenders will be included in the pool, led by ...


September 15, 2017 - Inside Nonconforming Markets

Slight Shift in Retail Share for Jumbo Lenders

The retail channel dominates production among prominent jumbo lenders and gained some market share through two quarters this year, according to a new analysis by Inside Nonconforming Markets. The retail channel accounted for 77.5 percent of jumbo originations among a group of lenders that had a total of $108.00 billion in jumbo volume in the first half of 2017. The retail share was 76.6 percent over the same period in 2016. The correspondent ... [Includes one data chart]


September 15, 2017 - Inside Nonconforming Markets

Caliber Ramps Up Non-QM Originations, MBS

Caliber Home Loans is on track to nearly double its originations of non-qualified mortgages this year and will supply the collateral for a forthcoming mortgage-backed security, the largest in the post-crisis era.Caliber plans to originate $1.00 billion of non-QMs this year, up from $539.0 million in 2016, according to DBRS. The nonbank lender has boosted its non-QM production across lending channels, led by wholesale. Caliber had $247.0 million in wholesale non-QM originations ...


September 15, 2017 - Inside Nonconforming Markets

Banks Increase First-Lien Holdings in 2Q

Bank and thrift holdings of first-lien mortgages continued to increase in the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.97 trillion of first-lien mortgages at the end of June. The holdings were up by 1.9 percent from March and up 3.8 percent from a year ago. Trends in portfolio management were somewhat mixed among the top 10 holders of first-lien mortgages. Top-ranked Wells Fargo had ... [Includes one data chart]


September 15, 2017 - Inside Nonconforming Markets

Redwood Brings its First ‘Expanded Prime’ MBS With Higher Credit Enhancement

Redwood Trust is set to issue its first jumbo mortgage-backed security backed predominantly by loans with looser underwriting standards than the super-prime jumbos that have dominated the market. The planned $316.49 million Sequoia Mortgage Trust 2017-CH-1 includes many non-qualified mortgages and other loans that fall outside of Redwood’s traditional Select program. Kroll Bond Rating Agency and Moody’s Investors Service assigned preliminary AAA ratings to the MBS last week ...


September 14, 2017 - IMFnews

Another Bank May Enter the Jumbo MBS Market, Signaling a Potential Shift from Portfolio Retention

“We’ve gotten wind that we could see at least one other large money center bank enter the securitization markets,” said Christopher Abate of Redwood Trust…


September 14, 2017 - IMFnews

Agency-Jumbo Production Sagged in 2Q17 While Non-Agency Sector Kept Growing

But the non-agency jumbo market saw a healthy 18.6 percent increase in originations…


September 14, 2017 - IMFnews

Redwood Sourcing ‘Expanded Prime’ Jumbos from Hundreds of Correspondents

Redwood Trust has approved 185 originators to sell Choice loans directly…


September 12, 2017 - IMFnews

Short Takes: Former DB Exec Paul Mangione Slammed in DOJ Civil Complaint / Fort Schuyler Advisors? / Angel Oak Passes $7B Mark / Richard Cordray? / A New CFO for LenderLive

As IMFnews went to press, Mangione could not be reached for comment. He currently heads Fort Schuyler Advisors...


September 7, 2017 - IMFnews

Short Takes: Wells Fargo and UWM Weigh In on Hurricane Irma / Non-Agency MBS Not Impacted by Harvey / Clayton Rolls out ‘Readiness Solution’ for Nonprime / A Promotion at LendingTree

Meanwhile, United Wholesale Mortgage CEO Mat Ishbia said the nation’s largest wholesaler is not cancelling any closings because of Irma, at least not yet...


September 7, 2017 - IMFnews

It’s Official: Lone Star’s New Security Largest Post-Crisis Nonprime MBS To Date

The new security is backed solely by loans from Caliber...


September 6, 2017 - IMFnews

First ‘Expanded Prime’ MBS from Redwood Shows Somewhat Looser Underwriting than Typical Super-Prime Jumbos

Mortgages from 103 lenders will be included in the deal led by PrimeLending…


September 6, 2017 - IMFnews

Jumbo Servicing Continues to Increase for Most Firms; Performance Pristine

Of the nation's top 10 jumbo servicers, just one is a nonbank: Ocwen Financial.


September 6, 2017 - IMFnews

CFPB’s Cordray to Give Ohio Speech on Date of Gubernatorial Debate. Meaning?

Fun fact: Ocwen is one of the sponsors of the event where CFPB Director Richard Cordray will be speaking…


September 5, 2017 - IMFnews

Lone Star Preps Nonprime MBS that Could be the Largest Issued with Post-Crisis Originations

The nonprime mortgages were sourced through Lone Star affiliate Caliber Home Loans and other lenders…


September 5, 2017 - IMFnews

Non-QM Performance Strong but There’s a Catch: Many Prepayments

Investors in non-QM MBS have to worry about fast prepayment speeds, not credit problems...


September 1, 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 1, 2017 - Inside Nonconforming Markets

News Briefs

Redwood Trust is preparing to issue its first non-agency mortgage-backed security backed by “expanded prime” mortgages. In the second quarter, Redwood acquired approximately $240.0 million of such mortgages, which have somewhat looser underwriting standards than what’s typically seen in the jumbo MBS market. Clayton Holdings reviewed 417 mortgages for the planned issuance, according to documents filed Aug. 30 with the Securities and Exchange Commission. The total unpaid principal balance of the loans wasn’t disclosed. The deal will include...


September 1, 2017 - Inside Nonconforming Markets

GSEs Shed More Nonprime Holdings in 2Q

The government-sponsored enterprises’ holdings of vintage nonprime mortgages declined somewhat more quickly than usual in the second quarter of 2017, according to an analysis by Inside Nonconforming Markets. Fannie Mae and Freddie Mac held a combined $123.73 billion of nonprime purchased/guaranteed mortgages and mortgage-backed securities at the end of June, down 7.6 percent from March. Compared with June 2016, their holdings were down by 23.2 percent. The GSEs’ nonprime holdings are...[Includes one data table]


September 1, 2017 - Inside Nonconforming Markets

Alternative to Traditional Mortgage Proposed

The 30-year fixed-rate mortgage is due for an overhaul, according to a proposal published by the Federal Reserve. Members of the Fed’s research staff suggest that banks should offer a type of mortgage with no downpayment requirements that essentially automatically refinances. Wayne Passmore, senior adviser in the Fed’s division of research and statistics, and Alexander von Hafften, a senior research assistant in the division, authored a working paper published by the Fed last week. Passmore and von Hafften cited...


September 1, 2017 - Inside Nonconforming Markets

Subprime Servicing Dwindles, Delinquencies Linger

New nonprime originations haven’t been enough to prop up the volume of subprime mortgages outstanding, according to a new ranking by Inside Nonconforming Markets. The top 15 subprime servicers handled an estimated $212.73 billion of the loans as of the end of the second quarter of 2017, down 4.1 percent from the previous quarter and down 18.2 percent from a year ago. None of the servicers posted...[Includes one data table]


September 1, 2017 - Inside Nonconforming Markets

Bayview Putting Some Non-QMs in MBS

An affiliate of Bayview Asset Management issued a $230.0 million non-agency mortgage-backed security this week largely stocked with seasoned mortgages, including one non-qualified mortgage. DBRS and Fitch Ratings placed AAA ratings on Bayview Mortgage Fund IVc Trust 2017-RT3, without putting much emphasis on the non-QM. Non-QMs had accounted for 2.1 percent of a $125.82 million MBS from Bayview that priced in July and 1.0 percent of a $208.13 million deal it priced in April. The sponsor of the deal will retain...


September 1, 2017 - Inside Nonconforming Markets

Non-QM Performance Strong, Many Prepayments

Delinquencies on non-qualified mortgages have been minimal and many borrowers with the loans seek to refinance relatively quickly, according to an analysis by Wells Fargo Securities. Among non-QMs with at least two years of seasoning that were included in nonprime mortgage-backed securities, more than 97 percent haven’t missed a payment, according to Wells. “Borrower credit performance has been robust so far, with delinquency rates and losses still subdued,” the analysts said. As of the end of July, only one non-QM in a nonprime MBS has gone...


September 1, 2017 - Inside Nonconforming Markets

Jumbo Servicing Continues to Increase for Most Top Servicers, Performance Pristine

The volume of jumbo mortgages handled by the top servicers continued to increase in the second quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 30 companies serviced an estimated $957.50 billion of jumbos at the end of June, up 2.3 percent from the previous quarter and up 8.7 percent from the second quarter of 2016. The servicers outpaced...[Includes one data table]


August 31, 2017 - IMFnews

Redwood Trust Set to Issue its First Non-Agency MBS Backed by ‘Expanded Prime’ Mortgages

The new MBS from Redwood will include a mix of safe-harbor qualified mortgages, rebuttable presumption QMs, non-QMs and some loans not subject to QM standards.


August 30, 2017 - IMFnews

Errors in Moody’s Database Prompt Reassessment of Ratings on Nearly 1,000 Pre-Crisis Non-Agency MBS

Problems regarding the ratings of IO tranches of pre-crisis non-agency MBS emerged in June of this year...


August 29, 2017 - IMFnews

Clayton Launches Service to Help Issuers Enter the Non-Agency MBS Market

A growing number of mortgage lenders and aggregators are actively considering entry into the private label securitization market, says Clayton President Jeff Tennyson…


August 28, 2017 - IMFnews

Bayview Mixes New and Seasoned Loans Together for New Non-Agency MBS

Mortgages in the deal were originated by a variety of lenders, none of which were identified…


August 25, 2017 - IMFnews

Bank ABS Holdings Drift Lower Again in 2Q17

All asset classes in the ABS market saw reduced bank interest in the second quarter…


August 25, 2017 - IMFnews

CFPB Cuts Community Lenders Some HMDA Slack for HELOCs

The CFPB is loosening regulations amid rumors that agency Director Richard Cordray may soon depart to run for governor of Ohio…


August 24, 2017 - IMFnews

Wedbush: Expanded Credit Could Add $200 Billion of Originations

Publicly traded lenders that could benefit from the trend include First Republic Bank, Flagstar Bank, Nationstar Mortgage and U.S. Bank…


August 23, 2017 - IMFnews

Despite Coming Ban, Starwood REIT to Buy Non-QMs with FHLBank Help

Starwood didn’t disclose the volume of non-QMs it has acquired at this point.


August 22, 2017 - IMFnews

Short Takes: loanDepot’s Hsieh has Some Fun / Fannie’s Forecast / Finance of America Ramps Up Reverses / Jumbo Credit Standards Loosened, Somewhat / New Regional Hires for Silver Hill

No update from loanDepot on the IPO, but CEO Anthony Hsieh took some shots at the rumor mill...


August 22, 2017 - IMFnews

Ellington Financial Sells $86 Million Worth of Notes

Ellington is showing an increasing interest in the non-QM market…


August 22, 2017 - IMFnews

Watchdog Group Seeks Answers from CFPB About Clayton Homes’ Lending Practices

Clayton Homes is one of the nation’s largest mobile home sellers, and is owned by Warren Buffett’s Berkshire Hathaway.


August 22, 2017 - IMFnews

OCC Sets Process for Banks to Originate Mortgages with LTV Ratios Greater than 100 Percent

The OCC noted that Fannie Mae, Freddie Mac and the FHA all offer loan options aimed at property rehabilitation…


August 22, 2017 - IMFnews

Jumbo Lending Increased in 2Q17, but Volume Lagging Last Year’s Pace

Wells Fargo regained the title of the top non-agency jumbo lender in the second quarter, besting Chase…


August 21, 2017 - IMFnews

Deephaven Mortgage Managing Director Brett Hively Departs; Former Quicken Executive His Replacement

Hively’s resume includes stints at Goldman Sachs (where Nichols also worked), New Century Mortgage Co., and Option One Mortgage.


August 21, 2017 - IMFnews

A New Tally: Nonconforming Originations Hit $7 Billion in 2Q17

Our ranking of the nonconforming sector is divided among lenders that specialize in the products and those where it accounts for a small slice of production.


August 18, 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.


August 18, 2017 - Inside Nonconforming Markets

News Briefs

Citadel Servicing Corp. recently launched a one-month bank-statement program for self-employed borrowers. While some lenders offer bank-statement programs, borrowers are typically required to provide at least one year of documentation. Citadel stressed that deposits into the borrower’s bank account aren’t the determinant figure to verify income. “Income is attested to and declared [by the borrower], a Citadel underwriter will confirm that ... [Includes three briefs]


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.

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