Browse articles from all of our Newsletters related to Nonconforming.

July 20, 2017 - IMFnews

Invictus Packages a Variety of Mortgages into Nonprime MBS; Greenbox the Top Contributor

GreenBox was the top contributor to the new nonprime MBS with Sprout Mortgage a close second…

July 19, 2017 - IMFnews

PIMCO: Non-Agency Changes Needed Before GSE Reform

Over the past two years PIMCO has been a major buyer of nonprime/non-QM whole loans in the secondary market…

July 19, 2017 - IMFnews

Bank Mortgage Repurchases Trend Lower

Bank of America once again reported the biggest volume of residential loan repurchases: $421 million…

July 18, 2017 - IMFnews

Walter’s Warehouse Lenders Show Patience – but for How Long?

In late May, Walter disclosed in an SEC filing that some of its previously issued financial statements could not be relied upon because of what it called an “accounting error.”

July 18, 2017 - IMFnews

Flagstar Bancorp to Issue its First Post-Crisis Jumbo MBS

All of the mortgages Clayton reviewed for the MBS are safe harbor qualified mortgages.

July 17, 2017 - IMFnews

CFPB Cuts ‘Smallish’ Lenders Some HMDA Slack (Temporarily)

Under the proposal, the CFPB would increase that threshold to 500 loans through calendar years 2018 and 2019…

July 14, 2017 - IMFnews

Invictus Capital Partners’ Mortgage Unit Set to Issue Second Nonprime MBS

The Invictus Opportunity Fund recently raised $35.56 million in capital.

July 14, 2017 - IMFnews

Other MBS Trustees May Follow Wells Fargo’s Lead on Withholding Funds

Analysts at Bank of America Merrill Lynch said the action by Wells was “the most talked about topic” among market participants recently.

July 14, 2017 - IMFnews

A Strong Showing for Non-Agency MBS in 2Q17 – Thanks to S&D Deals and Re-securitizations

One of the biggest development this year has been the growing consistency in issuance of nonprime MBS.

July 13, 2017 - IMFnews

Wells Fargo’s Withholding of Funds from Non-Agency MBS Investors Prompts Action from Rating Services

The deals are the subject of a lawsuit filed by MBS investors alleging that Wells Fargo failed to perform its duties as trustee...

July 12, 2017 - IMFnews

Flagstar Gets Rated, a Sign that it May Become More Involved in Jumbo MBS?

Jumbos accounted for 5.6 percent of Flagstar’s residential originations during the period…

July 12, 2017 - IMFnews

Prime Non-Agency MBS Issuance Tumbles a Bit in 2Q17; JPM Leads the Market

Some 15.2 percent of the mortgages in Chase’s second-quarter MBS were eligible for sale to the government-sponsored enterprises.

July 11, 2017 - IMFnews

Latest Non-QM MBS from Angel Oak Sees Strongest Pricing Yet

Since 2015 Angel Oak has issued four MBS totaling $639.92 million…

July 10, 2017 - IMFnews

A Breakout Quarter for Nonprime MBS; $1.08 Billion of Deals in 2Q17

“Rated nonprime non-qualified-mortgage transactions should broaden the investor base,” Deutsche Bank said.

July 7, 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.

July 7, 2017 - Inside Nonconforming Markets

News Briefs

Moody’s Investors Service increased its assessment of Wells Fargo’s jumbo-mortgage property valuation practices from above average to strong. The rating service said the improvement was due to Wells no longer having an ownership interest in one of the appraisal management companies used by the bank. “During the prior review, Wells had an equity interest in an AMC which received approximately 90 percent of the appraisal orders,” Moody’s said ... [Includes two briefs]

July 7, 2017 - Inside Nonconforming Markets

Senator Sees Consensus on Government Guarantee

Efforts in the Senate to reform the government-sponsored enterprises appear likely to include a government guarantee for whatever replaces the current system involving Fannie Mae and Freddie Mac. “It seems to me that the consolidation is coming around the fact that we do need to have an explicit [catastrophic] guarantee,” said Sen. Bob Corker, R-TN. “We need to acknowledge that it’s going to be there.” He made the statement last week at a hearing on housing-finance reform by the ...

July 7, 2017 - Inside Nonconforming Markets

Prepayments on Wells’ Jumbos Relatively High

The prepayment rate on vintage jumbo mortgages serviced by Wells Fargo is outpacing the industry average by a wide margin, according to an analysis by Bank of America Merrill Lynch. A lower level of loan modifications by Wells appears to be driving the trend. BAML noted that prepayment rates on jumbo mortgages in vintage non-agency mortgage-backed securities have followed a stable trend in the last three years. However, since 2013, Wells-serviced jumbo fixed-rate ...

July 7, 2017 - Inside Nonconforming Markets

Ocwen’s Legal Issues Expected to Drag On

A resolution of the charges against Ocwen Financial brought by the Consumer Financial Protection Bureau and state regulators is expected to be “protracted,” according to industry analysts. In April, the CFPB and state regulators took a number of actions against the nonbank, alleging servicing- and lending-related violations. Ocwen is appealing the findings. The legal issues prompted mixed reactions from rating services. Fitch Ratings affirmed its B- issuer-default rating for ...

July 7, 2017 - Inside Nonconforming Markets

Flagstar Receives Lender/Servicer Ratings

Flagstar Bank recently received assessments by Fitch Ratings of the bank’s origination platform and servicing operations. The ratings could signal increased involvement in the jumbo mortgage-backed security market by Flagstar. Fitch assigned an “average” rating to Flagstar’s origination platform. “Notable strengths of Flagstar’s origination platform include its experienced senior management team and staff, robust loan sourcing strategy, and comprehensive underwriting ...

July 7, 2017 - Inside Nonconforming Markets

Angel Oak Issues Its Largest Nonprime MBS

A unit of Angel Oak Companies issued its largest nonprime mortgage-backed security this week. The deal comes shortly after a significant amount of mortgages from Angel Oak were included in a separate nonprime MBS from Deephaven Mortgage. The $210.45 million Angel Oak Mortgage Trust I LLC 2017-2 received AAA ratings from DBRS and S&P Global Ratings. Angel Oak has issued three other nonprime MBS, the largest of which was a $150.35 million transaction in 2015 ...

July 7, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Issuance Down in 2Q

Issuance of prime non-agency mortgage-backed securities cooled off somewhat in the second quarter of 2017 after a relatively strong showing in the previous period. Three deals totaling $1.88 billion were issued in the second quarter, a 27.6 percent drop from the first three months of the year, according to Inside Nonconforming Markets. However, activity in the first half of this year outpaced the first half of 2016, as the dollar volume of issuance was ... [Includes one data chart]

July 7, 2017 - Inside Nonconforming Markets

Nonprime MBS Has Breakout Quarter, Issuance Up Sharply. More Deals Likely

Issuance of nonprime mortgage-backed securities skyrocketed in the second quarter, and analysts anticipate that the market is set for more growth. A total of $1.08 billion of MBS backed by newly originated nonprime mortgages was issued in the second quarter of 2017, according to Inside Nonconforming Markets. It was the strongest post-crisis quarter for the sector, which has been percolating since the second half of 2015. Issuance in the April-June cycle ... [Includes one data chart]

July 7, 2017 - IMFnews

After a Significant Lull, Credit Suisse Returns as a Player in Non-Agency MBS

Quiet no longer in non-agency MBS: Credit Suisse...

July 7, 2017 - IMFnews

MBS/ABS Production Faltered Slightly in 2Q17, but Some Sectors Bucked the Trend

It was the slowest agency refi market since the third quarter of 2014…

July 6, 2017 - IMFnews

Redwood Trust Set to Issue its Fifth Jumbo MBS of the Year

Meanwhile, Redwood is working toward issuing a jumbo MBS from its “expanded prime” program…

July 6, 2017 - IMFnews

Many Non-QM Borrowers Actually Look Eligible for GSE Loans

According to Morningstar Credit Ratings, the weighted-average loan-to-value ratio for securitized non-QMs is 75.2 percent and the average debt-to-income ratio is 36.6 percent

July 5, 2017 - IMFnews

Fitch Updates Residential MBS Criteria on Bondholder Communication

The rating service said investors should have access to the reviewer’s findings or access to other information that would help determine if a breach should be pursued.

June 30, 2017 - IMFnews

What We’re Hearing: Looks Like All Systems Go for GSE Reform (Not Really) / Does Jeb Know? / $2.726 Trillion is a Lot of Subprime Mortgages / An Abrupt Departure at the FHLB Topeka / New Hires for UWM

FUN FACT: Between 2000 and 2007, roughly $2.726 trillion of subprime residential loans were originated nationwide. Last year, just $2.0 billion were funded.

June 30, 2017 - IMFnews

Fitch Edged Out DBRS (Barely) in Rating Non-Agency MBS in 1Q17

Fitch was on top, although both companies had equal shares at 36.5 percent…

June 29, 2017 - IMFnews

Angel Oak Set to Issue its Largest Nonprime MBS Deal to Date

It’s the fourth trip to the nonprime MBS well for Angel Oak…

June 28, 2017 - IMFnews

Credit Suisse Resuming Non-Agency MBS Issuance, Prepares Deal Backed by Re-performers

The firms originating the collateral backing the MBS were not identified.

June 27, 2017 - IMFnews

IO Originations Decline in First Quarter 2017

PHH Mortgage and Chase both played a role in the decline of IO originations.

June 27, 2017 - IMFnews

Mark Filler Racks up $1 Billion from Investors, Has Plans for F&F, Broker Lending and More

Filler was named CEO of Finance of America Commercial, but departed after roughly two months.

June 26, 2017 - IMFnews

Surprise: A Decline in Bank and Thrift Holdings of First Liens

Wells Fargo, which has the largest portfolio of first-lien mortgages, reported a 3.2 percent drop in its holdings, down to $272.72 billion as of the end of the first quarter.

June 23, 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.

June 23, 2017 - Inside Nonconforming Markets

News Briefs

Representations and warranties on new nonprime mortgage-backed securities often include weaknesses that limit their ability to protect investors against fraudulent or defective loans, according to an analysis by Moody’s Investors Service. However, the rating service said current practices and dynamics in the nonprime MBS market help to mitigate the risks from weak reps and warranties. Moody’s hasn’t placed ratings on nonprime MBS backed by ... [Includes four briefs]

June 23, 2017 - Inside Nonconforming Markets

More ‘Alt Doc’ Loans in MBS from Deephaven

The nonprime mortgage-backed security issued by Deephaven Mortgage earlier this month was largely similar to a deal the firm issued in April, save for a greater emphasis on mortgages underwritten with less than full documentation. So-called alternative documentation mortgages accounted for 36.5 percent of the $250.13 million MBS Deephaven issued this month, up from a 17.7 percent share of its $221.14 million issuance in April. Non-agency lenders underwriting mortgages ...

June 23, 2017 - Inside Nonconforming Markets

Fee Structure Key to Adoption of Deal Agent

One of the most significant variables industry participants are working to address in terms of introducing a deal agent into non-agency mortgage-backed securities is the fee structure. Issuers are trying to balance paying for the services provided by a deal agent without diverting too much cash flow from investors in non-agency MBS. The fee structure will also play a key role in how rating services treat MBS that have a deal agent, with issuers looking for favorable treatment ...

June 23, 2017 - Inside Nonconforming Markets

IO Originations Decline in First Quarter

Originations of interest-only mortgages by a group of top lenders declined in the first quarter, according to an analysis by Inside Nonconforming Markets. A group of 12 prominent IO lenders originated $6.81 billion of the loans in the first quarter of 2017. The lenders’ production was down by 26.7 percent from the previous quarter and down by 19.9 percent from the first quarter of 2016. According to Inside Mortgage Finance, total first-lien originations ... [Includes one data chart]

June 23, 2017 - Inside Nonconforming Markets

ARMs Gain Market Share in First Quarter

The adjustable-rate mortgage share of total originations increased in the first quarter of 2017 as some borrowers shifted to the product with interest rates projected to increase. An estimated $42.0 billion of ARMs were originated in the first quarter of 2017, according to Inside Mortgage Finance. While production was down by 23.6 percent from the previous quarter, total first-lien originations declined by 33.6 percent during that time ... [Includes one data chart]

June 23, 2017 - Inside Nonconforming Markets

Trump Admin Seeks to Boost Non-Agency Lending

The Treasury Department last week released a report that called for regulatory reforms aimed to help boost non-agency originations and market share. Many of the reforms relating to the non-agency market could be completed without action from Congress. However, most of them are overseen by the Consumer Financial Protection Bureau, and Treasury’s recommendations appear unlikely to be enacted as long as Richard Cordray is director of the CFPB. Treasury sought input ...

June 23, 2017 - Inside Nonconforming Markets

AIG to Issue Its First Jumbo MBS

Affiliates of American International Group are set to issue their first jumbo mortgage-backed security, according to presale reports released this week. AIG’s residential mortgage lending group has been acquiring jumbos on a correspondent basis since 2013, amassing more than $4.50 billion in holdings. The planned CSMC 2017-HL1 Trust is a $511.98 million securitization of loans acquired from a variety of lenders. The MBS will be issued on a Credit Suisse shelf ...

June 23, 2017 - Inside Nonconforming Markets

Bank Portfolio Holdings Decline in 1Q17 as Jumbo Originations Fall

Bank and thrift holdings of first-lien mortgages took a relatively rare decline in the first quarter of 2017 as jumbo production stalled during the period, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held a total of $1.93 trillion of first-lien residential mortgages in portfolio as of the end of March, down 0.1 percent from December 2016. The holdings have increased relatively steadily in recent years ... [Includes one data chart]

June 23, 2017 - IMFnews

Update: Deal Agent Negotiations for Non-Agency MBS Drag On

Clayton Holdings was the first firm to receive an assessment from rating services as a deal agent…

June 22, 2017 - IMFnews

loanDepot Hires Former Subprime Executive Flanagan to Lead Effort in ‘Proprietary’ Products

Flanagan once headed Cove Financial, which offered a unique rent-to-own product.

June 22, 2017 - IMFnews

Angel Oak Affiliate Prepares its Second Nonprime MBS of the Year

The Atlanta-based Angel Oak hopes to double its sales force this year.

June 22, 2017 - IMFnews

Home Equity Softened in 1Q17, but Growth Prospects Looking Up

Bank of America continued to dominate second lien lending with $4.05 billion of originations during the first quarter of 2017…

June 20, 2017 - IMFnews

AIG Subs Ready First Jumbo MBS Deal. Expected Size: $512 Million

Other contributors to the deal include Stearns Lending, American Pacific Mortgage and Cornerstone Home Lending.

June 19, 2017 - IMFnews

Moody’s Weighs in as Non-Agency MBS Participants Continue to Work on Deal Agent Specifics

Deal agent compensation likely would include additional fees for less common, more intensive work…


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