Nonconforming Securitization

Browse articles from all of our Newsletters related to Nonconforming Securitization.

February 15, 2019 - 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.


February 15, 2019 - Inside Nonconforming Markets

News Briefs

Carrington Mortgage Services has loosened its underwriting guidelines and improved pricing for various expanded-credit products. The maxi-mum debt-to-income ratio for 12-month bank statement mortgages increased from 43% to 50% and reserve requirements reduced for certain products. Home Point Financial started offering expanded-credit mortgages this month. The lender’s “Edge” program includes jumbo mortgages with loan-to-value ... [Includes four briefs]


February 15, 2019 - Inside Nonconforming Markets

Expanded-Credit MBS Issuance on a Roll

Mortgage-backed securities with expanded-credit underwriting standards are flowing into the market. Presale reports were published this week for three deals and others are in the works. The largest of the three deals is a $345.43 million MBS from Deephaven Mortgage. Loans in the deal were sourced from 86 lenders, led by Deephaven with a 15.9% share. Servicing will be handled by Shellpoint Mortgage Servicing. Loans in the deal have an average credit score of 698, an average combined ...


February 15, 2019 - Inside Nonconforming Markets

Non-Agency Pricing for GSE-Eligible Loans in Flux

The pricing offered in the non-agency market for certain loans eligible for sale to the government-sponsored enterprises isn’t as attractive to sellers as it once was, according to industry participants. Kevin Doyle, managing director of whole-loan trading at Cantor Fitzgerald, said last week some sizable pools of GSE-eligible loans didn’t trade in the private market due to pricing. He said it was the first time in a while that GSE-eligible loans put out for bid to non-agency investors failed to trade ...


February 15, 2019 - Inside Nonconforming Markets

Non-QM MBS Issuance, Investing Attractive to REITs

Mortgage-backed securities with non-qualified mortgages look attractive to some real estate investment trusts. PennyMac Mortgage Investment Trust plans to join other REITs issuing non-QM MBS while officials at Chimera Investment said the firm is considering buying non-QM MBS from other issuers. In January, PennyMac Financial Services started a non-QM program through its correspondent originations channel. Stan Kurland, executive chairman of PMIT, a REIT affiliated ...


February 15, 2019 - Inside Nonconforming Markets

Seer Capital Enters Non-QM MBS Market

Seer Capital Management is set to issue its first mortgage-backed security with non-qualified loans. The New York-based company launched its non-QM program in 2013 and it owns HomeXpress Mortgage, a wholesale lender founded in 2016. The investment manager’s Residential Mortgage Loan Trust 2019-1 will be a $227.11 million issuance, according to presale reports published this week. HomeXpress will be the top contributor to the deal, accounting for 57.9% of the issuance ...


February 15, 2019 - Inside Nonconforming Markets

Hopes Dim for Lower Loan Limit Mandate from Senate

A leading Republican in the Senate plans to leave loan limit decisions in the hands of the Federal Housing Finance Agency instead of mandating lower conforming loans limits as part of housing-finance reform legislation. Sen. Mike Crapo, R-ID, chairman of the Senate Committee on Banking, Housing and Urban Affairs, released an outline for reform legislation at the start of February. It calls for replacing the current guarantee functions of Fannie Mae and Freddie Mac with ...


February 15, 2019 - Inside Nonconforming Markets

Redwood Maintains Margins With Multiple Loan Outlets

Redwood Trust’s mortgage banking income in the fourth quarter was essentially level compared to the previous quarter even with lower origination volume and strong competition in the non-agency market. Officials said margins held up because the real estate investment trust had multiple outlets to sell loans. Redwood’s mortgage banking segment generated $9.09 million of income in the final quarter of 2018, down 3.9% on sequential basis. “Our ability to utilize both ...


February 15, 2019 - Inside Nonconforming Markets

Jumbo Lending Falls in 4Q On Weaker Demand

Originations of non-agency jumbo mortgages declined in the fourth quarter as well as full year 2018, according to an Inside Nonconforming Markets analysis. The sector also lost market share with lenders noting weak demand. Some $65.0 billion of jumbos were originated in the fourth quarter, down 14.5% on a sequential basis. Full-year jumbo production declined 12.2% to $281.0 billion. Jumbos accounted for 17.2% of total first-lien originations ... [Includes one data chart]


February 11, 2019 - Inside the CFPB

CFPB Urged to Oppose Higher Appraisal Threshold

Consumer groups have called on the CFPB to oppose a regulatory proposal which will significantly expand the number of non-agency mortgages that will not need a full appraisal.


February 8, 2019 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: February 8, 2019

MBS and ABS Issuance at a Glance


February 1, 2019 - Inside Nonconforming Markets

News Briefs

Seer Capital Management; Angel Oak Companies


February 1, 2019 - Inside Nonconforming Markets

Non-Agency Market Could See Gains from GSE Reform

Activity in the non-agency mortgage market is likely to get a boost from any reforms of the government-sponsored enterprises undertaken by the Trump administration.


February 1, 2019 - Inside Nonconforming Markets

ATR Rule Prompts Mixed Results for Non-QMs

The ability-to-repay rule helped improve loan performance for non-qualified mortgages but a robust secondary market for the loans hasn’t developed, according to an analysis by the Consumer Financial Protection Bureau.


February 1, 2019 - Inside Nonconforming Markets

Nonconforming Loan Indicators

Nonconforming loan indicators table


January 18, 2019 - 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.


January 18, 2019 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group names Bright as president; PennyMac offers HELOCs; Annaly ups its acquisition of expanded prime/non-qualified mortgage and seasoned residential whole loans in 2018; Angel Oak establishes a bank statement review team.


January 18, 2019 - Inside Nonconforming Markets

Large-Balance Jumbos Originations on the Rise

Mortgages originated with a balance between $10.0 million and $20.0 million have surged in recent years, according to an analysis by CoreLogic.


January 18, 2019 - Inside Nonconforming Markets

NewRez MBS Flush with Loans to Self-Employed

The expansion-minded New Residential Investment Corp., New York, seems to have a thing for self-employed borrowers: Most of its recent non-agency MBS deals are stuffed with the product.


January 18, 2019 - Inside Nonconforming Markets

Wells, Chase Bring Large Prime Non-Agency MBS

Wells Fargo and JPMorgan Chase are set to issue separate prime non-agency mortgage-backed securities that are significantly larger than their previous deals.


January 18, 2019 - Inside Nonconforming Markets

Angel Oak Preps Largest Post-Crisis Nonprime MBS

Angel Oak Companies is set to issue the largest post-crisis nonprime mortgage-backed security.


January 18, 2019 - Inside Nonconforming Markets

ATR Rule Curtails Non-Agency Lending

Originations of non-agency mortgages have taken a hit since the ability-to-repay rule came into effect, according to an analysis published by the Consumer Financial Protection Bureau last week.


January 18, 2019 - Inside Nonconforming Markets

Nonbanks Step Up Efforts with Non-Agency Products

To better compete with banks, several prominent nonbank lenders recently launched new non-agency products, including prime jumbo mortgages and non-qualified mortgages.


January 18, 2019 - Inside Nonconforming Markets

Loans with Higher LTV Ratios in 4Q18 Jumbo MBS

The average combined loan-to-value ratio on mortgages in jumbo mortgage-backed securities spiked towards the end of 2018, according to a new analysis by Inside Nonconforming Markets. [Includes two data charts]


January 18, 2019 - Inside MBS & ABS

Wells Makes Some Changes to Second Post-Crisis Deal

Wells Fargo’s second post-crisis jumbo MBS differs from the one it issued in October. The new deal is substantially larger than the previous issuance and the lineup of three rating services is somewhat different.


January 11, 2019 - Inside MBS & ABS

Redwood Set to End a Lull in Prime Non-Agency MBS

Redwood Trust is set to issue the first prime non-agency MBS the market has seen in more than a month. Issuance has all but grounded to a halt after October, but industry analysts expect more volume to flow following the Redwood deal.


January 11, 2019 - Inside MBS & ABS

Non-Agency MBS Issuance Faded in Fourth Quarter

Production of new non-agency MBS fell sharply in the fourth quarter, ending a year that still set a post-crisis record for new issuance. [Includes three data charts.]


Poll

Do mortgage lenders really need a new credit-scoring model or is the current FICO system adequate?

It’s fine. Stick with what works.

53%

Time for a change. Borrowers are different today.

35%

Undecided, still assessing the situation.

12%