Subprime Mortgages

Browse articles from all of our Newsletters related to Subprime Mortgages.

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

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 MBS & ABS

REITs and Nonprime Originators Looking to Strike ‘Working Relationships’ that Benefit Both of Them

A handful of real estate investment trusts are looking to partner with nonprime lenders in a move that could help prime the pump for a significant increase in securitizations of non-agency mortgages that stretch the credit box.


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

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 10, 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 10, 2017 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group this week unveiled key performance indicators for deal agents to track in new non-agency mortgage-backed securities. The proposed standards detail 150 measurements for deal agents to monitor. Ocwen Financial reported a net loss of $6.14 million for the third quarter of 2017. The loss would have been worse if not for a one-time tax benefit of $23.2 million related to the release of previously established reserves ... [Includes three briefs]


November 10, 2017 - Inside Nonconforming Markets

Freddie’s Nonprime MBS Holdings Down Sharply

Freddie Mac significantly reduced its holdings of nonprime mortgage-backed securities in the third quarter, according to an analysis by Inside Nonconforming Markets. Freddie held $5.14 billion of nonprime MBS as of the end of September, down 52.2 percent from June. The government-sponsored enterprise sold approximately $5.00 billion of its non-agency MBS holdings during the quarter, according to filings with the Securities and Exchange Commission ... [Includes one data chart]


November 10, 2017 - Inside Nonconforming Markets

Higher-Priced Lending Increased in 2016

Originations of higher-priced mortgages increased significantly in 2016 compared with the previous year, according to an analysis by Inside Nonconforming Markets of data from the Home Mortgage Disclosure Act. The analysis excluded government-insured mortgages, multifamily loans and home-improvement loans. Some $28.61 billion of non-government-insured higher-priced mortgages were originated in 2016, up 28.9 percent from the previous year ... [Includes one data chart]


November 10, 2017 - Inside Nonconforming Markets

Nonprime Lenders Aim to Avoid Risk Layering

Nonprime lenders allow credit scores as low as 500 and loan-to-value ratios up to 90.0 percent, but new originations don’t typically reach such extremes. According to an analysis by Inside Nonconforming Markets, the average credit score on loans in nonprime/Alt A mortgage-backed securities issued in recent years was 701.1. The average combined LTV ratio for the loans was 74.9 percent and the average debt-to-income ratio was 37.0 percent. The analysis ... [Includes one data chart]


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%