Institutional investors are getting more comfortable with non-qualified mortgages, according to Angel Oak Capital Advisors. The firm announced last week that it raised $291 million in capital commitments for a private credit fund that will focus on non-QMs. The initial fundraising goal for Angel Oak Real Estate Investment Fund I was $250 million, according to AOCA. Officials weren’t willing to disclose how the fund will invest in non-QMs, but it has been involved in non-agency ...

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]

DoubleLine Capital, an investment management firm, recently created a new entity with plans to issue non-agency MBS and commercial MBS. These activities will be conducted via the new Mortgage Opportunities Capital, according to filings with the Securities and Exchange Commission.

In late December, Quicken Loans sold roughly $1 billion worth of corporate debt through a pri-vate placement, agreeing to pay investors an attractive yield of 5.25 percent.

Issuance of prime non-agency mortgage-backed securities will increase next year, according to predictions from various industry analysts. Some see a gradual increase while analysts at Kroll Bond Rating Agency said volume could double when including so-called expanded-prime MBS. Kroll said prime non-agency MBS issuance could hit nearly $20.0 billion in 2018. “Assuming that spread tightening across structured finance remains at or near current levels, execution may continue to favor ...

Some 55.2 percent of the loans in JPMorgan Chase’s forthcoming $883.8 million non-agency mortgage-backed security will be eligible for sale to the government-sponsored enterprises. Chase has included conforming mortgages in previous non-agency MBS but usually in smaller amounts. The GSE-eligible mortgages were largely originated by Chase, along with some contributions from loanDepot. The GSE-eligible mortgages have an average balance of $536,992 ...

Investor demand for non-agency mortgage-backed securities with non-qualified mortgages appears to have been boosted by the performance of such deals issued in recent years. There have been some delinquencies – owing to somewhat loose underwriting standards – but investors have largely been protected from losses. DBRS recently analyzed 18 non-QM MBS issued since 2015 and found that only three deals had experienced losses as of September. A $150.4 million deal from ...

Issuance of single-family rental securities started in 2013 and hit $7.17 billion in 2015, according to Inside MBS & ABS. Industry analysts suggest that the relative boom in issuance is over due to a number of factors, including activity by the government-sponsored enterprises.

The dollar volume of non-agency MBS backed by non-qualified mortgages could double or even triple next year, according to industry analysts. The increased issuance is expected to come from nonprime and prime borrowers who don’t qualify for conforming mortgages.

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]