Competition for non-QMs is fierce among aggregators in the secondary market. The loans offer strong returns when held in portfolio or when packaged into MBS. However, some investors believe the bids are getting overheated.
New guidelines from SFA for TRID reviews in non-agency MBS; Figure raises capital and makes a hire; Premium Point CEO sentenced to prison; Verus and Carrington launch new products; Fitch upgrades servicers; Sachem co-CEO resigns.
Provident Funding Associates is set to issue a non-agency MBS with mortgages eligible for sale to the GSEs. The types of loans in the deal differ from previous non-agency MBS packed with Fannie/Freddie-eligible mortgages.
A busy market: An affiliate of Neuberger Berman is prepping a $411.1 million expanded-credit MBS; Credit Suisse increased the number of lenders it's sourcing non-QMs from; and an affiliate of PIMCO issued another deal with seasoned non-QMs that were subject to clean-up calls.
The amount of outstanding subprime mortgages handled by a group of prominent servicers fell by 4.1% in 3Q19. Among the 15 processors, none increased their portfolios on a sequential basis. (Includes data chart.)
The parent company of United Wholesale Mortgage was the top originator of mortgages in prime non-agency MBS issued in the third quarter. Underwriting standards haven’t changed much in the past year. (Includes two data charts.)
Impac is making some changes aimed at increasing originations of non-QMs after focusing on GSE refis in 3Q19. The lender’s profitability took a hit as GSE mortgages offer lower margins than non-QMs.
It’s still not clear how the CFPB will address the patch for qualified mortgages, prompting speculation among participants in the non-QM market. The bureau has the issue listed on its December agenda.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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