Mortgage performance improved in the first quarter of 2017, recovering from a somewhat unexpected increase in delinquencies at the end of 2016. The total delinquency rate in the Inside Mortgage Finance Large Servicer Delinquency Index was 4.28 percent as of the end of March, down from 5.05 percent at the end of the previous quarter and improving on the 4.95 percent delinquency rate recorded in March 2016. Among the 32 servicers in the large delinquency index, only two reported...[Includes one data table]
Performance of non-QM loans has been strong, buoyed by good house-price appreciation and the fact there have been no lawsuits based on the ability-to-repay rule.
Deutsche noted that after years of a steady broad-based housing market recovery “investors are now facing severe shortages in distressed housing pipelines.”
Several trade groups, investors and analysts quickly issued their take on Watt’s comments, but there were some notables missing in action: Pershing Square and Fairholme.
Investors had a strong appetite for new non-agency MBS in the first quarter of 2017, according to issuers. “I am continuously amazed by how quickly we bring a deal out and how quickly the senior bonds gets sold,” Matthew Lambiase, president and CEO of Chimera Investment, said during the real estate investment trust’s earnings call for the first quarter. Chimera issued...
Industry attorneys are warning about a “third wave” of Lehman Brothers Holdings (LBHI) MBS trust claims against mortgage lenders and brokers based on the firm’s latest bankruptcy filing. Attorneys with the firm American Mortgage Law Group said Lehman Brothers for several years has been threatening to file residential MBS trust claims against the mortgage industry to counter trustee claims filed against LBHI in bankruptcy in 2009. The wait is...
Issuance of ABS backed by nonprime personal installment loans is expected to increase, according to S&P Global Ratings. The rating service hasn’t assigned AAA ratings to such ABS, though S&P said it will approach each deal on a case-by-case basis. Between 2013 and 2016, $10.50 billion of ABS backed by branch-based unsecured personal installment loans was issued, according to S&P. The rating service highlighted the sector recently, noting that personal installment loans don’t receive as much attention as marketplace lending, which had $15.10 billion in MBS and ABS issuance between 2013 and 2016. “Branch-based fixed-rate, fixed-term unsecured personal installment loans may not be...