Originations of non-qualified mortgages could reach $100.0 billion a year, according to officials at three prominent nonprime lenders. Since QM standards from the Consumer Financial Protection Bureau took effect at the start of 2014, non-QMs such as jumbo mortgages with interest-only terms have predominantly gone to affluent borrowers. However, officials at Angel Oak Mortgage Solutions, Deephaven Mortgage and Citadel Servicing see promise in originations for ...

Sterling Bank & Trust does limited income documentation under its bank statement program but the bank said there have been zero delinquencies on the nearly $1.00 billion in such loans the bank has funded in the past five years. Some $33.2 million in loans from Sterling’s Advantage Home Ownership Program were included in the $217.0 million non-agency mortgage-backed security issued by Lone Star Funds last week. Rating reports on the MBS by DBRS and Fitch Ratings provided ...

Ocwen Financial accounted for slightly more than half of the modifications completed under the new Streamline Home Affordable Modification Program offering, according to the company. Streamline HAMP mods are only available for non-agency mortgages. The program is aimed at borrowers who meet general HAMP eligibility criteria but haven’t completed a loan mod application by the time their loan is 90 days delinquent. It’s streamlined in that no income documentation is ...

CORRECTION: Redwood Trust’s Choice program doesn’t allow for stated-income documentation, as originally reported in the Sept. 9, 2016, issue of Inside Nonconforming Markets. And Redwood does allow underwriting exceptions for Choice mortgages, a change that was made after the program was introduced. The baseline conforming loan limit for Fannie Mae and Freddie Mac will likely go up to about $422,000 in 2017, according to an Inside ... [Includes four briefs]

Altisource’s stock price declined by 6.4 percent to $30.77 per share shortly after the charges were announced, but the stock has rebounded somewhat…

Some residential mortgage-backed securities loan originators are moving away from performing internal post-acquisition quality control loan reviews in lieu of obtaining feedback from their whole loan investors, according to a new report from Moody’s Investors Service. “Some aggregators are relying more on their investors for quality control feedback,” said Moody’s. The ratings service identified in particular Redwood Residential Acquisition Corp. and JPMorgan Mortgage Acquisition Corp., which it said “are relying more on feedback from whole loan investors to monitor the quality of due diligence firm loan reviews, as opposed to conducting their own internal reviews, since a large portion of their acquisitions are sold in whole-loan trades.” Moody’s noted...

Despite improvement in securitization returns, jumbo whole loan sales are still more profitable, KBW said.

Will a potential residential mortgage customer bolt Wells Fargo because they can’t trust the bank’s employees, including its retail loan officers?

However, the sample deal agent agreement doesn’t address one of the remaining controversial issues: how much to pay for their services.

The analysis, the first of its kind, was based on new Inside Mortgage Finance surveys that drew results from a broad sample of banks and nonbanks of all size classifications.