Lone Star Funds, an affiliate of Caliber Home Loans, is set to issue a nonprime mortgage-backed security with some of the least seasoned loans seen in a post-crisis deal.
Redwood Trust announced last week that it plans to acquire 5 Arches, an originator and asset manager of business-purpose real estate loans. Redwood acquired a 20 percent stake in the lender last year with an option to fully ac-quire the Irvine, CA-based company.
The ability-to-repay rule helped improve loan performance for non-qualified mortgages but a robust secondary market for the loans hasn’t developed, according to an analysis by the Consumer Financial Protection Bureau.
The loans included in expanded-credit mortgage-backed securities in the fourth quarter of 2018 had on average tighter underwriting than previous issuance. [Includes one data chart.]
Two prominent players in the jumbo market reported mixed trends in originations for the fourth quarter. First Republic Bank’s single-family mortgage originations increased slightly on a sequential basis, while Flagstar Bank saw a sharp drop in jumbo lending.
The Structured Finance Industry Group names Bright as president; PennyMac offers HELOCs; Annaly ups its acquisition of expanded prime/non-qualified mortgage and seasoned residential whole loans in 2018; Angel Oak establishes a bank statement review team.
The expansion-minded New Residential Investment Corp., New York, seems to have a thing for self-employed borrowers: Most of its recent non-agency MBS deals are stuffed with the product.
Wells Fargo and JPMorgan Chase are set to issue separate prime non-agency mortgage-backed securities that are significantly larger than their previous deals.
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