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.
Originations of non-agency mortgages have taken a hit since the ability-to-repay rule came into effect, according to an analysis published by the Consumer Financial Protection Bureau last week.
To better compete with banks, several prominent nonbank lenders recently launched new non-agency products, including prime jumbo mortgages and non-qualified mortgages.
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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