The market for mortgage-backed securities backed by newly originated nonprime mortgages received a jolt this month as Angel Oak Capital Advisors and Deephaven Mortgage separately issued new deals, according to offering documents obtained by Inside Nonconforming Markets. Angel Oak Mortgage Trust I, LLC 2016-1 was backed by mortgages with an unpaid principal balance of $132.65 million and Deephaven Residential Mortgage Trust 2016-1 was ...
JPMorgan Chase is preparing to issue a $302.27 million jumbo mortgage-backed security where non-qualified mortgages will account for 20.2 percent of the loan balance, according to presale reports. All of the mortgages in the planned JPMorgan Mortgage Trust 2016-2 were originated by First Republic Bank via the retail channel. Most prime MBS issued since QM standards took effect in 2014 have been backed solely by QMs and the few deals that have included non-QMs tend ...
Redwood Trust has no plans to suspend issuance of jumbo mortgage-backed securities, according to Kristin Brown, a vice president and head of investor relations at Redwood. The Redwood official was responding to a report by Asset-Backed Alert, which cited anonymous sources claiming that the real estate investment trust will issue a jumbo MBS during the third quarter then “pull back from the market indefinitely.” Brown said that while additional transactions are always ...
Officials at Luther Burbank Savings see promise in the types of jumbo mortgages that many larger banks aren’t willing to originate in significant numbers: non-qualified mortgages. Jason Pendergist, president of consumer and commercial banking at Luther Burbank, said there’s a “massive opportunity” in non-QM jumbo mortgages. He said Luther Burbank focuses its originations on prime jumbo borrowers and first-time homeowners. Big banks have been willing to offer ...
The new nonprime mortgage-backed securities from Angel Oak Capital Advisors and Deephaven Mortgage included a number of mortgages with compliance issues relating to the TILA-RESPA Integrated Disclosure rule, according to offering documents obtained by Inside Nonconforming Markets. Part of the compliance issues stem from the ongoing uncertainty regarding cures for minor errors. While the Consumer Financial Protection Bureau issued a proposed rule ...
While private mortgage insurance on new non-agency mortgage originations has been minimal since 2008, some industry participants project that private MI will play a role in the non-agency mortgage-backed security market going forward. “Mortgage insurers may get more involved with the private-label market, and this may be another source of third-party oversight,” Morningstar Credit Ratings said in a recent report. “While it is too early to predict the investors’ response to ...
Underwriting standards for jumbo non-qualified mortgages were largely unchanged in the second quarter of 2016 compared with the previous period, according to the Federal Reserve’s senior loan officer opinion survey. Some 53 respondents didn’t change their underwriting standards for the loans compared with the previous quarter, while three respondents loosened underwriting for the loans “somewhat” and two tightened somewhat. Four of the ... [Includes two briefs]
Two Harbors Investment and other nonbank conduits exited the jumbo market just before pricing for new jumbo mortgage-backed securities improved, according to industry participants. “The difference between a bulk sale execution and a Sequoia execution right now is only an eighth of a point,” Marty Hughes, CEO of Redwood Trust, said this week during the real estate investment trust’s earnings call. “That’s the tightest it’s probably been in a year and a half.” Christopher Abate, Redwood’s ...
Two Harbors Investment more than doubled its jumbo mortgage-backed security issuance in 2015 compared with the previous year, but the increase wasn’t enough to make it worthwhile for the real estate investment trust to continue operating a mortgage conduit. “As we look forward, the environment just was not one that was conducive to the continuation of the business,” Thomas Siering, Two Harbors’ president and CEO, said last week during the REIT’s earnings call. “The market ...
The proposed rule from the Consumer Financial Protection Bureau addressing the TILA-RESPA Integrated Disclosure rule will likely help the non-agency market, according to industry participants. However, there’s also some frustration that the CFPB didn’t do as much as it could have to address cures and assignee liability. Industry attorneys note that if enough comments are submitted on the issues, the CFPB might make further changes to TRID. The changes proposed by the CFPB ...