JPMorgan Chase and Credit Suisse are coming to market with separate jumbo mortgage-backed securities that have some sharp differences in terms of collateral. The $379.78 million JPMorgan Mortgage Trust 2015-3 includes some unique characteristics such as a handful of loans with combined loan-to-value ratios above 80.0 percent and some interest-only mortgages. While the average combined LTV ratio for mortgages to be included in the deal is 69.9 percent, 15 mortgages ...

With little movement from Congress to reform the government-sponsored enterprises, some industry analysts have called on the Obama administration to re-capitalize the GSEs and end their conservatorships. While such an action appears unlikely, the move could help boost activity in the non-agency market. If Fannie Mae and Freddie Mac were privatized, they would likely have to increase their capital from current levels and face increased borrowing costs. Interest rates ...

In a ruling that may impact future fair-lending class actions, a federal district court judge in Manhattan has denied class certification in a lawsuit brought by the American Civil Liberties Union and National Consumer Law Center against global investment bank Morgan Stanley. Filed in October 2012, the suit was brought on behalf of African American borrowers in Detroit who obtained subprime loans from New Century Mortgage, a now-defunct originator that sold the loans to secondary-market purchasers, including Morgan Stanley, which then securitized them. New Century originated...

Privately held nonbank mortgage firms – and even some public ones – increasingly are contemplating issuing more debt securities as a way to fund growth. The reliance on debt is seen as a more attractive alternative than going public, which can leave too much of a young company in the hands of outside parties that are merely looking for a quick profit after a lender lists its stock. Then again, not too many mortgage companies are contemplating...

Interest rate volatility and other issues caused a reduction in jumbo-related profitability at some nonbanks in the first quarter of 2015. However, many nonbank conduits remain optimistic that the jumbo business will pay off, particularly via issuance of mortgage-backed securities. Redwood Trust reported $2.0 million in income from residential mortgage banking activities in the first quarter of 2015, down 80 percent from the previous quarter. The decline was primarily due to lower margins on ...

A draft of legislation unveiled this week by Sen. Richard Shelby, R-AL, includes provisions that would support portfolio lenders and real estate investments trusts, among a myriad of other issues. Support from Democrats for some of the provisions in the draft has been tepid, and it’s not clear that President Obama would sign a bill without changes. The Financial Regulatory Improvement Act of 2015 aims to “improve access to credit and reduce the level of risk in our financial system,” ...

Ellington Financial plans to start acquiring non-qualified mortgages by early summer, according to officials at the nonbank. While Ellington has always seen value in the non-agency market, to this point the company has largely focused its non-agency investments on mortgage-backed securities and other structured-finance products. Laurence Penn, Ellington’s president and CEO, said the nonbank signed its first flow agreement for non-QMs at the end of the first quarter. “Consistent with ...

A sharp divide in the decline of nonprime mortgages held by the government-sponsored enterprises persists, according to a new analysis by Inside Nonconforming Markets. Holdings of nonprime mortgage-backed securities are down much more sharply at Fannie Mae and Freddie Mac than the GSEs’ holdings of purchased or guaranteed nonprime loans. Fannie and Freddie held a combined $50.78 billion in nonprime MBS as of the end of ... [Includes one data chart]

Ocwen Financial filed its annual report for 2014 this week and noted that its auditors decided against requiring a “going concern” qualification for the nonbank. “We believe the filing of our annual report, without a qualification as to our ability to operate as a going concern, is additional evidence that our strategy to strengthen our compliance management system, strengthen the service we provide to our customers and improve our financial stability is working and that confidence ...

Two types of shared-appreciation transactions are being touted as beneficial to borrowers, either allowing them to buy homes at below-market prices or receive advanced payment for expected appreciation. Analysts at the Urban Institute note that nonprofit housing associations and municipalities offer shared-appreciation programs that can make homes more affordable for first-time buyers, people with bad credit or buyers who lack the necessary downpayment or income to ...