More than 80% of the loans were in MBS issued in 2016 and 2017 that have since been “collapsed,” according to a report from Fitch Ratings.  

During the quarter, Redwood issued a $400.84 million prime non-agency MBS and sold approximately $800 million through whole loan executions.

A few months back, the firm raised $23 million by selling notes due in 2024. The unsecured, unsubordinated paper pays a yield of 7.125%. Sachem has received an investment grade private rating of BBB+ from Egan-Jones Co.

According to calculations made by Inside Mortgage Finance, the patch currently accounts for as much as 30% of single-family mortgages purchased by Fannie Mae and Freddie Mac. 

The presale report notes income on 47.5% of the loans was verified using “alternative methods,” which means personal or business bank statements.

Although MBS issuance was strong in the second quarter, ABS deals were less robust...

To date, much of the revival in the new “subprime” mortgage market (non-QM) has been driven exclusively by nonbanks, but that’s beginning to change...

MBA worries that if the GSE patch expires without any corresponding reforms to "preserve access to credit," the residential mortgage market will be disrupted...

Across the board, lenders are reporting stellar origination growth from the first to second quarters of the year, but the last two application surveys from the Mortgage Bankers Association showed weekly declines of 1.9% and 1.1%, respectively…

On Fannie Mae and Freddie Mac loans, originators are permitted to use ADU to underwrite loans based on employment-related retirement assets or “certain other assets of applicants who are near retirement,” the OCC noted.