Cart

Inside Nonconforming Markets

June 17, 2016

View Archived Issues

Lone Star to Issue First Rated Nonprime MBS Backed by Post-Crisis Originations

Lone Star Funds is preparing to issue a $161.71 million nonprime mortgage-backed security that will close next week. COLT 2016-1 Mortgage Loan Trust received an A rating from DBRS and Fitch Ratings. The deal marks the first nonprime MBS backed by new originations to receive a rating since the financial crisis. It will also be the largest post-crisis nonprime MBS issued to date, topping a $150.35 million MBS from Angel Oak Capital Advisors in December. Officials at Fitch Ratings said ... Read More

Wells Fargo Tops Jumbo Servicers, By Far

Wells Fargo services more than a third of the jumbo mortgages serviced by the top 30 lenders in the sector, according to a new analysis by Inside Nonconforming Markets. Wells serviced a portfolio of jumbo mortgages with an unpaid principal balance of $268.16 billion as of the end of the first quarter of 2016. The bank’s jumbo servicing portfolio increased by 13.0 percent compared with the first quarter of 2015. The group of 30 companies handled ... [Includes one data chart] Read More

Few Delinquencies on Caliber’s Non-Agency Loans

Performance data on nonprime mortgages originated by Caliber Home Loans in recent years suggest that it’s possible to originate loans to borrowers who don’t qualify for agency financing without experiencing major delinquencies. Caliber started originating non-agency mortgages in its portfolio loan program in the fourth quarter of 2014. None of the mortgages have been 60 or more days past due, according to a term sheet for a pending nonprime mortgage-backed security ... Read More

Non-Agency Market Adapting to TRID

The issuance of three non-agency mortgage-backed securities in quick succession suggests that industry participants have adjusted to liability posed by the Truth in Lending Act/Real Estate Settlement Procedures Act disclosure rule. Jumbo MBS from JPMorgan Chase and Redwood Trust along with a nonprime MBS from Lone Star Funds all included mortgages subject to TRID and loans with TRID exceptions. TRID was seen as a major impediment to non-agency MBS issuance ... Read More

Chase’s Jumbo MBS Dinged for Reps and Warrants

A $412.66 million jumbo mortgage-backed security planned by a unit of JPMorgan Chase received high marks from rating services save for the representations-and-warranty framework on the MBS. Presale reports on JPMorgan Mortgage Trust 2016-1 were published last week, with AAA ratings from DBRS, Fitch Ratings and Moody’s Investors Service. Some 15 lenders contributed to the planned MBS, led by New Penn Financial with a 19.7 percent share, Primary Capital Mortgage ... Read More

Interest-Only Originations Increase in First Quarter

Originations of interest-only mortgages increased sharply in the first quarter of 2016, according to a new analysis by Inside Nonconforming Markets. A group of 12 lenders originated $8.72 billion in IOs in the first quarter, up 26.9 percent from the previous quarter and a 29.8 percent increase from same period in 2015. IO originations in the first three months of 2016 even topped the $8.61 billion in IO originations by the lenders in the second quarter of 2015. [Includes one data chart] ... Read More

Borrowers with Large Loans Consider Few Lenders

The first report from the National Mortgage Database offers some details on borrowers with large loans beyond the data included in the Home Mortgage Disclosure Act. The NMDB includes information from surveys administered by the Consumer Financial Protection Bureau and the Federal Housing Finance Agency. The federal regulators survey about 6,000 new borrowers on a quarterly basis, accounting for about 0.4 percent of the population of new mortgage originations ... Read More

News Briefs

Overture Technologies announced this week that it added support for trended credit data to its automated underwriting system for non-agency mortgages. Trended credit data detail a potential borrower’s use and repayment of revolving credit over time. “Lenders, particularly those specializing in loans to borrowers with previous bankruptcy or housing defaults, can leverage this data to understand how consumers have managed their use of ... [Includes six briefs] Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results