Non-Agency MBS

Browse articles from all of our Newsletters related to Non-Agency MBS.

January 18, 2019 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group named Michael Bright as president and CEO, effective Jan. 21. Bright was acting president of Ginnie Mae and before that, EVP and chief operating officer. “The securitization industry plays a fundamental role in our economy and it is vital that policymakers and the industry work constructively together as the market continues to evolve,” Bright said in a statement. PennyMac Financial Services ... [Includes four briefs]


January 18, 2019 - Inside Nonconforming Markets

Wells, Chase Bring Large Prime Non-Agency MBS

Wells Fargo and JPMorgan Chase are set to issue separate prime non-agency mortgage-backed securities that are significantly larger than their previous deals. The second post-crisis jumbo MBS from Wells is sized at $711.7 million, compared with the $441.3 million MBS issued in October. Presale reports for the new deal were published last week. Wells is testing the market for jumbo MBS and the new deal differs in some ways from the October one. Loans in the new deal have ...


January 18, 2019 - Inside Nonconforming Markets

Angel Oak Preps Largest Post-Crisis Nonprime MBS

Angel Oak Companies is set to issue the largest post-crisis nonprime mortgage-backed security. Nearly all of the loans in the $609.60 million deal were originated by Angel Oak, according to presale reports released this week by DBRS and Fitch Ratings. This issue tops a $489.57 million deal by an affiliate of Verus Mortgage Capital last year. Atlanta, GA-based Angel Oak originated 95.5 percent of the dollar volume of mortgages in the issue, 3.0 percent were produced by HomeBridge ...


January 18, 2019 - Inside Nonconforming Markets

Loans with Higher LTV Ratios in 4Q18 Jumbo MBS

The average combined loan-to-value ratio on mortgages in jumbo mortgage-backed securities spiked towards the end of 2018, according to a new analysis by Inside Nonconforming Markets. In the first three quarters, the average combined LTV ratio for jumbo MBS issuance was around 70.0 percent. In the fourth quarter, it climbed to 76.2 percent. Several factors prompted the higher average, including the first post-crisis jumbo MBS stocked with ... [Includes two data charts]


January 18, 2019 - Inside MBS & ABS

Wells Makes Some Changes To Second Post-Crisis Deal

Wells Fargo’s second post-crisis jumbo MBS differs from the one it issued in October. The new deal is substantially larger than the previous issuance and the lineup of three rating services is somewhat different.


January 11, 2019 - Inside MBS & ABS

Redwood Set to End a Lull in Prime Non-Agency MBS

Redwood Trust is set to issue the first prime non-agency MBS the market has seen in more than a month. Issuance has all but grounded to a halt after October, but industry analysts expect more volume to flow following the Redwood deal.


January 11, 2019 - Inside MBS & ABS

Non-Agency MBS Issuance Faded in Fourth Quarter

Production of new non-agency MBS fell sharply in the fourth quarter, ending a year that still set a post-crisis record for new issuance. [Includes three data charts.]


January 4, 2019 - Inside Nonconforming Markets

News Briefs

CORRECTION: The ranking published in the Dec. 14, 2018, issue of Inside Nonconforming Markets of Top Bank/Thrift First-Lien Residential Mortgage Portfolios for 3Q18 included some errors. An updated version of the ranking and story are available at www.insidemortgagefinance.com. Redwood Trust is preparing to issue a $349.6 million prime non-agency mortgage-backed security, according to presale reports published this week by ... [Includes four briefs]


January 4, 2019 - Inside Nonconforming Markets

MBS Issuers Experimenting With Stop-Advance Feature

Issuers of non-agency mortgage-backed securities are adding more variety to the stop-advance features of the deals, leading to criticism from rating services. Industry analysts, though, said the move doesn’t necessarily create new risks. With non-agency MBS, master servicers have to advance the principal and interest due for delinquent loans. Historically, they had to make the payments if the advances were deemed recoverable, analysts at Deutsche Bank Securities noted ...


January 4, 2019 - Inside Nonconforming Markets

Redwood Sticks out in Assessment by Moody’s

Moody’s Investors Service recently completed a round of assessments of originators and aggregators of non-agency mortgages. One of the key findings showed that Redwood Trust has a loan review policy for prime jumbo mortgages that differs from other aggregators. “Redwood continues to be the only aggregator that we have assessed to date who does not conduct full reviews on 100 percent of acquired prime jumbo residential mortgage loans,” Moody’s said. Three banks ...


January 4, 2019 - Inside Nonconforming Markets

Issuance of Non-QM MBS Expected to Rise in 2019

The market for mortgage-backed securities with non-qualified mortgages will continue to grow in 2019, according to industry analysts. However, the annual doubling of volume seen in recent years appears unlikely. Analysts at both Bank of America Merrill Lynch and Wells Fargo Securities project non-QM MBS issuance to increase by about 60 percent in 2019. Some $11.38 billion of expanded-credit MBS, including non-QMs, was issued in 2018, according to Inside Nonconforming ...


January 4, 2019 - Inside Nonconforming Markets

Non-Agency MBS Issuance Nearly Doubles in 2018

The total dollar volume of non-agency mortgage-backed securities backed by new originations nearly doubled in 2018, according to a new ranking and analysis by Inside Nonconforming Markets. Some $29.08 billion of non-agency MBS backed by new loans was issued in 2018, a 94.3 percent increase from 2017. Issuance of both prime non-agency MBS and expanded-credit deals hit post-crisis highs last year. Some $17.69 billion of prime non-agency ... [Includes one data chart]


December 20, 2018 - Inside MBS & ABS

DBRS Ranked Tops in Non-Agency MBS Ratings at 9-Month Mark in 2018, S&P First in ABS

DBRS continued to rank as the most active rating servicing in non-agency MBS as of the end of the third quarter, with S&P Global leading the industry in ABS ratings, according to a new ranking by Inside MBS & ABS. [Includes two data charts.]


December 14, 2018 - Inside Nonconforming Markets

Issuers Bring MBS Close to Year End

With 2018 winding down, issuers of non-agency mortgage-backed securities introduced two new deals this week. Neuberger Berman is set to issue its second expanded credit MBS of the year while Verus Mortgage Capital is planning its second deal backed by nonprime loans for investment properties. Neuberger Berman’s Homeward Opportunities Fund I Trust 2018-2 will be a $320.1 million deal and Verus Securitization Trust 2018-INV2 will be a $254.8 million issuance. Sprout Mortgage ...


December 14, 2018 - Inside Nonconforming Markets

Outlook for Prime Non-Agency MBS Issuance Closely Connected with GSE Pricing, Tools

Issuance volume and lending practices in the prime non-agency mortgage-backed security market in 2019 will be linked in several ways to the government-sponsored enterprises, according to industry analysts. Volume projections for prime non-agency MBS depend on pricing differences between non-agency execution and delivery of loans to Fannie Mae and Freddie Mac. Non-agency lenders are also expected to increasingly use tools developed by the GSEs. “We expect robust issuance from ...


December 14, 2018 - Inside MBS & ABS

Carrington Prepping Its First Non-QM MBS; Angel Oak Will be Active as Others Eye Entry Into the Market

With more lenders eyeing the non-qualified mortgage sector for entry in 2019, the deal volume for non-agency MBS could pick up significantly in the quarters ahead.


December 14, 2018 - Inside MBS & ABS

Non-Agency MBS Outstanding Nearing End of 11-Year Tunnel, Agency Market Plods Forward

The supply of single-family non-agency MBS continued to decline in the third quarter of 2018, but the sector may be nearing a turnaround point, according to a new Inside MBS & ABS analysis of outstanding mortgage securities. [Includes two data charts.]


December 7, 2018 - Inside MBS & ABS

Ruling on Non-Agency MBS Statute of Limitations in NY Prompts Reconsideration of Accrual Clauses

Lawyers for issuers of non-agency MBS are revising deal documents and considering choosing a different state for issuance after an unfavorable ruling by the New York State Court of Appeals.


December 7, 2018 - Inside MBS & ABS

Demand for New Non-Agency MBS Fading, Lack of Depth Among Investors an Issue

The spreads on newly issued non-agency MBS have widened in recent months, indicating weak-er demand from investors. The pricing trends follow sharp increases in issuance this year, with analysts suggesting there may not be enough investors to absorb new production.


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