Mortgage demand rises amid MBS volatility
Mortgage rates fell last week, spurring an increase in demand. But a volatile secondary market is causing challenges.
Mortgage rates fell last week, spurring an increase in demand. But a volatile secondary market is causing challenges.
Silicon Valley Bank resumed mortgage originations on Tuesday via its newly established “bridge bank” â just four days after California state regulators took possession of the financial institution.
Angel Oak Mortgage Trust (AOMT) has started preparing its second non-QM RMBS this year – a $495.5 million transaction secured by loans originated by Angel Oak Mortgage Solutions and Angel Oak Home Loans. The group is set to issue a securitization backed by a pool of 877 loans, 72.2% of which are non-qualified mortgages, while … [Read more…]
The company’s agency RMBS holdings dropped to $863.3 million in the fourth quarter, a 5% decline from $909.4 million in the previous quarter. Over the same period, Ellington increased its non-agency RMBS portfolio by $4.8 million to $12.6 million, while its holdings of interest-only securities were roughly unchanged due to tighter yield spreads. “In recent … [Read more…]
However, lenders are subject to more stringent lending and disclosure laws, including the ATR Rule and TRID. Fitch models higher stressed losses for affordability products and adjusts modeled losses based on the results of the third-party review (TPR) firms that conduct credit, compliance, valuation, and data integrity reviews on loans in new US RMBS transactions … [Read more…]
Does technology always trump personal skills? Sometimes. But not all the time. Good LOs use the technology that best suits them in combination with their personal attributes to help borrowers every day. âIn space, no one can hear you scream. In cyberspace, no one can shut you up.â How âbout some IT-related stuff? Hereâs a softball: did you know that âBluetoothâ was named after Harald Bluetooth? The Bluetooth wireless specification design was named after the king in 1997, based on an analogy that the technology would unite devices the way Harald Bluetooth united the tribes of Denmark into a single kingdom. Another good use of technology is exhibited by Tim Lucas who writes, âThere are more than 5 million Native Americans in the U.S. but only about 140 approved lenders. I created a Section 184 calculator that shows the required down payment, MI costs, and more. There’s also a flowchart and a ton of info about the program.â Thank you, Tim! Hereâs some more good news: Ransomware victims are refusing to pay, impacting attackersâ profits. (Todayâs podcast can be found here and this weekâs is sponsored by Milestones. Giving homeowners an all-inclusive homeownership experience including home value and equity monitoring, home maintenance reminders and how-to articles, cloud-based document storage, one-click access to hire professionals for various projects around the home, and much more. Todayâs has an interview with Milestones CEO Dustin Gray on turning leads and transactions into forever clients.)
“Fitch views the home price values of this pool as 8.1% above a long-term sustainable level (vs. 10.5% on a national level as of January 2023, down 1.7% since last quarter),” the rating agency wrote in its pre-sale report. “Underlying fundamentals are not keeping pace with the growth in prices, resulting from a supply/demand imbalance … [Read more…]
The FHFA’s move to lower the fee for commingled securities should remove much of the friction in the UMBS market, the MBA said.