Whole Loan Update 03/24/20

Struggling to sleep these days and my work wife is about to kill me but here’s an what we can share, this morning.  

We sent an email yesterday, some thought it was a little rosey but we did receive a lot of feedback on what buyers are still buying.  Keep in mind as we search for clearing levels in the whole loan market we’re competing against the MBS market with yields approaching low to mid teens.

We are axed to buy
                Delinquent insured FHA loans – any size
                Delinquent insured VA loans – any size
                NPLs – received 8 responses looking to buy most were capping at $10mm to start – pricing 60’s to 70’s

NPLs & REOs – geographic buyers – better pricing but specific targeted areas
                RPLs – any size probably 10 to 15 points back of highs
                Bridge and Fix & Flip loans – couple performing buyers around 10% yield. Will buy retained.
                Non QM – numerous responses, lots of interest in price discovery – pricing appears to be in
the low 90s area, although most originators are trying to hold out for higher.

** we have a buyer(s) in size trying to determine entry point**
    Scratch & Dent – Small sector, still trading, prices have fallen 10 – 20%

We did not receive any inquiry regarding Rental loans, HELOC’s  nor Jumbo / Alt A loans.

Originators are still originating loans, focused on agency product so they can continue to pay employees, they must get these nonagency loans off their warehouse lines to make room for new originations and raise cash. 

Color on a pool level basis and the attached spreadsheet includes links to each.  If you need addresses please let us know. 

Non QM – 8 pools for $209mm – this segment has survived on the securitization market which has completely frozen. We are still in price discovery mode.

Non-Performing / Re-performing Loans – 8 pools for $135mm – 3 pools traded Thursday & Friday of last week, 2 pools are bridge or fix & flip
Scratch & Dent – 23 pools for $61mm – 11 pools traded over the past 5 days
Jumbo – Alt A & Prime Loans – 4 pools for $155mm
Rental Loans – 3 pools for $29mm
Please keep us informed on what you’re doing as we will attempt to do the same.
Good luck and stay healthy!