Jumbo Mortgages

Browse articles from all of our Newsletters related to Jumbo Mortgages.

December 9, 2016 - Inside MBS & ABS

RMBS Market Will Keep Evolving in 2017 With More Varied Collateral, New Structures

New non-agency MBS issued in 2017 will likely include more diversified collateral and feature some structural changes, analysts at Moody’s Investors Service said in a new report this week. The rating service projected that non-agency prime jumbo volume will remain steady in 2017, while issuers will continue to explore non-traditional asset types, such as re-performing and non-performing loans, reverse mortgages, non-qualified mortgages and nonprime transactions. “Although prime jumbo deals will start to include loans with slightly lower FICOs and higher loan-to-value ratios than those loans included in 2016 transactions, collateral quality will remain...


December 9, 2016 - Inside MBS & ABS

SFIG Unveils Sample Deal-Agent Agreement and Bondholder Communications Plan in 5th Edition of RMBS 3.0 Green Paper

The Structured Finance Industry Group this week put more flesh on the bones of its proposed deal-agent role in future non-agency MBS and introduced a plan for improved communications among MBS investors. The fifth edition of SFIG’s RMBS 3.0 Green Paper adds recommendations on data standardization, enforcement mechanisms for breaches of deal terms and materiality standards. The new proposal on bondholder communications was drafted...


December 8, 2016 - Inside Mortgage Finance

Agency Jumbo Production Outpaced Traditional Jumbo Originations in 3Q16, Higher Conforming Limits Ahead

The one weak spot in the mortgage market during the third quarter was in traditional jumbo originations, a trend that was reinforced by a significant increase in production of agency mortgages in high-cost markets that exceeded $417,000. An estimated $101.0 billion of non-agency jumbo home loans were originated during the third quarter, down 1.9 percent from the previous quarter. At the same time, production of conforming-jumbo mortgages – loans greater than $417,000 that were securitized by Fannie Mae, Freddie Mac and Ginnie Mae – jumped 27.7 percent from the second to the third quarter. Some of the disparity is...[Includes three data tables]


December 2, 2016 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


December 2, 2016 - Inside Nonconforming Markets

News Briefs

Lone Star Funds is set to issue a mortgage-backed security backed by new nonprime mortgages, according to documents filed with the Securities and Exchange Commission this week. It will be the third MBS from the COLT shelf this year. AMC Diligence said it reviewed 486 mortgages with a total unpaid principal balance of $235.40 million for the planned MBS. The mortgages were originated by Caliber Home Loans, LendSure Mortgage and Sterling Bank & Trust ... [Includes two briefs]


December 2, 2016 - Inside Nonconforming Markets

AIG Plots Return to Non-Agency MBS Issuance

American International Group is preparing to resume issuing non-agency mortgage-backed securities, according to officials at the insurance company. The planned issuance differs significantly from the subprime MBS AIG issued before the financial crisis. Douglas Dachille, an executive vice president and CIO, said the firm is working to “rebalance its exposure to residential mortgages” after AIG’s sale of United Guaranty, a private mortgage insurer. During a recent presentation to investors ...


December 2, 2016 - Inside Nonconforming Markets

Jumbo Servicing Increases for Many in 3Q16

Most of the top 30 servicers of jumbo mortgages increased their servicing portfolios during the third quarter, according to a new Inside Nonconforming Markets ranking. The volume of jumbo mortgages outstanding rose to an estimated $892.4 billion as of the end of September, up 1.7 percent from June and up 10.2 percent from a year ago. Wells Fargo remained the top jumbo servicer, with a $275.1 billion portfolio. That was up 1.1 percent compared to the second quarter ... [Includes one data chart]


December 2, 2016 - Inside Nonconforming Markets

Higher Loan Limits Take Small Non-Agency Bite

New loan limits for the government-sponsored enterprises in 2017 won’t have much of an impact on jumbo originations, according to an analysis by Inside Nonconforming Markets. The Federal Housing Finance Agency announced last week that the baseline conforming loan limit for Fannie Mae and Freddie Mac will increase in 2017, which will also boost the GSEs’ high-cost loan limit. The baseline conforming loan limit will increase to $424,100 in 2017, up from the $417,000 level it has ...


December 2, 2016 - Inside Nonconforming Markets

SFIG Plan on Non-Agency MBS Reps and Warrants Puts Burden on Aggregators

Standards proposed by the Structured Finance Industry Group for disclosures of representations and warranties on new non-agency mortgage-backed securities are likely to put a burden on conduits and other aggregators that pool mortgages from scores of originators. The Wall Street group recently released the fourth edition of its RMBS 3.0 “green papers,” which aim to revive issuance of non-agency MBS by making reforms that will attract investors. The latest green paper focused on ...


November 18, 2016 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


November 18, 2016 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group published the fourth edition of its “RMBS 3.0 Green Papers” this week. The trade group said it will release a fifth edition of the Green Papers in the coming weeks. The latest papers address various issues in the non-agency mortgage-backed security market, including representations and warranties, the concept of a deal agent and data disclosure. Moody’s Investors Service this month withdrew its assessment of ... [Includes two briefs]


November 18, 2016 - Inside Nonconforming Markets

Improved Pricing for Redwood’s Jumbo MBS

Pricing has improved sequentially with each of the three jumbo mortgage-backed securities Redwood Trust has issued this year, according to officials at the real estate investment trust. Redwood’s most recent deal, a $343.16 million jumbo MBS, was issued in October. Christopher Abate, Redwood’s president and CFO, said it’s possible that the REIT will issue another jumbo MBS this year. Marty Hughes, Redwood’s CEO, added a caveat about uncertainty in the financial markets ...


November 18, 2016 - Inside Nonconforming Markets

Shellpoint, Chase Prep New Jumbo MBS

The market for jumbo mortgage-backed securities looks to be regaining some momentum as Shellpoint Partners plans to resume issuance and market-leader JPMorgan Chase prepares another deal. Shellpoint’s New Penn Financial is set to issue a $353.68 million jumbo MBS next week, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. Shellpoint Co-Originator Trust 2016-1 will mark the first issuance from the MBS shelf since ...


November 18, 2016 - Inside Nonconforming Markets

Jumbo Originations Decline in 3Q16 Along with Share of Mortgage Market

Originations of jumbo mortgages declined slightly from the second to the third quarter of 2016, according to a new ranking and analysis by Inside Nonconforming Markets. Meanwhile, production of conventional-conforming mortgages and loans with a government guarantee increased significantly in that span, prompting an uncharacteristic decline in market share for jumbo mortgages. An estimated $100.0 billion in jumbos were originated in ... [Includes one data chart]


November 18, 2016 - Inside MBS & ABS

Freddie’s New $459.9 Million Whole Loan Deal Faulted for Limited Third-Party Due Diligence

Freddie Mac is set to issue a $459.92 million Whole Loan Securities transaction, according to a presale report from Moody’s Investors Service. The firm didn’t rate the senior tranche of the deal but did place a Baa1 rating on a mezzanine tranche of Freddie Mac Whole Loan Securities 2016-SC02. The government-sponsored enterprise priced the latest WLS transaction this week, with the deal expected to close next week. “We are pleased with the pricing levels and depth of investor participation in the WLS program,” said Kevin Palmer, senior vice president of credit risk transfer at Freddie. “We look forward to continued issuance in 2017.” Freddie has issued...


November 17, 2016 - Inside Mortgage Finance

Government-Insured Lending Soared In 3Q16 While Jumbo Market Eased Up

Most of the lift in third-quarter mortgage originations came from the tail end of the refinance boom, especially in the agency market, according to a new Inside Mortgage Finance analysis. The government-insured market saw a hefty 21.4 percent jump in mortgage originations from the second to the third quarter as the sector reached an estimated $159.0 billion and accounted for 27.4 percent of total first-lien production. It was the second consecutive record quarter for FHA, VA and Department of Agriculture rural-housing production. The conventional-conforming segment was not far behind...[Includes two data tables]


November 4, 2016 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


November 4, 2016 - Inside Nonconforming Markets

News Briefs

Two Harbors Investment held jumbo mortgages with a fair market value of $655.80 million as of the end of September. While the real estate investment trust is on track to discontinue its mortgage loan conduit and securitization business, Two Harbors noted that it had outstanding purchase commitments to acquire $61.40 million in unpaid principal balance as of the end of September. Two Harbors said it incurred $1.19 million in costs during the third quarter ... [Includes three briefs]


November 4, 2016 - Inside Nonconforming Markets

Many Purchase Mortgages in New MBS

Purchase mortgages accounted for a large share of the loans in prime non-agency mortgage-backed securities issued during the third quarter of 2016, according to an analysis by Inside Nonconforming Markets. Purchase mortgages accounted for 67.3 percent of the $4.07 billion in prime non-agency MBS issued during the quarter. That was the highest quarterly share for purchase mortgages since at least the first quarter of 2013. The purchase-mortgage ... [Includes two data charts]


November 4, 2016 - Inside Nonconforming Markets

Jumbo Originations Show Signs of Decline

Jumbo lending declined in the third quarter of 2016 on a quarterly basis at some mid-sized banks, according to an analysis by Inside Nonconforming Markets. Officials at the banks suggest that the market for jumbo mortgages is still relatively strong, however, with some showing increased pipelines for originations. First Republic Bank had $2.81 billion in total mortgage originations in the third quarter of 2016, down 4.4 percent from the previous quarter. Most of the bank’s production ...


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In 2016, what have you been paying your retail residential loan officers, on average, as a commission?

25 to 50 basis points per loan
51 to 75 bps
76 to 100 bps
101 to 150 bps
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