Jumbo Trends

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

September 29, 2016 - Inside Mortgage Finance

‘Agency Jumbo’ Sector Spurts Ahead of Non-Agency Jumbo Production, Slight Loan Limit Hike Likely

During the second quarter, Fannie Mae, Freddie Mac and the Veterans Affairs home loan guaranty program all saw significant increases in production of “agency jumbo” loans – mortgages with loan amounts exceeding the baseline $417,00 agency loan limit. A new Inside Mortgage Finance analysis reveals that the agencies’ combined jumbo production, including FHA activity, rose 53.3 percent to $36.2 billion during the second quarter. That represented the highest quarterly total since “emergency” high-cost loan limits were established in the aftermath of the financial crisis. The FHA had...[Includes three data tables]


September 23, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


September 23, 2016 - Inside Nonconforming Markets

Jumbo MBS Issuance Picks Up With Chase Deal; Strong Demand for Whole-Loan Sales

JPMorgan Chase is set to end another lull in the issuance of jumbo mortgage-backed securities. The $395.40 million JPMorgan Mortgage Trust 2016-3 is scheduled to be issued next week, according to a presale report from Fitch Ratings. The most recently issued jumbo MBS priced in mid-August and was also from Chase. Only two firms with active conduits have issued jumbo MBS this year: Chase and Redwood Trust. Two Harbors Investment and WinWater Home Mortgage issued ...


September 23, 2016 - Inside MBS & ABS

Sample MBS Deal-Agent Agreement Released, But More Work Ahead Before Widespread Adoption

The effort by some non-agency MBS investors to create an entity to protect investors took a step forward as a sample deal-agent agreement was circulated late last week in advance of the ABS East conference in Miami. A deal agent would be tasked with protecting the interests of investors in non-agency MBS, including duties of care and loyalty. The leaders of the effort, James Callahan, a principal at Pentalpha Global and Alessandro Pagani, head of securitized assets at Loomis Sayles & Company, said the market should adopt the agreement as the template for new non-agency MBS. However, the sample agreement leaves...


September 15, 2016 - Inside Mortgage Finance

Home-Equity Lending Up Sharply in 2Q16 to Post-Crisis Record, But Portfolios Still Shrinking

Mortgage originators reported a sharp increase in home-equity lending during the second quarter of 2016, although it wasn’t as robust a gain as the 34.2 percent surge in first-lien originations. Lenders generated an estimated $53.5 billion in home-equity business during the second quarter, an increase of 18.9 percent from the first three months of the year. It was the strongest quarterly production number for the HEL market since the financial crisis. Halfway through 2016, home-equity lending was up 15.9 percent from last year and tracking toward $200 billion in annual production. Although home-equity lending has strengthened over the past few years as house prices have recovered to pre-crisis levels, the outstanding supply of home-equity debt continues...[Includes three data tables]


September 9, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


September 9, 2016 - Inside Nonconforming Markets

Redwood Plots Growth with ‘Choice’ Program

The looser underwriting standards Redwood Trust rolled out earlier this year for jumbo mortgages are aimed at aggregating loans that banks won’t necessarily acquire, according to officials at the real estate investment trust. Redwood introduced its “Choice” program in April, allowing for credit scores as low as 661, debt-to-income ratios as high as 49.99 percent and combined loan-to-value ratios up to 90.0 percent. The characteristics aren’t all allowed on the same loan. For a ...


September 9, 2016 - Inside Nonconforming Markets

Wells Fined $185 Million for Cross-Selling Practices

Wells Fargo was hit with fines totaling $185.0 million this week for secretly opening unauthorized accounts for customers at the bank. Regulators said the bank’s incentives for cross-selling financial products pushed employees at Wells to open unwanted deposit and credit card accounts for customers of the bank. The fines were imposed by the Consumer Financial Protection Bureau ($100.0 million, the largest penalty ever imposed by the CFPB), the city and county of Los Angeles ...


September 9, 2016 - Inside Nonconforming Markets

Bank Retained-Mortgage Portfolios Keep Growing, Few Jumbos Going in MBS

Bank and thrift holdings of first-lien mortgages increased by 2.4 percent in the second quarter of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. The holdings were boosted by jumbo mortgages, with few of the loans being delivered into mortgage-backed securities. Banks and thrifts held $1.90 trillion in first liens as of the end of June, up $44.22 billion from the end of March. Some $101.00 billion in jumbos were ... [Includes one data chart]


September 9, 2016 - Inside MBS & ABS

Issuance of MBS Backed by New Nonprime Mortgages Flourishing as Lone Star Preps Its Second Deal

Lone Star Funds is preparing to issue a $216.97 million MBS backed by newly originated nonprime mortgages, according to presale reports published this week. The deal will help the market for new nonprime MBS outpace issuance of jumbo MBS, at least momentarily. Last month, Deephaven Mortgage issued a $154.33 million MBS backed by new nonprime mortgages and Angel Oak Capital Advisors issued a $132.65 million MBS, neither of which received credit ratings. Lone Star’s COLT 2016-2 is scheduled to close next week. Two jumbo MBS were issued...


August 26, 2016 - Inside FHA/VA Lending

Purchase Lending Fires Up FHA in First Half, Refis Push VA Volume

FHA saw a modest rise in originations midway through 2016 compared to the same period last year, but VA did a lot better with a double-digit increase in loan production, according to an analysis of Ginnie Mae data. Lenders delivered $123.0 billion of FHA-insured loans to Ginnie pools during the first half of 2016, up 8.4 percent from the previous year. FHA’s midyear production was driven by a surge in purchase-mortgage lending in the second quarter, which also pushed volume higher for VA as well as conventional-conforming mortgages. Government-backed lending rose 32.3 percent from the first quarter to approximately $131.0 billion in second-quarter originations, according to Inside Mortgage Finance, an affiliate publication of Inside FHA/VA Lending. It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the ... [2 charts]


August 26, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


August 26, 2016 - Inside Nonconforming Markets

Luther Burbank Pushing Jumbo Non-QMs

Officials at Luther Burbank Savings see promise in the types of jumbo mortgages that many larger banks aren’t willing to originate in significant numbers: non-qualified mortgages. Jason Pendergist, president of consumer and commercial banking at Luther Burbank, said there’s a “massive opportunity” in non-QM jumbo mortgages. He said Luther Burbank focuses its originations on prime jumbo borrowers and first-time homeowners. Big banks have been willing to offer ...


August 26, 2016 - Inside Nonconforming Markets

Redwood Denies Rumor of Jumbo MBS Suspension

Redwood Trust has no plans to suspend issuance of jumbo mortgage-backed securities, according to Kristin Brown, a vice president and head of investor relations at Redwood. The Redwood official was responding to a report by Asset-Backed Alert, which cited anonymous sources claiming that the real estate investment trust will issue a jumbo MBS during the third quarter then “pull back from the market indefinitely.” Brown said that while additional transactions are always ...


August 26, 2016 - Inside Nonconforming Markets

Jumbo MBS from Chase Includes Many Non-QMs

JPMorgan Chase is preparing to issue a $302.27 million jumbo mortgage-backed security where non-qualified mortgages will account for 20.2 percent of the loan balance, according to presale reports. All of the mortgages in the planned JPMorgan Mortgage Trust 2016-2 were originated by First Republic Bank via the retail channel. Most prime MBS issued since QM standards took effect in 2014 have been backed solely by QMs and the few deals that have included non-QMs tend ...


August 26, 2016 - Inside Nonconforming Markets

Jumbo Originations Increase Sharply In 2Q16 as Big Banks Battle for Loans

Strong competition among big banks helped increase originations of jumbo mortgages during the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $101.0 billion in jumbos were originated in the second quarter, up 31.2 percent from the previous quarter. Through the first half of 2016, an estimated $178.0 billion in jumbos were originated, a 7.9 percent increase from the first half of 2015. Jumbo mortgages ... [Includes one data chart]


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