The jumbo market’s share of first-lien production narrowed in the fourth quarter of last year.

Redwood Trust reported a $21 million profit in the fourth quarter that was attributed to the company’s push to boost its liquidity for 2024.

A sharp drop in jumbo originations in the fourth quarter of 2023 saw the sector’s market share of total first-lien originations narrow. (Includes data table.)

A $576.1 million MBS backed by GSE-eligible jumbo mortgages from CalCon Mutual Mortgage helped drive a slight increase in prime non-agency mortgage-backed security issuance in the fourth quarter. (Includes three data tables.)

Liquidity challenges over the past year are expected to cause banks to sell jumbo loans to aggregators at a discount this year.

While the retail channel remained the predominant source for jumbo lending, originations through the channel fell 9.0% from the second to the third quarter. Correspondents and brokers gained share. (Includes data table.)

LoanNex reported an increase in non-QM pricing scenarios in October as borrowers are more willing to lock loans in the current interest rate environment.

The FHFA increased the baseline conforming loan limit by 5.6% for 2024, while new research finds increasing conforming loan limits impacts home prices and loan volumes.

High interest rates and tighter credit boxes led to a decrease in originations of non-agency jumbos in the third quarter of 2023. (Includes data table.)

Chase remained the top servicer of jumbo mortgages in the third quarter of this year, followed by Wells Fargo. (Includes data table.)