Affluent borrowers seeking jumbo mortgages have high expectations in terms of customer service. Lenders looking to work with such borrowers should establish specialized standards, according to an industry analyst.
Retail remained the predominant source of jumbo originations in 2022. Changes in the makeup of the market are expected as Wells Fargo recently exited the correspondent channel. (Includes data chart.)
An effort by big banks to prop up First Republic Bank triggered downgrades by rating services and only temporarily paused the decline in the bank’s share price. The bank is considering various strategic options.
Prime jumbos are unlikely to account for the majority of non-agency MBS issued this year, a first for the products since the time before the financial crisis. Non-QM MBS issuance is holding up better and second-lien securitizations are building some momentum.
The jumbo sector lost some market share in the fourth quarter of 2022. Banks are tightening underwriting standards and seeing diminished demand for the products. (Includes data chart.)
Jumbo servicing portfolios at many of the largest firms in the sector increased in both the fourth quarter and on an annual basis. Low prepayment rates helped to keep loans in portfolio. (Includes data chart.)
Two new issuers are offering expanded-credit MBS, there’s a securitization backed by newly-originated second liens and the jumbo MBS market is showing more signs of life.
Occupancy fraud on jumbos; FoA to sell its business-purpose lending unit to Roc Capital; new CEOs at two leading fix-and-flip lenders; new COO at Deephaven.