Redwood Trust, which helped pioneer the return of the jumbo mortgage-backed securities market earlier in the decade, reported net earnings of $33.0 million for the second quarter, down 29.7 percent from the previous period.

Citadel Servicing Corp., Irvine, CA, originated $389.3 million of non-qualified mortgages during the second quarter, a 32.3 percent sequential gain, according to figures the company provided to Inside Nonconforming Markets this week.

Some post-crisis jumbo mortgages that experienced a foreclosure or other liquidation led to large losses even though the properties experienced significant home-price appreciation, according to an analysis by Kroll Bond Rating Agency.

loanDepot is an “average” originator of prime jumbo mortgages and loans eligible for sale to the government-sponsored enterprises, according to Moody’s Investors Service.

Accounting issues related to a prior acquistion led to a $97.4 million net loss for the second quarter at Impac Holdings, the nonbank reported this week. Despite significant challenges in the market, the company managed to boost its production of home loans that don’t meet the qualified-mortgage standard.

The government-sponsored enterprises’ holdings of vintage nonprime mortgages continued a gradual decline during the second quarter of 2018, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]

The first prime jumbo mortgage-backed security to be issued in the third quarter of 2018 won’t close until more than a third of the way through the quarter. Redwood Trust is set to issue a $329.7 million deal, which is somewhat smaller than other prime jumbo MBS from Redwood this year.

VA home-loan guarantee volume rose in the first half of 2018 thanks to a second-quarter surge in purchase business. New VA loan guarantees totaled $89.9 billion at midyear, a 7.5 percent improvement from the same point last year. VA production was even stronger quarter-over-quarter, with $50.9 billion in originations, up a whopping 30.2 percent from the first quarter. Purchase loans accounted for 68.1 percent of VA guarantees in the second quarter, up 23.1 percent from the prior quarter. Purchase for the first six months of 2018 was up 19.5 percent from a year ago. VA refi business struggled in the second quarter as production fell 7.0 percent from the previous period, dropping the overall refi share to 31.9 percent. Most of the damage in VA production in the second quarter was in the Interest Rate Reduction Refinance Loan program, where volume tumbled 42.8 percent from the previous ... [Chart]

A legislative proposal to charge veterans, servicemembers and military spouses more for a VA home loan is getting heat from lenders and the Department of Veterans Affairs itself. Testifying before the Senate Committee on Veterans Affairs last week, Paul Lawrence, VA undersecretary for benefits, warned that increasing VA loan fees would impose additional financial burdens on veterans who are trying to buy a home, making them more vulnerable to predatory lending. Fee-related proposals are included in H.R. 299, the Blue Water Navy Vietnam Veterans Act of 2017. The House of Representatives passed the bill by a vote of 382-0 in June and it is currently under consideration in the Senate. H.R. 229 would expand disability benefits to Vietnam veterans who were exposed to Agent Orange while serving on U.S. ships offshore or on the ground in Thailand and the Korean demilitarized ...

The appraisal industry is opposed to a legislative proposal that would make changes to how appraisals are procured for the VA home loan program. The appraisal measure is one of the key provisions in H.R. 299, the Blue Water Navy Vietnam Veterans Act, which the House of Representatives passed by a vote of 382-0 in June. The bill is now pending in the Senate Committee on Veterans’ Affairs. The Blue Water Act would clarify presumptions relating to veterans’ exposure to herbicide, such as Agent Orange, during the Vietnam era and disability claims. The bill also proposes changes to the VA loan fee structure, including a proposed hike to the fees veterans, servicemembers and their spouses pay to obtain a VA-guaranteed home loan. The appraisal provision in H.R. 299 would allow VA appraisers to engage a third party to perform property inspections on their behalf. The provision addresses a problem with ...