Origination trends for non-agency jumbo mortgages were stronger than total mortgage originations in the first quarter of 2013, according to a new ranking by affiliated publication Inside Mortgage Finance. Lenders increasingly see jumbos as an attractive product and a number of smaller players are entering the market or growing their originations. An estimated $54.0 billion in non-agency jumbos were originated in the first quarter of 2013, down 1.8 percent from the previous quarter ... [Includes one data chart]

The new non-agency jumbo mortgage-backed security from JPMorgan Chase has been described as both encouraging and puzzling by non-agency participants. The $442.54 million non-agency MBS shows that Chase thinks the non-agency securities market – largely the domain of nonbanks since 2010 – is strong enough for the bank to issue its second jumbo security this year. Non-agency MBS participants have welcomed the competition, noting that activity from a big bank such as Chase could prompt greater ...

An increase of 10 basis points in the guaranty fees charged by the government-sponsored enterprises would make pricing for agency execution comparable to pricing for non-agency mortgage-backed security issuance, according to industry analysts. Agency g-fees averaged about 50 bps at the end of 2012, with plans for further increases this year. “The economics of non-agency securitization are much closer to GSE securitizations today than they were two years ago,” according to analysts at Barclays Capital ...

Stonegate Mortgage has plans to compete with banks for non-agency jumbo originations and warehouse lending. The company announced recently that it raised $115 million in a private offering of its stock, with plans for the proceeds largely tied to jumbos. “We intend to grow our originations and servicing portfolio by expanding to all 48 contiguous states by year-end,” said Jim Cutillo, Stonegate’s CEO. “We also recently launched a non-agency jumbo loan program and an integrated warehouse ...

The Obama administration extended the deadline to apply for the Home Affordable Modification Program and related loss mitigation program through the end of 2015. The programs under the Making Home Affordable Program were scheduled to expire at the end of this year. HAMP has seen somewhat limited activity among non-agency servicers, even with incentive payments for principal forgiveness. Some $22.7 billion in Troubled Asset Relief Program funds are targeted for non-agency HAMP activity ... [Includes one data chart]

The Consumer Financial Protection Bureau issued a final rule this week creating a fourth category of “qualified mortgages,” expanding on exemptions for small portfolio lenders. Certain small lenders will be allowed to receive QM protections for originations with interest rates higher than allowed for general QMs and the loans won’t have to meet the 43 percent debt-to-income ratio standard. The CFPB said the exemption will allow for originations of non-agency mortgages. “The bureau continues to believe that ...

Two years after being announced, a judge is set to rule on Bank of America’s proposed $8.5 billion settlement involving non-agency mortgage-backed securities. The ruling will set a precedent for other non-agency MBS issuers facing repurchase requests, according to industry analysts. “Either the deal goes through and becomes a template for how to extract oneself from this mess, or it gets rejected and signals that far more pain is coming down the pike,” said Isaac Gradman ...

FirstREX is offering a slight wrinkle on “80-10-10” loan structures by taking an equity stake in the home, recording a second lien, while foregoing monthly payments from the borrower. It remains to be seen whether its “HomeBuyer” product will catch fire nationally. The privately held firm is helping consumers buy a home by providing up to half the downpayment. In marketing materials, the company is careful to point out that it isn’t a lender and that its program shouldn’t be construed as being part of a ...

The funds participating in the Public-Private Investment Program ended their asset purchases in the fourth quarter of 2012 and generated strong returns on investments in non-agency mortgage-backed securities. While Public-Private Investment Funds can retain their holdings through 2017, most have liquidated their portfolios. Nine funds participating in the PPIP purchased $24.9 billion in MBS, largely vintage non-agency MBS along with some commercial MBS. At the end of the ... [Includes one data chart]

Legislation to reform the government-sponsored enterprises is starting to appear in the Senate. Last week, Sen. Johnny Isakson, R-GA, introduced S. 1048, similar to the “Mortgage Finance Act” he introduced in 2011. The bill would revoke the charters of Fannie Mae and Freddie Mac upon resolution of their obligations and create a new Mortgage Finance Agency for securitization. Sens. Bob Corker, R-TN, and Mark Warner, D-VA, are also working on a bill that would replace Fannie and ... [Includes two briefs]