Income tied to residential servicing was down 27.7 percent for the 10 lenders as a group.

As adopted, Appendix Q of the QM rule requires items to be considered and verified for the two prior years, and requires well-documented projections for the following three years.

Investors have stepped up to the plate, buying new large bulk MSRs put out for auction by Interactive Mortgage Advisors.

Although 2013 will turn out to be a decent year in terms of residential production, next year could be quite ugly.

Investment funds are continuing to salivate over mortgage servicing rights.

Redwood Trust is ready to sell yet another jumbo MBS deal into the market.

Ginnie Mae officials have moved beyond whether they should consolidate the agency’s two MBS programs to how they should do it, but it remains much less certain that similar proposals to restructure the Fannie/Freddie market will take root. The newer Ginnie II MBS program has become significantly more popular than the original Ginnie I security, both in terms of new issuance and the outstanding supply of securities. Speaking at the Mortgage Bankers Association secondary market conference in New York this week, Ginnie President Ted Tozer said...

There appeared to be considerable enthusiasm at the Mortgage Bankers Association secondary market conference this week about the highly anticipated risk-sharing experiments by the government-sponsored enterprises – and some lobbying about the most suitable structures and participants. The first transaction is likely to be a senior-subordinate structure and be issued as a credit-linked note, rather than a conventional cash securitization, said Richard King, chief executive officer of Invesco Mortgage Capital. He said the deal will likely be syndicated...

Officials at Redwood Trust suggest that the change in pricing for AAA tranches on new non-agency MBS in recent months has been driven by supply and demand, not concerns about the quality of issuance. “The market had come too far, too fast, and the supply and demand imbalance initiated a correction,” Redwood said. The premium on Redwood’s latest transaction was about 1.75 percentage points above an interest rate benchmark, resulting in a 2.59 percent premium for investors. Redwood said deals it issued in January sold with premiums as low as 97 basis points with yields of less than 200 bps for investors. The real estate investment trust said...

As more firms contemplate issuing jumbo MBS, there are growing concerns that there could be a few speed bumps along the way, namely rising whole loan prices, and an increase in the cost of money for investors that use swaps to fund their purchases of the AAA-rated tranches. The increase in whole loan prices is less of a concern, because it was somewhat anticipated given the “hot” nature of the market. Over the past few months, prices for jumbo whole loans have risen to as high as 103, compared to 101 and 102 last year. Craig Cole, a jumbo consultant and a former top production manager at Union Bank, San Francisco, told...