Announcements by two real estate investment trusts that are prominent in jumbo lending underscore two key themes in the market: increased competition and the lingering headache caused by the TRID disclosure rule. Redwood Trust recently launched an “expanded prime” program known as “Redwood Choice” for correspondent sellers. “The Choice program is a prime program that is fully documented, but with credit parameters outside our more recent underwriting guidelines,” Redwood said. Choice features...

Among the government-sponsored enterprises’ holdings of nonprime mortgages, non-agency mortgage-backed securities are declining much more quickly than purchased/guaranteed mortgages, according to an analysis by Inside Nonconforming Markets. The combined nonprime MBS holdings of Fannie Mae and Freddie Mac declined by 9.6 percent during the first quarter of 2016 compared with the end of 2015. The GSEs’ combined purchased/guaranteed holdings of subprime mortgages and Alt A mortgages declined by 4.1 percent in that time. Similar trends are evident on a yearly basis. MBS account...

Retail loan originations account for most new VA lending, but the correspondent channel plays an outsized role in the FHA market, especially in purchase-mortgage lending, according to a new analysis of Ginnie Mae mortgage-backed securities data by Inside FHA/VA Lending. Over half (51.1 percent) of VA loans securitized through Ginnie MBS in the first quarter of 2016 were retail originations, but only 39.1 percent of FHA loans came through that channel. The biggest source of FHA loans was correspondent lenders, which accounted for 45.8 percent of loans securitized during the first three months of this year. That was actually slightly below the 49.2 percent correspondent share of FHA loans back in 2014 and 46.8 percent last year. Correspondents accounted for well over half (53.9 percent) of FHA purchase mortgages during the first quarter, while playing a more ... [ 3 charts ]

Although Fannie’s year-to-date issuance was off 8.4 percent from a year ago, it was still ahead of Ginnie through the first third of 2016.

Ron D’Vari, CEO of New Oak Capital, said borrower demand for non-QMs is strong, but there are a number of hurdles to issuing MBS with the loans.

Fannie’s guaranty fee income for single-family and multifamily segments nudged up 0.9 percent from the fourth quarter, while Freddie’s was up 0.4 percent.

PHH said in a new SEC filing: “We will not be pursuing our previously communicated acquisition strategy at this time..."

G-fees – which have been rising in recent years – are ultimately paid by borrowers.

Two Harbors was the first – and thus far only – firm to issue a jumbo MBS with loans subject to the TRID mortgage disclosure rule.

Is the end near for servicing writedowns? Hedging marks?