Over the past two years, upwards of $1 billion has been raised by private-equity funds seeking to buy servicing rights in the secondary market.

The jumbo features that Moody's worries about include super senior support bonds, exchangeable securities, principal-only bonds, and pool interest-only bonds.

PHH saw its share price spike late last week after rumors spread that it may sell a large block of mortgage servicing rights.

Nationstar's new filing with the Securities and Exchange Commission offers little in the way of information on the terms of the new $1 billion facility.

The firm estimates that upwards of $300 billion of MSRs are currently on the auction block with another $1 trillion to $2 trillion to come.

The Federal Home Loan Bank of Chicago has announced a partnership with Ginnie Mae to issue securities guaranteed by the secondary market agency and backed by home loans originated by member financial institutions. The new conduit product, “MPF Government Mortgage-Backed Securities,” provides another secondary mortgage market outlet for lenders originating mortgages insured by the FHA or guaranteed by the VA or the Rural Housing Service. Low-volume lenders that currently lack direct access to the secondary market are expected to benefit from the new FHLBank program. MPF GMBS would allow lenders to ... [1 chart]

A number of companies are preparing to enter the non-agency jumbo mortgage-backed security market, bolstered by expected decreases to agency loan limits and eventual resolution of the conservatorships of the government-sponsored enterprises. David Akre, a managing director at Five Oaks Investment, said licensing for the real estate investment trust’s jumbo operations is nearly complete and the establishment of warehouse funding is 90 percent complete. David Carroll, CEO of Five Oaks, said increased competition ...

PennyMac Corp. wanted to test the market for non-agency jumbo mortgage-backed securities but it wasn’t generating enough collateral through its conduit program and turned to a bulk purchase to get a critical mass. The $550.46 million PMT Loan Trust 2013-J1 is set to receive AAA ratings with credit enhancement of 7.75 percent for the top-rated tranche. Some 70.7 percent of the mortgages to be included in the deal were acquired in bulk from Bank of America, which aggregated the loans from ...

Shellpoint Partners is preparing to issue a $308.64 million non-agency jumbo mortgage-backed security and officials at the firm are hoping that interest rates stay calm at least until the issuance is completed. Interest rates spiked after Shellpoint offered its first jumbo MBS in June, a $261.58 million deal, prompting the company to voluntarily provide credit enhancement of 20.0 percent on the security – double what was required by the rating services – in an effort to attract investors. The latest deal features ...

A reduction in agency loan limits would make a small portion of today’s mortgage market ineligible for the government-sponsored enterprises, according to a new analysis by Inside Nonconforming Markets. However, industry participants suggest that lower loan limits will help increase participation in the non-agency market and test whether the sector can take even more share from Fannie Mae and Freddie Mac. Mortgages with loan balances greater than $417,000 accounted for ... [Includes one data chart]