Demand for non-agency products, including non-qualified mortgages, is growing among real estate investment trusts. A number of REITs have ramped up their investments in the non-agency sector, with some issuing mortgage-backed securities. Annaly Capital Management, the largest mortgage REIT, had $525.0 million in residential whole loans at the end of September, up from $392.0 million a year ago. The REIT didn’t disclose the total unpaid principal balance of its whole-loan holdings ...
The latest jumbo mortgage-backed security from JPMorgan Chase differs significantly from others deals issued by the company. The $459.3 million MBS is stocked with mortgages that have relatively high loan-to-value ratios. The average combined LTV ratio for loans in JPMorgan Mortgage Trust 2018-LTV1 is 86.2 percent and nearly every mortgage has an LTV ratio greater than 79.0 percent. The average combined LTV ratio on prime non-agency MBS issued in the third quarter of 2018 was ...
Strong demand in the secondary market for jumbo mortgages lifted Redwood Trust’s mortgage banking income during the third quarter even though the volume of loans it acquired declined. Redwood had $11.24 million in non-interest income from mortgage banking activities in the third quarter, up 5.9 percent from the previous quarter. The metric tracks Redwood’s loan aggregation and sales. The real estate investment trust’s jumbo conduit acquired mortgages with an unpaid principal balance ...
Waterfall Asset Management announced that it launched a residential mortgage conduit to focus on partnering with lenders to originate proprietary mortgage products under flow agreements. The conduit aims to purchase prime and near-prime mortgages with relatively high loan-to-value ratios. An affiliate of Caliber Home Loans is preparing to issue a $354.5 million nonprime mortgage-backed security, according to presale reports by DBRS and Fitch Ratings ... [Includes four briefs]
VA mortgage originations fell significantly in the third quarter of 2018 due to a decline in purchase loans and a sharp drop in refinancing from the previous quarter. Rising interest rates and regulatory restrictions were mostly to blame, said lenders. VA production during the third quarter was $40.2 billion, down 21.0 percent from the quarter ago. Volume in the first nine months of 2018 dropped a mere 0.7 percent from the same time period last year. Purchase loans, which comprised 75.3 percent of VA’s guaranty business, were down 12.6 percent. On the other hand, year-over-year production increased 14.0 percent. VA refinance was down 39.0 percent from the second quarter and 18.1 percent on a year-to-date basis. The decline was fueled primarily by an 80.8 percent drop in VA streamline refis or Interest Rate Reduction Refinance Loans from the second quarter. IRRRL endorsements in the third quarter ... [Charts]
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