Jumbo conduits such as Credit Suisse and Redwood Trust are working to increase the number of correspondent lenders they work with as the non-agency jumbo mortgage-backed security market starts to rebound. The conduits offer attractive execution for lenders that don’t want to hold jumbo originations in portfolio, according to industry participants. Jumbo conduits are “a real business that’s going to be in this for the long term,” said Peter Sack, a managing director at Credit Suisse, during a webinar hosted by Inside Mortgage Finance late last week. Some $3.9 billion in non-agency jumbo mortgage-backed securities were issued...

The volume of new business flowing through Fannie Mae and Freddie Mac – a lagging indicator of primary market originations – declined modestly during the second quarter of 2013, according to a new analysis and ranking by Inside Mortgage Finance. The two government-sponsored enterprises securitized $337.74 billion of single-family mortgages during the second quarter, down 5.1 percent from the first three months of the year. The decline reversed an upward trend in quarterly GSE production that started in the third quarter of 2012. Even with the downturn, business at Fannie and Freddie was up 20.0 percent over the first six months of last year. The second-quarter decline clearly reflected...[Includes three data charts]

Credit Suisse issued a non-agency jumbo MBS backed predominantly by seasoned mortgages from First Republic Bank.

The Federal Reserve will go ahead with proposed rule changes related to mortgage servicing rights, but with what it calls a “lengthy transition period.”

Spreads have widened significantly on non-agency jumbo MBS in recent weeks, cutting into issuers’ profits.

According to exclusive figures compiled by Inside Mortgage Trends, Citigroup had $748 million of disputed buybacks with the GSEs at March 31.

Authorizing the FHA to shift mortgage-servicing rights from one processor to another could have a ripple effect on Ginnie Mae servicing rights.

When rates shot up quickly, were some MBS investors caught behind the eight-ball?

Deep-freezing the Home Equity Conversion Mortgage program’s full-draw, fixed-rate standard product apparently has not diminished borrowers’ appetite for reverse mortgages as indicated by a significant increase in HECM originations in the first quarter of 2013. FHA endorsements under the HECM program surged 36.2 percent during the first three months of 2013, with lenders reporting $3.84 billion at the end of the quarter, according to Inside FHA Lending’s analysis of FHA data. Volume was also up a modest 5.3 percent from the same period a year ago. The Department of Housing and Urban Development announced the ... [1 chart]

An FHA proposal for new legislative authority to transfer servicing has raised concerns among industry participants, particularly in the Ginnie Mae market. Authorizing the FHA to shift mortgage-servicing rights from one servicer to another could have a ripple effect on Ginnie Mae servicing rights and also adversely impact state mortgage servicing and origination licenses, some say. The bottom line is that Congress should consider FHA’s request for new statutory authority with great care, said Larry Platt, a compliance attorney and a partner at the Washington law firm K&L Gates. “We would hope that ...