The Federal Home Loan Banks may be required to jointly establish at least one entity to aggregate conventional mortgages and use a new government program to issue guaranteed MBS under draft legislation from Sen. Bob Corker, R-TN.

Analysts are expecting private capital to play a much greater role in housing finance in 2018 through both non-agency MBS and additional credit-risk transfers from the government-sponsored enterprises, according to Standard & Poor’s.

Losses on non-agency MBS backed by re-performing loans issued in recent years have been minimal, according to DBRS. Performance has been helped by home price appreciation, and the one deal to suffer significant losses was an outlier in terms of the types of loans it included.

Market share for lenders whose loans were included in prime jumbo mortgage-backed securities was much more dispersed in 2017 than the previous year, according to a new ranking and analysis by Inside Nonconforming Markets. JPMorgan Chase – the top issuer of jumbo MBS – remained the lender with the most collateral for new deals. But the bank reduced its jumbo deliveries by a whopping 65.1 percent from 2016 to just $1.58 billion last year. That was still tops in the market, accounting for 14.5 percent of the loans pooled in $10.88 billion of ... [Includes two data charts]

An affiliate of Invictus Capital Partners issued its latest nonprime mortgage-backed security this week and Deephaven Mortgage is preparing to close a deal. Invictus’s $249.0 million Verus Securitization Trust 2018-1 received AAA ratings from Morningstar Credit Ratings and S&P Global Ratings. Its senior tranche was supported by subordinated bonds equaling 37.5 percent of the deal. The loans had an average credit score of 700, an average combined loan-to-value ratio of 71.1 percent and ...

Nearly a year after an affiliate of Galton Funding issued its first expanded-prime mortgage-backed security, the firm is bringing a follow-up. The planned $316.9 million issuance is larger than the first deal from the firm and the MBS differ in some ways. Fitch Ratings and Kroll Bond Rating Agency placed preliminary AAA ratings on Galton Funding Mortgage Trust 2018-1. The deal will include credit enhancement of 10.75 percent on the senior tranche. The loans have a weighted-average credit score of ...

The latest jumbo mortgage-backed security planned by JPMorgan Chase is smaller than other deals recently issued by the firm. J.P. Morgan Mortgage Trust 2018-1 will be a $463.7 million issuance. A similarly structured deal from Chase in December had a volume of $883.8 million, which followed a $911.0 million deal in October. All three MBS share similar characteristics, with Chase as the top contributor and loans that seasoned for an average of three months at the time of issuance ...

New Penn Financial recently introduced a new non-agency program that allows for non-qualified mortgages and alternative documentation, among other features. The SmartEdge product includes loan amounts up to $3.0 million, credit scores as low as 620, debt-to-income ratios up to 50.0 percent and loan-to-value ratios as high as 90.0 percent. New Penn is in the process of being sold to New Residential Mortgage, a real estate investment trust. SmartSelf allows ... [Includes two briefs]

After a typical lull at the end of the year, issuance of non-agency MBS is coming fast and furious. A number of issuers are prepping deals backed by a variety of newly originated loans, including prime jumbo mortgages, expanded-credit mortgages and loans eligible for sale to the government-sponsored enterprises.

Non-agency MBS issuance had its best quarter of 2017 during the final three months of the year, boosting annual production 30.2 percent higher than in 2016, according to a new ranking and analysis by Inside MBS & ABS.