The market for jumbo mortgage-backed securities looks to be regaining some momentum as Shellpoint Partners plans to resume issuance and market-leader JPMorgan Chase prepares another deal. Shellpoint’s New Penn Financial is set to issue a $353.68 million jumbo MBS next week, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. Shellpoint Co-Originator Trust 2016-1 will mark the first issuance from the MBS shelf since ...

The Structured Finance Industry Group published the fourth edition of its “RMBS 3.0 Green Papers” this week. The trade group said it will release a fifth edition of the Green Papers in the coming weeks. The latest papers address various issues in the non-agency mortgage-backed security market, including representations and warranties, the concept of a deal agent and data disclosure. Moody’s Investors Service this month withdrew its assessment of ... [Includes two briefs]

Real estate investment trusts that focus on the residential MBS market reported a modest decline in agency MBS holdings during the third quarter, according to a new Inside MBS & ABS analysis. A group of 17 large, publicly traded mortgage REITs held a combined $217.24 billion of agency MBS at the end of September, down 1.2 percent from the mid-year mark. But the decline was largely due to shuffling in the ranks that resulted in two firms exiting the business. Annaly Capital Management completed...[Includes one data table]

Freddie Mac and Shellpoint Partners are preparing to price new securities in the aftermath of the presidential election, and Select Portfolio Servicing priced $600.0 million in an MBS backed by servicer advance receivables this week. Freddie is about to issue a Whole Loan Securities transaction, which would mark the second such issuance from the government-sponsored enterprise this year and the fourth overall, dating back to the first WLS transaction that closed in July 2015. The balance of the planned Whole Loan Securities Trust, Series 2016-SC02, is...

An affiliate of Shelter Growth Capital Partners issued its first nonprime MBS late last week, according to offering documents obtained by Inside MBS & ABS. The $113.71 million deal included non-qualified mortgages from a number of lenders. The mortgages in SG Residential Mortgage Trust 2016-1 were acquired by SG Capital Partners, an affiliate of Shelter Growth, an investment manager and hedge fund. SG Capital Partners started acquiring non-agency mortgages in January 2015. As of June 1, Shelter Growth had...

The government-sponsored enterprises are well on their way to trimming their retained mortgage portfolios to less than $250.0 billion each by the start of 2018. As of the end of the third quarter, Fannie Mae and Freddie Mac had a combined mortgage portfolio of $615.65 billion, down 3.3 percent from June. While Freddie historically had the larger retained holdings, the two portfolios are now roughly equal. Under the current terms of their conservatorship, Fannie and Freddie are required...[Includes one data table]

Investors said that market is in the “sweet spot” when it comes to mortgage credit, while speaking at a symposium in Washington sponsored by the Urban Institute and CoreLogic this week. John Vibert, managing director and co-head of structured products for Prudential, said his company is much more interested in financing nonperforming loans than in owning such assets. “We think...

Barclays plc is reportedly working out a deal with the Department of Justice for a much lower settlement amount to resolve non-agency MBS and ongoing multi-agency investigations of other mortgage-related matters, according to a recent Bloomberg report. Citing a source “with knowledge of the situation,” the news service said the London-based bank has rejected an initial amount offered by the DOJ, aiming instead to limit the settlement to no more than $2 billion, possibly less. The report didn’t disclose the amount DOJ offered, although industry observers speculated it might be significantly more than what the firm is willing to pay. Like many U.S. and European banks, Barclays was...

An affiliate of Shelter Growth Capital Partners issued a $113.71 million nonprime mortgage-backed security last week, according to offering documents obtained by Inside Nonconforming Markets. SG Residential Mortgage Trust 2016-1 is the first MBS from Shelter Growth’s SG Capital Partners. Shelter Growth is an investment manager and hedge fund with $1.08 billion in assets under management as of June 1, according to a filing with the Securities and Exchange Commission ...

Purchase mortgages accounted for a large share of the loans in prime non-agency mortgage-backed securities issued during the third quarter of 2016, according to an analysis by Inside Nonconforming Markets. Purchase mortgages accounted for 67.3 percent of the $4.07 billion in prime non-agency MBS issued during the quarter. That was the highest quarterly share for purchase mortgages since at least the first quarter of 2013. The purchase-mortgage ... [Includes two data charts]