Originations of interest-only mortgages increased in the second quarter, but not enough to move production ahead of the pace set halfway through 2017, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 15 lenders originated $5.08 billion of IOs in the second quarter, a 25.2 percent increase from the previous period. Through the first six months of the year, the lenders had $9.13 billion of IO originations ... [Includes one data chart]
Issuance of expanded-credit mortgage-backed securities is moving at a steady pace, but deal sizes are declining and loan seasoning is increasing, suggesting a slowdown in originations. Redwood Trust is set to issue a $362.7 million deal, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. It’s the fourth expanded-credit MBS of the year from Redwood, including a $520.5 million issuance in May and a $417.0 million deal in July. The average seasoning ...
Originations of adjustable-rate mortgages increased by 25.0 percent on a quarterly basis in the second quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $55.0 billion of ARMs were originated in the second quarter. The increase looks to be tied to seasonal factors and trends in interest rates. Through the first half of 2018, an estimated $99.0 billion of ARMs were originated, down 2.0 percent from ... [Includes one data chart]
Chimera Investment is preparing to issue a non-agency mortgage-backed security in which all the loans are eligible for sale to the government-sponsored enterprises. The deal is backed solely by mortgages on investment properties, according to presale reports by DBRS and Moody’s Investors Service. The deal follows a similar issuance in May by Flagstar Bank as industry analysts suggest that non-agency MBS offer issuers better execution than delivering some types of ...
JPMorgan Chase is changing the servicing-fee structure in its latest prime non-agency mortgage-backed security. Many of the loans will be subject to a variable servicing fee as opposed to the flat fee traditionally used by Chase and many other issuers. Some 80.1 percent of the unpaid principal balance of the planned $513.9 million issuance is subject to the variable fee, a structure that is more commonly seen on MBS backed by nonperforming mortgages. The servicing fee will ...
New Penn Financial launched a non-agency product for condominiums last week. The SmartCondo offering allows for two non-warrantable features, which are characteristics that exclude the loans from being delivered to Fannie Mae or Freddie Mac. For example, New Penn will allow a higher portion of commercial space, reduced pre-sale requirements and increased flexibility for single-entity ownership, among other features. The mortgages are available for ... [Includes one brief]
Originations of government-insured mortgages rose 11.2 percent from the first to the second quarter of 2018, according to Inside Mortgage Finance estimates. That increase was slightly lower than the 17.1 percent gain in total first-lien originations over that period. The big winner for the second quarter was the jumbo sector, where loan volume surged 33.5 percent from the first three months of the year. On a year-to-date basis, government lending was down 12.6 percent from the first half of 2017. This reflects the steep decline in refinance lending in general, which affected FHA/VA production significantly. Jumbo lending was also down, by 6.6 percent, from the first six months of last year, but the conventional-conforming market saw a 4.2 percent gain at the midway point in 2018. FHA/VA loans accounted for 22.8 percent of first-lien originations in the first half of 2018. The government share for all of last year was ... [Chart]
Improved loan-sale execution in the non-agency market has taken a bite out of the conforming-jumbo business at Fannie Mae and Freddie Mac, a new Inside Mortgage Finance analysis reveals. [Includes three data charts.]
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