JPMorgan Chase is set to issue another non-agency mortgage-backed security mixing jumbo mortgages and loans eligible for sale to the government-sponsored enterprises. DBRS, Moody’s Investors Service and S&P Global Ratings assigned preliminary AAA ratings to the planned $866.07 million JPMorgan Mortgage Trust 2018-3 this week. Some 1,348 loans will be included in the issuance, divided nearly evenly between jumbo mortgages and loans eligible for sale to the government-sponsored ...

Angel Oak Capital Advisors is preparing to issue its first non-agency mortgage-backed security of the year backed by non-qualified mortgages, according to documents filed with the Securities and Exchange Commission. Tiptree has an agreement to sell jumbo lender Luxury Mortgage in the second half of this year. The buyer and purchase price weren’t disclosed. Citadel Servicing recently loosened underwriting standards on a number of its nonprime ... [Includes four briefs]

Overall production of government-insured loans fell in all three origination channels in the fourth quarter as refinancing continued to decline in 2017. A survey of FHA, VA and rural housing lenders showed originations in retail, correspondent and broker conduits totaled $248.9 billion, down 11.8 percent from 2016. Correspondent production suffered the biggest quarterly decline, 14.9 percent from the third to the fourth quarter. Production in this channel also declined 4.8 percent for the full year. Approximately $139.3 billion of FHA and VA loans came through this channel last year. Notwithstanding the decline, the correspondent share of government-insured lending grew to 56.0 percent in 2017, up from 51.9 percent in 2016. Brokers saw their share of the government-insured market rise to 10.0 percent, even as quarterly and year-over-year originations declined by 2.0 percent and 10.7 percent ,,, [ Charts ]

Home Equity Conversion Mortgage lenders ended 2017 on a positive note, thanks to a relatively strong fourth quarter, according to an analysis of FHA data. Total reverse mortgage originations rose 3.0 percent from the third quarter to end the year with $18.4 billion in overall HECM production. This was up 23.2 percent year-over-year. Purchase HECMs accounted for 76.2 percent of reverse mortgage originations in 2017. Adjustable-rate HECMs comprised 89.3 percent of loans made. Meanwhile, HECM mortgage-backed securities issuance totaled $2.25 billion in the fourth quarter, buoyed by $1.35 billion of HMBS issued in December, Ginnie Mae data show. The top five HMBS issuers accounted for $5.72 billion or 31.1 percent of all HMBS issued in 2017. American Advisors Group remained the dominant HECM lender in 2017, producing $2.8 billion over the 12-month period, which represented a ... [ Chart ]

Some 1,348 loans will be included in the issuance, divided nearly evenly between jumbo mortgages and loans eligible for sale to the government-sponsored enterprises.

The planned $327.16 million issuance is largely stocked with current mortgages that haven’t been modified.

Nomura was serving as the lender’s investment banker on the deal…

Wells Fargo was the top home equity lender in 2017 with total second lien production of $24.8 billion, according to a tally from Inside Mortgage Finance…

“The short-term nature of the collateral paired with an attractive yield makes for a rare opportunity in today’s investing climate,” said Angel Oak’s Sreeni Prabhu…

The home-equity lending business quietly built some momentum over the past three years after nosediving in the aftermath of the housing-market meltdown, but its future growth will depend on several moving parts.