During the second quarter, Fannie Mae, Freddie Mac and the Veterans Affairs home loan guaranty program all saw significant increases in production of “agency jumbo” loans – mortgages with loan amounts exceeding the baseline $417,000 agency loan limit. A new Inside Mortgage Finance analysis reveals that the agencies’ combined jumbo production, including FHA activity, rose 53.3 percent to $36.2 billion during the second quarter. That represented the highest quarterly total since “emergency” high-cost loan limits were established in the aftermath of the financial crisis. The FHA had...[Includes three data tables]
The effort by some non-agency MBS investors to create an entity to protect investors took a step forward as a sample deal-agent agreement was circulated late last week in advance of the ABS East conference in Miami. A deal agent would be tasked with protecting the interests of investors in non-agency MBS, including duties of care and loyalty. The leaders of the effort, James Callahan, a principal at Pentalpha Global and Alessandro Pagani, head of securitized assets at Loomis Sayles & Company, said the market should adopt the agreement as the template for new non-agency MBS. However, the sample agreement leaves...
Tom Hutchens, SVP of sales and marketing at Angel Oak, said originations of nonprime non-QMs have predominantly been purchase mortgages. However, refinance activity is starting to increase…
Five years have passed since the Federal Housing Finance Agency filed suit against 18 Wall Street firms and banks for peddling nonprime MBS to Fannie Mae and Freddie Mac in the years leading up to the housing crisis. All of the defendants have settled or lost with one glaring exception: Royal Bank of Scotland. As for when (and if) RBS will settle, that’s a different and complicated matter. The bank is presently owned by the British government, which took control of it during the financial crisis. In other words, any settlement might entail taxpayer money and cause a political controversy in the U.K. And the bill could be...
JPMorgan Chase is set to end another lull in the issuance of jumbo mortgage-backed securities. The $395.40 million JPMorgan Mortgage Trust 2016-3 is scheduled to be issued next week, according to a presale report from Fitch Ratings. The most recently issued jumbo MBS priced in mid-August and was also from Chase. Only two firms with active conduits have issued jumbo MBS this year: Chase and Redwood Trust. Two Harbors Investment and WinWater Home Mortgage issued ...
Originations of interest-only mortgages increased significantly in the second quarter of 2016, particularly at PHH Mortgage, according to a new ranking by Inside Nonconforming Markets. A group of 12 lenders had $12.65 billion in IO originations in the second quarter, up 44.7 percent compared with the previous quarter. A large amount of the increase in volume was driven by PHH, which more than doubled its IO originations in that span. PHH had $6.25 billion ... [Includes one data chart]
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