Originations of non-agency jumbo mortgages continued to increase in the second quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. The growth was fueled by banks offering highly competitive interest rates in an effort to retain jumbos in portfolio. Wells Fargo was the top-ranked jumbo lender through two quarters in 2013, by a wide margin. The lender had $21.87 billion in jumbo originations in the first half of 2013, accounting for 19.4 percent of ... [Includes one data chart]
Federal regulators next week will propose a new version of the controversial rule setting risk-retention requirements for issuers of non-agency mortgage securities that are not backed by qualified residential mortgages. Among other significant changes, the new proposed rule will likely eliminate premium capture cash reserve account requirements, according to the American Securitization Forum. The Federal Deposit Insurance Corp. has a meeting scheduled for Aug. 28 to discuss ...
Two Harbors Investment is set to issue its first non-agency jumbo mortgage-backed security. The real estate investment trust is working on building its jumbo conduit operations, but in the meantime, Two Harbors plans to securitize mortgages it purchased from Bank of America. Two Harbors’ $434.17 million Agate Bay Mortgage Trust 2013-1 is set to receive AAA ratings with credit enhancement of 7.70 percent for the top-rated tranche. Mortgages to be included in the security have seasoned for ...
Fitch Ratings updated its loss model criteria for non-agency jumbo mortgage-backed securities this month, including new default estimates that vary by origination channel. Other rating services take the origination channel into account when rating new jumbo MBS, but not necessarily to the extent that Fitch has taken. “Fitch has determined that loans originated through a direct retail channel have a lower default risk than those originated through a broker, correspondent or wholesale channel,” the rating ...
Recent supervisory efforts by the Consumer Financial Protection Bureau have focused on “sloppy” servicing transfers and other loss mitigation issues. In a “supervisory highlights” review published this week, the CFPB said that between November 2012 and June 2013, it discovered several issues with servicing transfers that can cause borrowers to miss payments, delay important processes or affect the good standing of a borrower’s mortgage. The CFPB said its examiners found noncompliance with ...
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