The strength of the non-agency jumbo market, at a time when securitization of these loans has slowed, suggests there is plenty of investor appetite for non-agency jumbos.

Bill King joined Carrington 18 months ago, but recently departed the firm, which is owned by a hedge fund.

The lift in jumbo mortgage production during the third quarter of 2013 came from the non-agency segment of the market, while new originations of “conforming jumbo” loans faltered, according to a new analysis and ranking by Inside Mortgage Finance. Fannie Mae, Freddie Mac and the FHA financed $25.48 billion in single-family loans that exceeded $417,000 during the third quarter, down 15.5 percent from the second quarter. Meanwhile, non-agency jumbo originations edged up 2.7 percent during the third quarter, hitting a six-year high. The strength of the non-agency jumbo market at a time when securitization of these loans has slowed...[Includes three data charts]

Originations of non-agency jumbo mortgages are stronger than the overall market, big banks are competing for wealthy borrowers and smaller firms are looking to enter the market. While jumbos originated in recent years have performed exceptionally well, Standard & Poor’s stresses that lenders should control their growth. “In our opinion, controlled growth is a key aspect to the comprehensiveness and ultimate success of an originator’s business strategy,” the rating service said in a recent overview of jumbo performance and best practices. “We believe that aggressive growth strategies could result in difficulties managing the quality of the origination process.” S&P noted...

A new type of subprime lending may be emerging and Ocwen Financial hopes to be a trailblazer.

The HUD NPL auction features 5,000 delinquent single-family loans totaling $1 billion in unpaid principal balances with representations and warranties.

In other subprime news, industry veteran Jon Daurio was recently in New York talking to potential investors about his new nonbank venture, Nikkael Capital Corp.

“Eminent domain may be a local matter, but in the context of seizing mortgages, its use would have national consequences,” the four senators write in their letter to Treasury Secretary Jack Lew.

The Alt A origination estimate is based on the volume of first-lien conventional mortgages with interest rates ranging from 150 basis points over the prime mortgage rate to 300 bps over.

Fannie Mae, Freddie Mac and Ginnie Mae still provide most of the funding for home loans originated in 2013, but the non-agency sector has been making a stealthy comeback, according to a new analysis and ranking by Inside Mortgage Finance. Conventional-conforming loan production declined by 24.5 percent from the second quarter of 2013 to the third quarter, dropping to an estimated $275.0 billion. Although that still accounted for 59.8 percent of total production for the period, it was the lowest quarterly volume in conventional-conforming lending since the third quarter of 2011. Government-insured lending continued...[Includes two data charts]