Strong competition among big banks helped increase originations of jumbo mortgages during the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $101.0 billion in jumbos were originated in the second quarter, up 31.2 percent from the previous quarter. Through the first half of 2016, an estimated $178.0 billion in jumbos were originated, a 7.9 percent increase from the first half of 2015. Jumbo mortgages ... [Includes one data chart]

The market for mortgage-backed securities backed by newly originated nonprime mortgages received a jolt this month as Angel Oak Capital Advisors and Deephaven Mortgage separately issued new deals, according to offering documents obtained by Inside Nonconforming Markets. Angel Oak Mortgage Trust I, LLC 2016-1 was backed by mortgages with an unpaid principal balance of $132.65 million and Deephaven Residential Mortgage Trust 2016-1 was ...

JPMorgan Chase is preparing to issue a $302.27 million jumbo mortgage-backed security where non-qualified mortgages will account for 20.2 percent of the loan balance, according to presale reports. All of the mortgages in the planned JPMorgan Mortgage Trust 2016-2 were originated by First Republic Bank via the retail channel. Most prime MBS issued since QM standards took effect in 2014 have been backed solely by QMs and the few deals that have included non-QMs tend ...

Redwood Trust has no plans to suspend issuance of jumbo mortgage-backed securities, according to Kristin Brown, a vice president and head of investor relations at Redwood. The Redwood official was responding to a report by Asset-Backed Alert, which cited anonymous sources claiming that the real estate investment trust will issue a jumbo MBS during the third quarter then “pull back from the market indefinitely.” Brown said that while additional transactions are always ...

Officials at Luther Burbank Savings see promise in the types of jumbo mortgages that many larger banks aren’t willing to originate in significant numbers: non-qualified mortgages. Jason Pendergist, president of consumer and commercial banking at Luther Burbank, said there’s a “massive opportunity” in non-QM jumbo mortgages. He said Luther Burbank focuses its originations on prime jumbo borrowers and first-time homeowners. Big banks have been willing to offer ...

The new nonprime mortgage-backed securities from Angel Oak Capital Advisors and Deephaven Mortgage included a number of mortgages with compliance issues relating to the TILA-RESPA Integrated Disclosure rule, according to offering documents obtained by Inside Nonconforming Markets. Part of the compliance issues stem from the ongoing uncertainty regarding cures for minor errors. While the Consumer Financial Protection Bureau issued a proposed rule ...

FHA saw a modest rise in originations midway through 2016 compared to the same period last year, but VA did a lot better with a double-digit increase in loan production, according to an analysis of Ginnie Mae data. Lenders delivered $123.0 billion of FHA-insured loans to Ginnie pools during the first half of 2016, up 8.4 percent from the previous year. FHA’s midyear production was driven by a surge in purchase-mortgage lending in the second quarter, which also pushed volume higher for VA as well as conventional-conforming mortgages. Government-backed lending rose 32.3 percent from the first quarter to approximately $131.0 billion in second-quarter originations, according to Inside Mortgage Finance, an affiliate publication of Inside FHA/VA Lending. It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the ... [2 charts]

The nation’s subservicers increased their base of contracts to $1.615 trillion in the second quarter, a modest 1.6 percent gain from the prior period, but a handsome 17.0 percent improvement from the same period a year earlier, according to survey figures compiled by Inside Mortgage Finance. Overall, these third-party processing vendors – who split the monthly fee with the actual owner of the servicing strip – control 15.9 percent of all residential mortgage debt in the nation. A year ago the reading was 14.0 percent. And it’s...[Includes one data table]

Rushmore Loan Management Services, Irvine, CA – a subservicing specialist – plans to enter the origination market early next month, a rarity for firms whose forte is processing loans for others. Company CEO Terry Smith told Inside Mortgage Finance that the nonbank’s direct-to-consumer arm is scheduled to begin funding loans on Sept. 1. “Our focus will be on originating loans – and servicing those loans,” Smith said. He also noted...

Underwriting standards for jumbo non-qualified mortgages were largely unchanged in the second quarter of 2016 compared with the previous period, according to the Federal Reserve’s senior loan officer opinion survey. Some 53 respondents didn’t change their underwriting standards for the loans compared with the previous quarter, while three respondents loosened underwriting for the loans “somewhat” and two tightened somewhat. Four of the ... [Includes two briefs]