Originations of purchase mortgages outpaced refinances in the jumbo market in 2014, according to a new ranking and analysis by Inside Nonconforming Markets of Home Mortgage Disclosure Act data. Some $135.88 billion in jumbo purchase mortgages was reported under HMDA in 2014, accounting for 60.6 percent of loans that exceeded agency conforming loan limits, including those in high-cost markets. In 2013, purchase mortgages accounted ... [Includes two data charts]

Caliber Home Loans is touting its non-agency product line as a way to provide mortgages to borrowers with less-than-pristine credit who cannot qualify for conforming loans. The nonbank is backed by Loan Star Funds, which has raised more than $1.0 billion for funding non-agency mortgages, according to William Pendleton, senior vice president of portfolio lending at Caliber. “We believe we are in the best position of all major lenders to remain on the cutting edge of product ...

Access to advances from the Federal Home Loan Banks have helped Redwood Trust operate its jumbo conduit, including adding to portfolio capabilities, according to officials at the real estate investment trust. Like other REITs, Redwood gained access to FHLBank advances via a captive insurance subsidiary. RWT Financial was approved as a member of the FHLBank of Chicago in the second quarter of 2014. In July, the FHLBank advance financing capacity for Redwood’s subsidiary increased by $400 million to $1.4 billion. “We’ve been able to more efficiently finance

Nonbanks comprised a significant portion of Ginnie Mae business as independent mortgage companies replaced banks as primary securitizers of FHA and VA loans. In the third quarter of 2015, mortgage companies accounted for 60.8 percent of VA loans and 67.1 percent of FHA loans securitized in Ginnie pools. For mortgage companies, production of Ginnie mortgage-backed securities backed by FHA loans increased by 5.0 percent in the third quarter from the previous quarter and was up a whopping 118.1 percent during the first nine months of 2015 over the same period last year. Nonbank securitization of VA loans rose by a modest 1.5 percent quarter over quarter and by 83.6 percent over the nine-month period compared to the same period last year. Megabanks, whose assets exceed $1 trillion, were the second largest issuers of Ginnie Mae MBS, accounting for less than ... [3 charts]

Some observers say the reduction in the annual mortgage insurance premium earlier this year has put the FHA Single Family Mutual Mortgage Insurance Fund on an accelerated path to recovery. Whether that is enough to get the fund back to its statutory 2 percent capital reserve ratio remains to be seen. The FHA is getting stronger faster, said Brian Chappelle, a mortgage industry consultant, in an analysis foreshadowing the FHA’s November actuarial report on the state of the MMIF. Last year’s independent actuary projected FHA’s total loan production in 2015 at $124 billion, but the MIP cut has led to a 60 percent increase in the volume forecast, said Chappelle. In all likelihood, the FHA could be looking at more than $200 billion in total originations this year, he predicted. “When a business lowers its prices, it’s going to make it up in volume,” the consultant noted. “Thus, FHA revenue is going to be ...

The number of VA loans with a deficiency fell in April from March but was up 71.7 percent from the same period a year ago, according to the VA Lender Report Card. The report card includes VA loan reviews and deficiencies by month from April 2014 through April 2015. VA loan originations over the one-year period totaled 563,967, the report showed. Of those loans, 303,149 were purchase loans, 162,447 were streamlined refinances, and 98,371 were cash-out refis. A total of 39,037 loans were reviewed by VA, which comprised about 7.0 percent of total volume. Altogether, 14,793 loans (37.9 percent) had deficiencies. The average deficiency response time was 28.1 days. Of the 1,726 loans the VA examined in April, 613 (35.5 percent) contained deficiencies, down from 1,234 loans (33.7 percent of 3,662 loans reviewed) that were found with flaws in March. The number of deficient loans found in ...

A VA mortgage servicer must immediately schedule an inspection and protect a property securing a VA loan if the property has been left vacant or abandoned by its owners. According to new guidelines issued by the VA, loan servicers must conduct an inspection immediately after becoming aware that the property’s physical condition may be in jeopardy. If local codes require more extensive protection than what VA requires, servicers should adhere to local requirements, the agency said. Failure to protect and preserve the collateral may result in a reduced guaranty claim if the servicer’s failure increased the VA’s liability on the loan. Unless the loan is undergoing loss mitigation, a property inspection is also required before the 60th day of delinquency or before starting foreclosure, whichever is earlier, the VA said. In addition, a property inspection will be required at least once a month after ...

The much-anticipated $150 million nonprime MBS deal from Angel Oak Mortgage Solutions appears to have hit a brick wall with concerns arising over representations and warranties on the transaction, according to one high-level source who claims to have knowledge of the deal. Both Angel Oak and the underwriter, Nomura Securities, this week once again did not return several media inquiries on what might have gone wrong. Originally, the bond – a privately issued transaction – was slated for sale to investors sometime in September but never came off. The source, who spoke to Inside MBS & ABS under the condition his name not be used, said...

The volume of jumbo mortgage-backed securities issued in the third quarter of 2015 fell 17.7 percent compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. It was the second consecutive quarterly decline for jumbo MBS issuance after production hit $4.60 billion in the first three months of the year. Five issuers combined to issue $2.56 billion in jumbo MBS in the third quarter. Two of them increased ... [Includes one data chart]

Moves by two players in the jumbo market demonstrate that competition for originations of jumbo mortgages remains strong. Officials at Titan Capital Solutions have confirmed that the firm will cease its correspondent funding operation for jumbos. “We made the decision as the space was becoming really crowded and those entering the space have much bigger, deeper pockets than Titan,” said Ruth Lee, the lender’s executive vice president. “It was a great channel ...