First Republic Bank maintained its lead as the top contributor to jumbo mortgage-backed securities issued in the first quarter of 2015, according to a ranking by Inside Nonconforming Markets. First Republic was identified as contributing $1.43 billion to jumbo MBS issued during the quarter, accounting for 31.0 percent of all jumbo MBS activity. The bank was also the top jumbo MBS contributor for all of 2014, with $1.46 billion in identified contributions ... [Includes one data chart]

Credit Suisse and Redwood Trust, the two dominant jumbo mortgage-backed securities issuers since 2010, continue to differ in terms of jumbo MBS offerings. While their latest deals include a number of similarities involving credit characteristics, the Redwood deal includes a relatively high share of non-qualified mortgages. The $356.45 million Sequoia Mortgage Trust 2015-2 received AAA ratings with credit enhancement of 5.00 percent on the senior tranche. That’s the lowest ...

Wells Fargo and JPMorgan Chase account for the vast majority of bank holdings of negative amortization mortgages, according to a new ranking and analysis by Inside Nonconforming Markets. Bank exposure to negative amortization mortgages continues to dwindle as originations of such loans largely stopped after the financial crisis. Large chunks of the holdings at Wells and Chase are due to acquisitions of Wachovia and Washington Mutual, respectively ... [Includes one data chart]

Walter Investment Management’s Green Tree Servicing agreed to pay $48 million for consumer redress and a $15 million civil money penalty due to a settlement with the Consumer Financial Protection Bureau and the Federal Trade Commission. The federal regulators alleged that Green Tree failed to honor modifications for loans transferred from other servicers, among other issues. The regulators said a large number of loans Green Tree acquired from ... [Includes two briefs]

FHA jumbo loan production dropped significantly in 2014, according to an Inside FHA/VA Lending analysis of agency data. The volume of jumbo loans insured by the FHA – loan amounts exceeding $417,000 up to the national ceiling of $625,500 – fell 41.9 percent from the prior year, and 4.4 percent in the fourth quarter of 2014 from the previous quarter. FHA jumbo production for 2014 totaled $10.5 billion, with purchase loans accounting for nearly 80 percent of volume and fixed-rate loans comprising 87.1 percent of jumbos originated last year. Seventy-two percent of lenders saw their jumbo volume decline, including Provident Savings Bank, which suffered the largest year-over-year drop (84.9 percent). An analysis of FHA endorsements by loan amount show that loans above $417,000 up to $499,000 accounted for 2.12 percent of loans endorsed in the first quarter. Additionally, loans from $500,000 to ... [1 chart]

The FHA Single-Family Policy Handbook’s effective date has been changed from June 15 to Sept. 14, 2015, the agency has announced. The affected sections include the following: Doing Business with FHA – Lenders and Mortgagees; Doing Business with FHA – Other Participants – Appraiser; and Quality Control, Oversight and Compliance. The section for Origination through Post Closing/Endorsement (OTPC/E) becomes effective for FHA case numbers assigned on or after Sept. 14. All applicable existing single-family handbooks, mortgagee letters and policy documents continue to apply until the OTPC/E section becomes effective, the agency said. A number of competing initiatives prompted the change of effective date. The FHA expects lenders to be fully compliant by Sept. 14. The FHA will continue to issue mortgagee letters periodically to ...

VA Clarifies HUD-1 Itemization Requirements. The Department of Veterans Affairs’ Home Loan Guaranty office has issued guidance clarifying HUD-1 documentation and itemization requirements. The HUD-1 is a statement lenders furnish to borrowers at closing showing the actual settlement costs, including amounts paid to and by the settlement agent. The guidance clarifies and establishes VA policy regarding the following: itemization of lender/seller credits in the 200 series of the HUD-1; itemization of line 801 on the HUD-1; clarification that credits reflected on line 803 of the HUD-1 cannot offset allowable fees’ and itemization of line 802 on the HUD-1. Ginnie Mae Announces Update to Securitization of USDA Section 538 Multifamily Loans. Ginnie Mae has enhanced the securitization of rural, multifamily housing loans with a Department of Agriculture guaranty to make affordable housing available to ...

Mortgage lenders originated an estimated $360.0 billion of first-lien home loans during the first three months of 2015, lifting the market to its strongest quarterly volume since the third quarter of 2013, according to a new Inside Mortgage Finance analysis and ranking. The first-quarter total originations estimate does not include home-equity lending, which many lenders consider a separate business from traditional mortgage lending. In the past, Inside Mortgage Finance included home-equity in total originations, and those market estimates are not being revised. In 2014, about 5.7 percent of total originations ($71.0 billion) were home-equity loans. A number of survey participants have reported...[Includes two data charts]

The Blackstone Group is on the hunt to buy mortgage companies, including both lenders and servicers, according to industry advisors and others who have been briefed on the company’s plans. Blackstone, without disclosure, recently purchased Gateway Funding in Horsham, PA, and is in negotiations to buy PMAC Lending Services, sources contend. It also is talking to a company that goes by the name of Pinnacle, though there are several firms with that name, and at press time it was unclear which one. Observers describe...

Firms hoping that new guaranty fee and loan-level price adjustments promulgated by the Federal Housing Finance Agency might boost the jumbo MBS market were sorely disappointed when the final details were released by the agency late last week. One executive who works for a real estate investment trust that issues jumbos said it’s clear to him that Fannie Mae and Freddie Mac are continuing to “misprice” their g-fees. He would love...