RPM Mortgage announced last week that it is offering jumbos with balances of up to $2.5 million for no-limit cash-out refinances or home purchase. Fully amortized and interest-only payment options are available. The lender said it will hold the loans in portfolio. “Between extremely low interest rates and smart prices for homes, either on the move-up market or creating liquidity for investment purposes, this product has the ability to serve both types of borrowers,” said Rob Hirt, CEO of RPM Mortgage. “This exclusive RPM product was eleven months in the making and is our contribution toward helping the real estate market to get back on its feet.” [Includes three briefs]

Origination of FHA-insured mortgage loans exceeding $417,000 were concentrated mostly in five states in 2011 even as jumbo loan production dropped further on both monthly and year-to-year bases, according to Inside FHA Lending’s analysis of the latest FHA data. California, New York, Virginia, New Jersey and Maryland accounted for 85.7 percent of the FHA jumbo market in 2011, with lenders reporting $18.2 billion in total originations, down 34.9 percent from 2010 and 2.5 percent from the third to the fourth quarter. California led all states in 2011 in FHA jumbo origination ($8.73 billion) and market share (48.0 percent). Production on a quarterly basis was ... [Two charts]

Mortgage lenders appeared to have no problem taking up the slack after Fannie Mae and Freddie Mac high-cost loan limits were lowered in the fourth quarter of 2011. Fannie Mae, Freddie Mac and Ginnie Mae financed 36.6 percent of the loans exceeding $417,000 that were originated in the fourth quarter of last year, according to a new Inside Mortgage Finance analysis. That was down from a 42.7 percent agency share of the jumbo market in the previous quarter. The key factor was the reduction in the top Fannie/Freddie loan limit from $729,750 to $625,500, which (Includes two data charts)...

The mortgage servicer American Home Mortgage Servicing Inc. recently announced a name change to Homeward Residential, reflecting its entrance into the correspondent and warehouse lending market in October 2011. AHMS ranked 18th on a list of top mortgage servicers in 2011 compiled by affiliated publication Inside Mortgage Finance. The company serviced $69.02 billion in residential mortgages at the end of 2011, down 9.7 percent from the year before, with most of its business in non-agency mortgages. The company plans to complete its rebranding as Homeward Residential by the second quarter of 2012. The business...

Originations of non-agency jumbo mortgages increased 32.1 percent in the fourth quarter, aided by a modest reduction in Fannie Mae and Freddie Mac loan limits in high-cost markets and a surge in refinance lending. An estimated $37.0 billion in jumbos were originated in the fourth quarter, lifting annual production to $118.0 billion in 2011, a 13.5 percent increase from the previous year. It was the jumbo market’s best year since 2007 for origination volume, and jumbos accounted for 8.7 percent of total mortgage lending ... [Includes one data chart]

Wells Fargo announced last week that it will increase its originations of non-agency jumbo mortgages and home-equity loans. The loans will be held in portfolio, at least initially. “The market has changed and we are adapting with it to add more horsepower to help homeowners and home buyers succeed financially,” said Brad Blackwell, newly promoted to portfolio lending business manager at Wells Fargo Home Mortgage. Wells said Blackwell’s team will work closely with the Community Bank and the Wealth Brokerage and Retirement groups at Wells to assure ...

Acquisitions boosted Ocwen Financial to the top subprime servicer spot at the end of 2011, according to a new ranking and analysis by Inside Nonconforming Markets. However, that was not the only significant movement among the top five subprime servicers, as American Home Mortgage Servicing changed more than its name. Ocwen serviced an $84.73 billion subprime portfolio at the end of 2011, a whopping 49.9 percent increase compared with the end of 2010. During that time, the amount of subprime mortgages outstanding decreased by 9.2 percent to an estimated $545.0 billion ... [Includes one data chart]

With the economics of non-agency securitization uncertain, Redwood Trust announced this week that it is considering bulk sales of newly originated non-agency jumbo loans in lieu of securitization. The real estate investment trust said it plans to issue four to six mortgage-backed securities this year – including the one completed in January – depending on whether the REIT sells a portion of its whole loans on a bulk basis. The business decision to either securitize or sell whole loans will be based on balancing ...

The largest private-owned nonbank mortgage company is trying to launch an initial public offering for an affiliated business that will use the capital to amass an investment portfolio in non-agency jumbo mortgages. Provident Mortgage Capital Associates was created by Provident Funding Associates, a privately held mortgage banker that ranked 12th in loan originations in 2011, the second largest nonbank lender in the industry. While PFA will remain privately held, it will manage operations at the publicly traded PMCA and ...

At least five firms revealed recently that their non-agency mortgage-backed security activity is under investigation by the Securities and Exchange Commission and/or the Department of Justice. The firms are Ally Financial, Citigroup, Goldman Sachs, JPMorgan Chase and Wells Fargo. The companies revealed little about the topic of the investigations, though some are related to mortgage securitization and disclosures while others relate to potential origination or underwriting fraud ... [Includes four briefs]