The threshold for what constitutes a jumbo mortgage will increase by 6.9 percent in 2019 as the Federal Housing Finance Agency set new loan limits this week. The baseline conforming loan limit for the government-sponsored enterprises will increase to $484,350 from $453,100 in 2018, and for most high-cost areas, the limit will rise to $726,525 from $679,650. The FHFA annually adjusts loan limits for mortgages delivered to Fannie Mae and Freddie Mac based on its home price index ...

Most major servicers of jumbo mortgages increased their portfolios in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Combined, 30 servicers handled an estimated $1.06 trillion of jumbo mortgages as of the end of September, up 2.7 percent sequentially and 10.7 percent from a year ago. Only four of the servicers posted lower jumbo portfolios on an annual basis, and one of the firms, Ocwen Financial, is under ... [Includes one data chart]

Among the top 15 servicers of subprime mortgages, only one grew its portfolio over the 12 months prior to the end of September, according to a new ranking and analysis by Inside Nonconforming Markets. The increase was posted by Citadel Servicing Corp., which is boosting its portfolio with originations of nonprime mortgages. Citadel handled a subprime portfolio with an unpaid principal balance of $1.80 billion as of September-end. The portfolio grew ... [Includes one data chart]

Two mortgage-backed securities with non-qualified mortgages originated by Impac Mortgage Holdings are in the works, according to presale reports released last week. An affiliate of Starwood Capital Group plans to issue a $280.0 million MBS with loans solely originated by Impac, while Deephaven Mortgage plans to issue a $374.3 million deal with production from 77 lenders, led by Impac with a 14.7 percent share. Among nine mortgage-backed securities ... [Includes two briefs]

Home Equity Conversion Mortgage originations saw a modest 4.7 percent sequential fall in the third quarter as the downward volume trend for reverse mortgages continued. [Includes one data chart.]

The Department of Housing and Urban Development is planning to conduct an inventory of occupants of homes with a Home Equity Conversion Mortgage loan originated prior to 2014 to help protect non-borrowing spouses from eviction in the event of the HECM borrower’s death. The status of non-borrowing spouses (NBS) remains an issue with HUD relative to HECM books of business predating 2014, when the program did not provide protections to spouses of deceased HECM borrowers, FHA Commissioner Brian Montgomery said during a press briefing this week. Prior to August 2014, only borrowers over the age of 62 could be on the HECM note and on the title of the home. The policy created a problem for non-borrowing spouses, who could face eviction if the older spouse passed away. The HECM borrower’s death is deemed a “maturity event” that renders the loan due and payable. This meant that the ...

Originations of non-agency jumbo mortgages fell more than overall mortgage production, prompting the sector to lose market share in the third quarter, according to a new analysis by Inside Nonconforming Markets. An estimated $76.0 billion of non-agency jumbos were originated in the quarter, down 5.0 percent from a quarter ago. Total first-lien originations fell by 2.2 percent, according to Inside Mortgage Finance. Jumbos accounted for 17.5 percent of total ... [Includes one data chart]

Among the four main mortgage products, only originations of expanded-credit loans increased on a quarterly basis in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Originations of expanded-credit loans rose 10.5 percent in the third quarter. The sector includes non-qualified mortgages, nonprime loans, mortgages with alternative documentation and any other non-jumbo mortgages not eligible for delivery to ... [Includes one data chart]

The latest jumbo mortgage-backed security from JPMorgan Chase differs significantly from others deals issued by the company. The $459.3 million MBS is stocked with mortgages that have relatively high loan-to-value ratios. The average combined LTV ratio for loans in JPMorgan Mortgage Trust 2018-LTV1 is 86.2 percent and nearly every mortgage has an LTV ratio greater than 79.0 percent. The average combined LTV ratio on prime non-agency MBS issued in the third quarter of 2018 was ...

Strong demand in the secondary market for jumbo mortgages lifted Redwood Trust’s mortgage banking income during the third quarter even though the volume of loans it acquired declined. Redwood had $11.24 million in non-interest income from mortgage banking activities in the third quarter, up 5.9 percent from the previous quarter. The metric tracks Redwood’s loan aggregation and sales. The real estate investment trust’s jumbo conduit acquired mortgages with an unpaid principal balance ...