The jumbo mortgage-backed security market received a boost this week as a new issuer stepped into the ring. Teachers Insurance and Annuity Association of America is preparing to issue a deal this month, according to presale reports. TIAA, a multi-faceted enterprise with more than $1 trillion in managed assets, acquired EverBank in 2017 and rebranded the operations as TIAA, FSB. The bank is set to issue a $381.54 million jumbo MBS using EverBank’s MBS shelf registration ...

The delinquency rate on non-qualified mortgages in mortgage-backed securities remains low, as issuers are largely avoiding risk-layering. As of the end of 2017, the average current-to-delinquent roll rate for non-QMs in MBS seasoned for one year was 0.4 percent, according to Bank of America Merrill Lynch. Only three non-QM loans tracked by CoreLogic have liquidated so far, and none realized a loss. Non-QM MBS have thicker credit enhancement than ... [Includes one data chart]

A new expanded-prime mortgage-backed security from Redwood Trust is nearly 40.0 percent larger than the prior deal from the real estate investment trust. Redwood is set to issue the $444.29 million Sequoia Mortgage Trust 2018-CH-1, following a similar $320.30 million deal in November and a $307.64 million deal in September, the first from Redwood to focus on loans from the firm’s Choice program. Choice mortgages have slightly wider underwriting standards than ...

Flagstar Bank is set to issue its third jumbo mortgage-backed security in as many quarters, according to presale reports published this week. The bank plans to issue a $487.66 million deal, which follows a $576.44 million deal from October and a $443.79 million issuance in July. Underwriting characteristics across the three MBS are largely similar. The new issuance includes mortgages with an average credit score of 761, an average combined loan-to-value ratio of 67.4 percent and ...

PennyMac Financial will resume originating jumbo mortgages in the correspondent channel this year, the lender announced this week. And jumbos will be offered in the broker channel operations recently launched by PennyMac. The House approved a bill this week that would shrink the potential market for non-qualified mortgages. H.R. 1153, the Mortgage Choice Act, was approved on a 280-131 vote with some bipartisan support. The legislation would ... [Includes two briefs]

Complaints by active-duty and retired U.S. military personnel about their mortgages rose in many categories tracked, both on a quarterly basis and on an annual basis, according to a new analysis and ranking by Inside the CFPB. Overall, they are definitely trending up. For instance, complaints by service members about all mortgage products in general rose from 582 incidents in the fourth quarter of 2016 to 739 in the fourth quarter of 2017, but they fell from a total of 741 in the third quarter of last year. The increase was a little more consistent when particular mortgage products were segregated out from the aggregate data. For instance, gripes about conventional mortgages rose from 218 in 4Q16 to 334 [with charts] ...

Market share for lenders whose loans were included in prime jumbo mortgage-backed securities was much more dispersed in 2017 than the previous year, according to a new ranking and analysis by Inside Nonconforming Markets. JPMorgan Chase – the top issuer of jumbo MBS – remained the lender with the most collateral for new deals. But the bank reduced its jumbo deliveries by a whopping 65.1 percent from 2016 to just $1.58 billion last year. That was still tops in the market, accounting for 14.5 percent of the loans pooled in $10.88 billion of ... [Includes two data charts]

As earnings season got underway for publicly owned lenders, First Republic Bank, Flagstar Bank and Redwood Trust reported increased jumbo loan production in 2017. First Republic produced $11.57 billion of single-family mortgages in 2017, up 8.9 percent from the previous year. Jumbos account for a large majority of its lending. Flagstar originated $8.80 billion of jumbo loans last year, a 37.5 percent increase from 2016. And Redwood, which sources loans from correspondents, purchased ...

An affiliate of Invictus Capital Partners issued its latest nonprime mortgage-backed security this week and Deephaven Mortgage is preparing to close a deal. Invictus’s $249.0 million Verus Securitization Trust 2018-1 received AAA ratings from Morningstar Credit Ratings and S&P Global Ratings. Its senior tranche was supported by subordinated bonds equaling 37.5 percent of the deal. The loans had an average credit score of 700, an average combined loan-to-value ratio of 71.1 percent and ...

Nearly a year after an affiliate of Galton Funding issued its first expanded-prime mortgage-backed security, the firm is bringing a follow-up. The planned $316.9 million issuance is larger than the first deal from the firm and the MBS differ in some ways. Fitch Ratings and Kroll Bond Rating Agency placed preliminary AAA ratings on Galton Funding Mortgage Trust 2018-1. The deal will include credit enhancement of 10.75 percent on the senior tranche. The loans have a weighted-average credit score of ...