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 ...

The non-qualified mortgage share of Impac Mortgage Holding’s total originations has increased significantly in the past year. The nonbank lender has enhanced its marketing efforts for such loans as the volume of conventional refinances has declined. Non-QMs accounted for 40.9 percent of Impac’s $853.2 million total originations in the third quarter of 2018 compared with 11.5 percent of $2.08 billion of originations a year ago. Impac’s non-QM originations increased 45.9 percent to $349.2 million ...

Ocwen Financial plans to boost its servicing portfolio and possibly originate nonprime mortgages now that it has acquired PHH Corp. Ocwen is by far the largest servicer of subprime mortgages but the nonbank to this point hasn’t focused its origination efforts on the portfolio. It has also been under servicing-acquisition constraints set by various regulators for years due to issues with its servicing practices. “We’re excited about the opportunity to resume growth activities, as permitted by ...

Fannie Mae and Freddie Mac continue to let their holdings of nonprime mortgages gradually taper off, according to a new analysis by Inside Nonconforming Markets. The government-sponsored enterprises held a total of $91.01 billion of nonprime mortgages at the end of September, largely in purchased/guaranteed loans originated before the financial crisis. The holdings were down by 21.2 percent on an annual basis. In the past year, Fannie has ... [Includes one data chart]

Trends in underwriting expanded-credit mortgages differ from what’s happening in the broader market, according to a new analysis by Inside Nonconforming Markets. Lenders have generally started to loosen standards for debt-to-income ratios and loan-to-value ratios as originations decline and the product mix shifts from refinances to purchase mortgages. However, in the expanded-credit market, credit characteristics were largely stagnant in the past year ... [Includes one data chart]

A test of the jumbo mortgage-backed security market by Wells Fargo went well enough that the bank plans to regularly issue deals after avoiding the market for years. “Based on the positive response from investors to Wells Fargo’s recent private residential MBS transaction and given acceptable market conditions, we expect to do periodic offerings of private residential MBS going forward,” said Tom Goyda, a spokesman for the bank. The $441.3 million issuance from Wells that closed ...

FHA-approved servicers will now find it easier to file a Home Equity Conversion Mortgage claim under revised HECM rules announced by the Department of Housing and Urban Development last week. The new requirements apply to HECM loans that have reached 98 percent of their maximum claim amount, according to Mortgagee Letter 2018-08. The revised rules took effect on Oct. 22, but HUD will accept public comments for a period of 30 calendar days. Compliance experts say the change is good news for a program that has been experiencing substantial losses and lower volumes. Significant revisions were made last year to cut losses and make the product more efficient, but they have not been enough, said FHA Commissioner Brian Montgomery. Under the revised rules, HECM servicers can use alternative supporting documentation in lieu of previously required materials that ...