The latest jumbo mortgage-backed security planned by JPMorgan Chase is smaller than other deals recently issued by the firm. J.P. Morgan Mortgage Trust 2018-1 will be a $463.7 million issuance. A similarly structured deal from Chase in December had a volume of $883.8 million, which followed a $911.0 million deal in October. All three MBS share similar characteristics, with Chase as the top contributor and loans that seasoned for an average of three months at the time of issuance ...

Issuance of non-agency mortgage-backed securities backed by new originations increased on an annual basis in 2017, with gains from prime jumbo MBS and expanded-credit MBS, according to a new ranking and analysis by Inside Nonconforming Markets. A total of $10.88 billion of prime jumbo MBS was issued during the year, up 16.7 percent from 2016. Expanded-credit MBS – which include mortgages with alternative documentation, non-qualified ... [Includes one data chart]

Redwood Trust is set to issue two prime jumbo mortgage-backed securities in January, according to presale reports published this week. Issuance of two similar deals in quick succession by one firm is relatively uncommon, but Redwood appears to see strong demand from investors and has mortgages to sell. Sequoia Mortgage Trust 2018-1, a $341.25 million issuance, is scheduled to close on Jan. 19. A $462.01 million MBS, Sequoia Mortgage Trust 2018-2, is penciled in for Jan. 25 ...

After issuing nonprime mortgage-backed securities with post-crisis record-breaking sizes, the latest deal from Lone Star Funds will be slightly smaller. The firm is set to issue a $401.21 million nonprime MBS this month, according to presale reports by DBRS and Fitch Ratings. COLT 2018-1 Mortgage Loan Trust follows a $426.18 million issuance from Lone Star in September. That was the largest nonprime MBS backed by post-crisis originations. All of the loans in the previous issuance ...

Institutional investors are getting more comfortable with non-qualified mortgages, according to Angel Oak Capital Advisors. The firm announced last week that it raised $291 million in capital commitments for a private credit fund that will focus on non-QMs. The initial fundraising goal for Angel Oak Real Estate Investment Fund I was $250 million, according to AOCA. Officials weren’t willing to disclose how the fund will invest in non-QMs, but it has been involved in non-agency ...

While mortgage originations overall declined through three quarters in 2017, production of adjustable-rate mortgages increased slightly from the same period in 2016, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $161.0 billion of ARMs were originated in the first three quarters of 2017, up 2.5 percent compared with 2016. Total mortgage originations declined by 10.1 percent in that span ... [Includes one data chart]

As the dust settles from tax reform legislation passed at hyper speed at the end of 2017, industry analysts project that demand for jumbo purchase mortgages will take a hit. The Tax Cuts and Jobs Act reduced the amount of new debt eligible for the mortgage interest deduction. For purchase mortgages taken out on Dec. 15, 2017, and beyond, only $750,000 of debt will be eligible for the interest deduction. Previously, the limit was $1.0 million. Additionally, deductions from federal taxes for ...

PennyMac Financial Services launched its broker origination channel this week. While the company hasn’t originated many jumbo mortgages in the past year, it said the broker channel “will provide opportunities to grow volumes in attractive segments,” including jumbos. Carrington Mortgage Services recently launched some nonprime products in its wholesale channel. The lender allows for credit scores as low as 500 and loan amounts up to ... [Includes five briefs]

Borrowers looking to convert home equity into cash could lean toward cash-out refinances rather than home-equity loans due to changes in the newly enacted tax bill.

Issuance of prime non-agency mortgage-backed securities will increase next year, according to predictions from various industry analysts. Some see a gradual increase while analysts at Kroll Bond Rating Agency said volume could double when including so-called expanded-prime MBS. Kroll said prime non-agency MBS issuance could hit nearly $20.0 billion in 2018. “Assuming that spread tightening across structured finance remains at or near current levels, execution may continue to favor ...