After declining for two consecutive quarters, the delinquency rate on jumbo mortgages increased in the third quarter of 2017, according to Black Knight. Hurricanes contributed to the uptick in delinquencies, and performance in the jumbo market remains strong overall. The delinquency rate on non-agency jumbo mortgages was 1.60 percent as of the end of September, according to Black Knight. That was up from 1.49 percent in the previous quarter ... [Includes one data chart]

Redwood Trust is looking to expand its footprint into funding originations by nonbanks as well as putting a greater emphasis on acquiring investment-property mortgages. The strategy announced this week was detailed one day after Redwood revealed that its CEO will retire in May. Officials said changes in the housing market have created opportunities for the real estate investment trust to “leverage our competitive strengths and expand our strategic mission.” They said funding ...

The conforming loan limit will increase again in 2018, prompting some pushback from supporters of the non-agency market. The conforming loan limit for one-unit properties in 2018 will be $453,100, up 6.8 percent from the current limit. For high-cost areas, the loan limit will be as high as $679,650 in 2018, up from $636,150 this year. The limits apply to acquisitions of mortgages by Fannie Mae and Freddie Mac, and annual adjustments are based on a house-price index ...

Tax reform legislation on track for enactment by the end of the year could have an outsized impact on the jumbo market, according to industry analysts. The House and Senate are currently working to reconcile differences between their versions of the Tax Cut and Jobs Act. A concern for jumbo lenders is that both versions of the bill would set a $10,000 limit for deductions relating to state/local property taxes and eliminate deductions for state/local income taxes. The House bill ...

The nonprime mortgage-backed security closed by Angel Oak Capital Advisors at the end of November was oversubscribed, according to Lauren Hedvat, director of capital markets at the firm. The $210.2 million AOMT 2017-3 was backed by mortgages originated by Angel Oak Mortgage Solutions, Angel Oak Home Loans and Angel Oak Prime Bridge. Non-qualified mortgages accounted for 83.9 percent of the dollar volume in the MBS. Angel Oak said it’s ... [Includes two briefs]

FHA this week announced a 6.8 percent increase in loan limits nationwide for 2018 with 26 counties seeing increases above the national rate. In high-cost areas, the loan-limit ceiling will rise to $679,650 from $636,150 in 2017, while the floor will increase to $294,515 from $275,665. In addition, the national mortgage limit for Home Equity Conversion Mortgages (HECMs) or reverse mortgages will rise to $679,650 from $636,150. FHA regulations do not allow HECM loan limits to vary by metropolitan statistical area or county. Instead, the single limit applies to all mortgages regardless of where the property is located, the agency explained. In between the floor and the ceiling is a broad band of loan limits for single-family forward mortgage loans set at 115 percent of median house prices. The forward limits vary according to MSA and county. The changes in the loan limits are the result of ... [ Chart ]

Jumbo mortgage production was up 9.6 percent in the third quarter, a slightly faster growth rate than the 8.8 percent increase in first-lien originations during that period, according to a new ranking and analysis by Inside Mortgage Finance.

Originations of jumbo mortgages increased in the third quarter of 2017 compared with the previous period, according to a new ranking and analysis by Inside Nonconforming Markets. But through nine months of the year, production was down compared with 2016 and the sector is losing market share as a handful of major lenders are seeing significant declines in their jumbo production. Demand for jumbo mortgages has declined somewhat, according to lenders ... [Includes one data chart]

A new, somewhat atypical, non-agency mortgage-backed security from JPMorgan Chase includes a large share of non-qualified mortgages and no fixed-rate mortgages. JPMorgan Mortgage Trust 2017-5 is a $671.7 million deal that received preliminary AAA ratings last week from Fitch Ratings, Kroll Bond Rating Agency and Moody’s Investors Service. The first four deals from Chase this year largely stuck with QMs and included a fair amount of mortgages eligible for sale to the ...

Originations of so-called expanded-credit mortgages among a group of 15 lenders were essentially level in the third quarter of 2017 compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. The lenders had a total of $10.61 billion of expanded-credit volume in the third quarter, up 1.7 percent from the previous quarter. Expanded-credit loans include non-qualified mortgages, nonprime mortgages ... [Includes one data chart]