The seasonal surge in primary market mortgage originations stood in stark contrast to a slump in new residential MBS issuance during the second quarter of 2017. Mortgage lenders originated an estimated $455.0 billion of new first-lien loans during the April-June cycle, an 18.2 percent increase from the first three months of the year, according to estimates by Inside Mortgage Finance. But the secondary market generated just $294.7 billion in MBS backed by purchase and refinance loans – a 5.3 percent decline. The result was...[Includes one data table]

Most rated residential MBS in regions affected by Hurricanes Harvey and Irma have limited exposure that will mitigate the losses resulting from the devastation, according to rating services. Residential MBS rated by Moody’s Investors Service, including securities backed by single-family rental properties, have minimal exposure to the storm-affected counties of Texas and Louisiana thereby easing the losses due to reduced property values, rising delinquencies and longer foreclosure and liquidation timelines, the rating agency said. The analysis is...

Redwood Trust is set to issue its first jumbo mortgage-backed security backed predominantly by loans with looser underwriting standards than the super-prime jumbos that have dominated the market. The planned $316.49 million Sequoia Mortgage Trust 2017-CH-1 includes many non-qualified mortgages and other loans that fall outside of Redwood’s traditional Select program. Kroll Bond Rating Agency and Moody’s Investors Service assigned preliminary AAA ratings to the MBS last week ...

Bank and thrift holdings of first-lien mortgages continued to increase in the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.97 trillion of first-lien mortgages at the end of June. The holdings were up by 1.9 percent from March and up 3.8 percent from a year ago. Trends in portfolio management were somewhat mixed among the top 10 holders of first-lien mortgages. Top-ranked Wells Fargo had ... [Includes one data chart]

Caliber Home Loans is on track to nearly double its originations of non-qualified mortgages this year and will supply the collateral for a forthcoming mortgage-backed security, the largest in the post-crisis era.Caliber plans to originate $1.00 billion of non-QMs this year, up from $539.0 million in 2016, according to DBRS. The nonbank lender has boosted its non-QM production across lending channels, led by wholesale. Caliber had $247.0 million in wholesale non-QM originations ...

The retail channel dominates production among prominent jumbo lenders and gained some market share through two quarters this year, according to a new analysis by Inside Nonconforming Markets. The retail channel accounted for 77.5 percent of jumbo originations among a group of lenders that had a total of $108.00 billion in jumbo volume in the first half of 2017. The retail share was 76.6 percent over the same period in 2016. The correspondent ... [Includes one data chart]

An affiliate of Shellpoint Partners is preparing to issue another jumbo mortgage-backed security backed largely by mortgages aggregated by Bank of America. The planned Shellpoint Co-Originator Trust 2017-2 is a $323.38 million deal that received preliminary AAA ratings this week. Nearly all of the mortgages were aggregated by BofA through its jumbo whole-loan purchase program and sold to Shellpoint in bulk deals. Loans from 17 lenders will be included in the pool, led by ...

Three non-agency mortgage-backed securities issuers were preparing to issue deals around the time that Hurricane Harvey hit the Gulf Coast and Hurricane Irma made landfall in Florida. Deals from the issuers include mortgages on properties in the disaster areas, prompting inspections and an emphasis on the representations and warranties included with the MBS. An affiliate of Shellpoint Partners is set to issue a $323.38 million deal on Sept. 29. According to Kroll Bond Rating Agency ...

Reverse mortgage originations with FHA insurance increased both on quarterly and year-over-year bases as lenders, led by nonbanks, moved into the Home Equity Conversion Mortgage market to boost their bottom lines. HECM originations were up 5.5 percent from the first to the second quarter, closing out the first six months with $9.3 billion in total originations. Production was up 25.8 percent at the halfway mark compared to last year. Purchase loans comprised approximately 82.9 percent of HECM volume during the first half of the year. Adjustable-rate HECMs remained the preferred reverse-mortgage product for the majority of borrowers. Despite increased originations, FHA data show HECM production in gradual decline since endorsements peaked at $114.7 billion in FY 2009. The top five HECM producers in the first quarter continued to hold on to their spots. American Advisors Group maintained its rank as ... [Charts]

The FHA will provide lenders that originate Home Equity Conversion Mortgage loans the option to view and print unsigned HECM counseling certificates in FHA Connection starting Sept. 18, 2017. While the lender may still take the initial loan application, the lender can only begin to process it once the counseling is complete, as evidenced by a completed HECM counseling certificate that contains signatures of both the counselor and borrower. Lenders that chose to use this option will be required to establish procedures to obtain and document authorization from the HECM borrower to access the counseling certificate in FHA Connection. In addition, lenders must certify that a borrower authorization to view the counseling certificate was obtained. Lenders must follow the guidance on processing HECM loans contained in the HUD Handbook, the FHA said. To access HECM counseling certificates, lenders will ...