Investors interested in the jumbo mortgage-backed security from JPMorgan Chase that’s set to be issued next week received new disclosures with sometimes confusing information thanks to a rule from the Securities and Exchange Commission. JPMorgan Mortgage Trust 2015-4 will have a balance of $388.34 million, according to presale reports published last week by Kroll Bond Rating Agency and Moody’s Investors Service. A week before the presale reports ...

Industry participants largely support a plan from the Federal Housing Finance Agency for adjustments to the conforming loan limit. The $417,000 loan limit applicable to the government-sponsored enterprises could be increased as soon as January, depending on house-price appreciation trends over the next few months. The FHFA’s proposal said the regulator planned to use the “expanded data” house price index that the agency has published since 2011 to ...

Hatteras Financial has ramped up its efforts to acquire jumbo mortgages and plans to issue a jumbo mortgage-backed security before the end of the year, according to officials at the real estate investment trust. “Our portfolio plus commitments of jumbo [adjustable-rate mortgages] today is estimated to be about $258 million, so we’re making progress and nearing scale where we can consider securitization,” Benjamin Hough, Hatteras’ president and COO, said this week ...

The Consumer Financial Protection Bureau is considering revising income documentation standards to help borrowers that have nontraditional sources of income, according to Richard Cordray, the director of the agency. At a hearing last week by the Senate Committee on Banking, Housing and Urban Affairs, Sen. Mark Warner, D-VA, raised concerns about the income documentation standards included in Appendix Q of the CFPB’s ability-to-repay rule. Non-agency lenders ...

Parkside Lending recently “re-introduced” a non-qualified-mortgage product aimed at financing for investment properties. The lender said the “new and improved” Parkside Collateral Loan is available via the wholesale channel. Parkside said there is no borrower-related debt-to-income ratio calculation for the product. Instead, qualification is based on the property DTI ratio with a maximum of 90 percent. The loan allows for credit scores as low as ... [Includes three briefs]

New production of non-agency MBS declined sharply from the first quarter to the second quarter of 2015, although year-to-date issuance suggests that 2015 could top last year’s total output. Just $13.92 billion of non-agency MBS were issued during the second quarter, a 40.0 percent tumble from the first three months of the year. The first quarter of 2015 was the biggest quarter in non-agency MBS issuance since the second quarter of 2009. The biggest components of the market have been...[Includes three data tables]

Bond investing giant Pacific Investment Management Co., commonly known as PIMCO, is getting more serious about buying a mortgage franchise and has zeroed in on a mid-sized nonbank, according to industry officials who claim to have knowledge of the talks. But it’s not mortgage banking, per se, that PIMCO is ultimately interested in – it’s the MBS market. “PIMCO has been in the MBS game for many years, so I would think this is possible,” said industry consultant Paul Hindman. Hindman has...

Issuance of jumbo mortgage-backed securities leveled off in the second quarter of 2015 after posting strong gains in the previous three quarters, according to a new ranking and analysis by Inside Nonconforming Markets. Some $3.11 billion in jumbo MBS was issued in the second quarter, down 32.5 percent from the first three months of the year. After unexpected fluctuations in interest rates in mid-2013, jumbo MBS issuance averaged ... [Includes one data chart]

Two rating services in the past month have completed reviews of jumbo mortgage-backed securities issued in 2010 and later. The reviews led to numerous rating confirmations, some upgrades and no downgrades, prompting questions about whether criteria for rating jumbo MBS are too stringent. “I’d guess the rating services internally said ‘never again’ for downgrades,” said one participant in the jumbo MBS market. Officials at Fitch Ratings and DBRS ...

While a number of structural issues continue to limit activity in the non-agency mortgage-backed security market, reform of the government-sponsored enterprises would dramatically help the sector’s recovery, according to officials at the Securities Industry and Financial Markets Association. “Issuers and investors are not likely to build the infrastructure necessary for a vibrant private-label securities market until they have a better understanding of how the government’s role ...