Parkside Lending announced this week that it’s offering a new low-downpayment jumbo mortgage product that includes an option for lender-paid mortgage insurance or borrower-paid MI. The new Jumbo III product joins other wholesale jumbo offerings from Parkside, including mortgages with combined loan-to-value ratios up to 95.0 percent with no requirement for MI. Blackstone Group increased its presence in the market for rental properties by launching Finance ... [Includes two briefs]

Invictus Capital Partners, an investment management firm, is preparing to issue a nonprime mortgage-backed security backed by newly-originated home loans from four different lenders, according to documents filed with the Securities and Exchange Commission this week. Covius, a due diligence provider, said it reviewed mortgages with an unpaid principal balance of $118.96 million for the planned Verus Securitization Trust 2017-1. The bulk of the contributions for the MBS were ...

There will likely be a notable increase in the issuance of mortgage-backed securities backed by newly originated nonprime mortgages, according to Fitch Ratings. As many as eight firms are looking to join Lone Star Funds in issuing rated deals, though issuance isn’t expected to get anywhere near the levels seen in the run up to the financial crisis. Some $999.5 million in nonprime MBS was issued in 2016, according to the rating service. “Fitch estimates those figures could double in 2017, and ...

Redwood Trust is moving relatively quickly to issue its second jumbo mortgage-backed security of 2017. The firm is planning a $347.85 million transaction, according to a presale report from Kroll Bond Rating Agency. Sequoia Mortgage Trust 2017-2 is scheduled to close Feb. 17, about a month after Redwood closed a $342.93 million issuance. The burst of activity suggests that Redwood is seeing relatively strong pricing for jumbo MBS. Officials at Redwood couldn’t comment on ...

Two banks dominated contributions to prime non-agency mortgage-backed securities issued in the past two years, according to a new ranking and analysis by Inside Nonconforming Markets. And a majority of the top 10 contributors to prime jumbo MBS were banks or affiliated with banks. JPMorgan Chase accounted for $4.58 billion of the prime mortgages included in prime non-agency MBS in 2015 and 2016, a 22.1 percent share of total issuance ... [Includes one data chart]

With the Federal Reserve expected to raise its benchmark overnight lending rate this year, interest rates on new mortgages are also projected to go up. Higher rates on mortgages are likely to cause a significant decline in prepayments on post-crisis jumbo mortgages and will increase default risk, according to Morningstar Credit Ratings. Within the first 12 months of origination, prepayment rates on post-crisis jumbos included in non-agency mortgage-backed securities have ...

The number of lenders offering mortgages to foreign-national borrowers has increased significantly in recent years. The product is seen as another way for non-agency lenders to differentiate themselves, though industry analysts warn that lending to foreign nationals involves some unique risks. A foreign national is a person that resides in a country where they’re neither a citizen nor permanent resident. Angel Oak Mortgage Solutions, Caliber Home Loans, Citadel Servicing ...

PennyMac Financial Services has significantly curtailed its originations of jumbo mortgages in recent years, and ended 2016 nearly out of the sector all together. PennyMac didn’t have any jumbo originations in the fourth quarter and as of the end of 2016, the nonbank only had $1.0 million in locked jumbos in its pipeline.Citigroup has entered into a subservicing agreement with Cenlar for the bank’s non-agency mortgages. Servicing is expected to be transferred ... [Includes four briefs]

The jumbo mortgage-backed security Redwood Trust is set to issue on Jan. 20 received improved pricing compared with the company’s previous deal issued in October. The new MBS is fairly similar to the prior bond, indicating stronger demand from investors. The $343.28 million Sequoia Mortgage Trust 2017-1 priced last week. The super-senior tranche priced 1-20 back of Fannie 3.5s, which was four ticks tighter than Redwood’s previous offering, according to an analysis by Wells Fargo Securities ...

Large swaths of investors will continue to avoid buying non-agency mortgage-backed securities unless Congress passes investor-friendly reforms, according to Chris Katopis, executive director of the Association of Mortgage Investors. “Private capital has virtually left the U.S. mortgage market,” he said. “The future is likely to reflect a similar situation unless Congress helps establish the necessary systems, structures and standards for private capital to return.” In a recent study published by ...