Since 2008, big banks have largely held their non-agency jumbo originations in portfolio, seeing better execution than non-agency MBS issuance, but all that could be changing.

Even a fraction of the shadow inventory falling into foreclosure could considerably swell HUD and GSE ownership of REO properties.

According to industry sources, the FHA recently sent out administrative letters to a handful of residential lenders. Meanwhile, yet another new subprime originator has emerged.

The estimated $119 billion in purchase-mortgage originations during the first quarter was up 15 percent over the level at the same point in 2012.

Through the first quarter of 2013, 1.1 million borrowers have received permanent HAMP modifications, well below the 3 million to 4 million the Obama administration projected when launching the program in 2009.

The jumbo market is heating up with offerings from both EverBank and MountainView.

The revised rule excludes from the calculation of points and fees paid by a consumer to a mortgage broker when that payment has already been counted toward the points-and-fees thresholds as part of the finance charge.

Mark Savitt, president of the National Association of Independent Housing Professionals, told Inside Mortgage Finance that including “lender paid” compensation to brokers in the 3 percent cap is “double counting.

John Robbins is out at Bexil American Mortgage. Meanwhile, EverBank readies its second jumbo MBS deal of the year.

Non-agency MBS execution is competitive with agency MBS execution for purchase mortgages with loan-to-value ratios below 70 percent and credit scores above 740.