BofA no longer reports mortgage earnings separately in its quarterly results. Residential finance is housed in the company’s community banking division, which reported net income of $3.3 billion in 3Q19, a slight gain from the prior period.

Industry analysts attribute the rise to a search for yield by investors along with increased acceptance of non-QMs in the investor community.

After the transaction closes, business-purpose lending investments will account for more than 15% of Redwood's investment portfolio, up from a 4% share.

The megabank – a bellwether for the residential finance industry – also reported that mortgage banking income fell 38.5% sequentially to $466 million...

Keep in mind that, Ginnie MBS is back-stopped by the full faith and credit of the U.S. government. By comparison, Fannie Mae/Freddie Mac MBS carry an “implied” guarantee.

Those in favor of the concept include: JPMorgan Chase, PennyMac Financial Services, the Housing Policy Council and the Structured Finance Association…

The VA program saw the sharpest spike in refi activity, shooting up 69.7% from the second quarter.

The new MBS differs in some ways from previous expanded-credit issuance from Annaly, including a reduced reliance on mortgages from Banc of California and an increase in investment-property loans.

“We’re trying to be holistic about this,” said FHFA Director Mark Calabria, “which obviously means it takes time.”

Expanded-credit MBS issuance (the sum of nonprime and Alt A) hit $9.90 billion in the third quarter, a 60.8% jump from the previous period.