Moody's: “This deal is unique in that the source of payments for the notes will be JPMorgan Chase Bank’s own funds, and not the collections on the loans or note proceeds held in a segregated trust account."

In mid-January, Charles Scharf, president and CEO of Wells, had indicated the bank was ready to resume activity on correspondent basis, but was noncomittal.

The characteristics of the mortgages are similar to the types of jumbos Flagstar was securitizing before the market was disrupted last year...

FHFA extended various origination flexibilities related to GSE mortgages through the end of March.

The decline was largely tied to income from investments while Redwood's lending units are generating returns above 20%.

After issuing a $345.40 million jumbo MBS in December, Redwood is in the market with a $527.40 million deal.

The new QM standards are set to take effect March 1 with a mandatory compliance date of July 1. Between March 1 and July 1 lenders can use the QM patch or the new standards but after July 1, originators can only use the new standards.

Its gain-on-sale margin came in at 305 basis points in 4Q20 compared to 110 bps in the year ago period. The nonbank also vowed to return “excess cash” to shareholders when possible, a reference to dividend payments.

The deal is sized at $146.2 million while previous MBS from Deephaven averaged closed to $400 million in volume.