Affluent borrowers seeking jumbo mortgages have high expectations in terms of customer service. Lenders looking to work with such borrowers should establish specialized standards, according to an industry analyst.

Retail remained the predominant source of jumbo originations in 2022. Changes in the makeup of the market are expected as Wells Fargo recently exited the correspondent channel. (Includes data chart.)

An effort by big banks to prop up First Republic Bank triggered downgrades by rating services and only temporarily paused the decline in the bank’s share price. The bank is considering various strategic options.

Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)

Non-agency MBS issuance slows; Fund That Flip forms REIT for bridge loans; Arc Home hires Sprout’s former chief production officer.

MISMO is working to update data fields established by the American Securitization Forum in 2009 for use in the non-agency MBS market.

Non-agency MBS issuance update; PennyMac launches jumbo product; Fitch affirms A&D’s servicer rating, Redwood increases staff.

The jumbo sector lost some market share in the fourth quarter of 2022. Banks are tightening underwriting standards and seeing diminished demand for the products. (Includes data chart.)

Jumbo servicing portfolios at many of the largest firms in the sector increased in both the fourth quarter and on an annual basis. Low prepayment rates helped to keep loans in portfolio. (Includes data chart.)

Two new issuers are offering expanded-credit MBS, there’s a securitization backed by newly-originated second liens and the jumbo MBS market is showing more signs of life.