Jumbo lending increased by 22.5% in the second quarter but the sector lost market share as borrowers flocked to refinance agency mortgages. Wells Fargo remained the top-ranked jumbo lender by a small margin. (Includes data chart.)

Servicing balance for jumbo mortgages fell in 2Q20 among a group of 30 servicers tracked by this newsletter, including the top three in the industry. (Includes data chart.)

Only two non-agency MBS hit the market in the past two weeks: a non-QM deal from PIMCO and a deal from Starwood Property.

Non-agency forbearance increases; prices for luxury homes fluctuate; PCMA sees strong interest in new non-QMs; Angel Oak and Citadel offer loans underwritten with 12 months of bank statements; former Redwood Trust president moves on to rent-to-own provider.

The REIT’s aggregation of non-agency mortgages typically dwarfs its business-purpose lending activity, but that wasn’t the case in the second quarter of 2020.

Overall, 14.6% of applications for jumbo mortgages were denied in 2019. Among the top 10 lenders, denial rates ranged from 1.1% to 41.5%. (Includes data chart.)

An affiliate of Bayview Asset Management entered the prime non-agency MBS market and non-QM MBS issuers continue to stock deals with seasoned loans.

The lender increased its mortgage originations by 67% in the second quarter, with an emphasis on refinances.

Chase is set to issue a $750 million deal while Chimera is planning a $362 million MBS. Both securities are stocked with jumbos along with mortgages eligible for sale to the GSEs.