Roc360 acquires BPL assets from Civic Financial Services; new non-agency MBS; non-agency MBS performing well; UWM launches new jumbo products; fractional home-equity provider.

Rising interest rates and tightening of credit standards from banks caused a slowdown in jumbo lending in the first quarter of 2023. First Republic Bank was the top producer in the sector, followed by Wells Fargo. (Includes data chart.)

The sale of First Republic Bank to Chase has opened a door for nonbanks hoping to expand in the jumbo market.

Redwood envisions a strong year for its jumbo conduit businesses amid turmoil in the bank sector.

Sales of jumbo mortgages through the correspondent channel plummeted in 2022 as elevated interest rates cut into production. (Includes data chart.)

While real estate lending might not feel the brunt of a possible credit squeeze, products like jumbo mortgages could still face challenges. There are signs that banks have reduced their appetite for the loans.

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.)