The top five producers of jumbos continue to offer the mortgages. The production picture is less clear at nonbanks, which don’t have portfolio capacity.

Non-agency loans account for about 30% of all residential mortgages outstanding and, unlike with servicing for the GSEs or government-insured mortgages, there’s no standardization in how servicers will respond to borrowers facing financial difficulties tied to the coronavirus.

After a surge in February, the issuance of non-agency MBS has all but ground to a halt due to financial turmoil caused by the coronavirus.

Nearly all the firms in a group of 30 servicers increased their jumbo portfolio in 2019. Chase and Truist were the only ones to see a decrease. (Includes data chart.)

Toorak prices securitization backed by bridge loans; Redwood extends a warehouse line; Velocity provides a financial update; sales of luxury homes rose in 4Q19; PCMA launches product for investment properties.

Presale reports for three deals backed by new originations were published this week. However, there’s uncertainty about how they will be received by investors due to market volatility related to the coronavirus.

The retail channel, which is the predominant source of jumbo originations, gained market share from the correspondent channel last year. (Includes data chart.)

Redwood’s mortgage aggregation activity is increasing as banks apparently can’t handle all of the new volume tied to a decline in interest rates.

Production of jumbos increased by nearly 50% in 2019. The increase was proportional to broader trends in the mortgage market, but the sector didn’t keep pace in the fourth quarter. (Includes data chart.)

Issuance of non-agency MBS backed by prime mortgages offers better returns than aggregating non-QMs, according to officials at Chimera Investment.