Originations of adjustable-rate mortgages declined 11.6% in 2018, driven by sharp decreases at a number of banks that dominate ARM production. The sector also lost some market share during the year.
Interest-only mortgage originations in 2018 declined 12.1% among a group of top-ranked lenders. The decline was slightly greater than the drop in total first-lien originations.
Citadel Servicing and Angel Oak Companies reported a sharp increase in origination of nonprime mortgages for the first quarter. Demand from borrowers for non-qualified mortgages remains strong.
Issuance of prime non-agency mortgage-backed securities slowed in the first quarter of 2019, prompting industry analysts to reduce their volume projections for the full year.
JPMorgan Chase is set to issue its first MBS stocked solely by non-qualified mortgages on primary residences. Many of the loans in the $440.54 million deal went to self-employed borrowers.
Banks and thrifts increased their holdings of first-lien residential mortgages in 2018, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]
The two-day hearing this week on an outline for housing-finance reform offered participants in the non-agency market an opportunity to call for legislative reform in the sector.
The correspondent channel expanded its share of jumbo originations in 2018, according to an Inside Nonconforming Markets analysis of survey responses to affiliated Inside Mortgage Finance. [Includes one data chart.]
Moody’s Investors Service has flagged risks related to non-agency players using the automated underwriting tools developed by the government-sponsored enterprises to produce loans underlying private-label mortgage-backed securities.
The representations and warranties provided on new non-agency mortgage-backed securities are receiving renewed attention from industry participants. Issuers of prime jumbo and expanded-credit MBS, particularly, have been subject to criticism.
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