Spreads on new non-agency MBS issuance are tightening. Still, issuance is expected to decline on an annual basis.

Chase leadership anticipates building strong relationships with the affluent borrowers that First Republic garnered throughout its 38-year existence.

Non-qualified mortgage lenders have an opportunity to gain market share in the wholesale channel as competition contracts.

As interest rates rise, homeowners are staying out of the real estate market because they don’t want to let go of the record-low mortgage rates they were able to obtain over the last two years.

Chase’s top officials shed light this week on how First Republic Bank’s high-quality mortgage assets and affluent borrowers fit right into the megabank’s wheelhouse.

Non-agency higher-priced mortgages are a proxy for subprime loans.

While business is slow in most of the mortgage market, some non-QM lenders are anticipating a busy second half of 2023.

For years, Wells Fargo and JPMorgan Chase were the largest originators of jumbo mortgages.

The reason the loans are considered nonprime: a lack of income and employment verification.

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.)