With little non-agency MBS issuance, Collingwood noted that it’s difficult to accurately price credit risk.

Freddie had 4,957 full-time employees and 50 part-timers as of Feb. 5, down 2.1 percent compared to a year ago.

Nonbanks have become more competitive the past few years, but if you think that Wells Fargo doesn’t like mortgages, think again.

CMG Mortgage is the top contributor to the jumbo MBS with a 14.3 percent share, followed by EverBank Financial (8.3 percent) and Bridgeview Bancorp (5.7 percent).

Closing delays related to appraisals, title search, insurance and property inspections have all increased in terms of market share in recent months, led by appraisal issues.

Kevin Watters said Chase has reduced its mortgage staffing levels due to declines in originations and improvements in mortgage performance.

KBRA said its loss model is highly sensitive to the increased probability of default associated with mortgages that have high combined LTV ratios.

In recent years, Redwood has focused on jumbo mortgages but the REIT is now placing a greater emphasis on conforming loans.

Wells Fargo remained the most dominant lender in the sector with $42.28 billion of jumbo originations in 2014, down 2.5 percent from the year before.

Nearly $1.0 billion in non-agency MBS was included in the rating action by Fitch.