Issuance of expanded-credit mortgage-backed securities hit $5.97 billion in the first quarter of 2019, a record for the sector. It also topped prime non-agency MBS volume for the third consecutive quarter.
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.
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.
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.
The market for non-qualified mortgages is getting more crowded, with new lenders entering the space and other lenders adding to their programs or enhancing their offerings.
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