Jumbo Mortgages

Browse articles from all of our Newsletters related to Jumbo Mortgages.

July 21, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


July 21, 2017 - Inside Nonconforming Markets

Redwood Taps First Republic, Quicken for Jumbos

Loans from more than 100 lenders are in the latest jumbo mortgage-backed security from Redwood Trust but most of the lenders contributed such a small volume of loans to the issuance that they weren’t identified by rating services. Only two lenders have consistently provided more than 5.0 percent of the dollar volume in jumbo MBS Redwood has issued this year: First Republic Bank and Quicken Loans. Loans from First Republic account for 19.6 percent of the $485.25 million ...


July 21, 2017 - Inside Nonconforming Markets

Fixed-Rate Loans Dominate Non-Agency MBS

Only fixed-rate mortgages were included in prime non-agency mortgage-backed securities issued in the second quarter of 2017, according to an analysis by Inside Nonconforming Markets. It was the third quarterly interval since the first quarter of 2016 that adjustable-rate mortgages and loans with interest-only features were excluded from prime/jumbo MBS. And in the first quarter of 2017, ARMs accounted for less than 1.0 percent of total prime non-agency ... [Includes two data charts]


July 21, 2017 - Inside Nonconforming Markets

Wells Sends Mixed Signals on Jumbo IOs

John Shrewsberry, CFO of Wells Fargo, told the bank’s investors last week that Wells is taking some steps to boost mortgage originations, including an emphasis on interest-only loans. “We are making some modest changes to generate new loan originations, including offering interest-only jumbo mortgage loans to high quality borrowers ...,” Shrewsberry said during Wells’ earnings call. However, when asked for further details, Tom Goyda, a spokesperson for Wells, downplayed ...


July 21, 2017 - Inside Nonconforming Markets

Flagstar to Issue Jumbo MBS, Joining Chase As the Only Active Bank Issuer in the Market

The jumbo mortgage-backed security market is set for a significant boost as Flagstar Bank will issue MBS. Since 2015, only one bank has issued jumbo MBS: JPMorgan Chase. Other issuers have all been nonbanks as banks have largely opted to retain jumbos in portfolio instead of issue non-agency MBS. Some details about the planned Flagstar Mortgage Trust 2017-1 were revealed this week in documents filed with the Securities and Exchange Commission ...


July 20, 2017 - Inside Mortgage Finance

Looking to Boost Originations, Wells Will Amp Up Interest-Only Mortgages for Jumbo Borrowers

Wells Fargo plans to increase originations by putting an emphasis on interest-only mortgages, according to John Shrewsberry, the bank’s CFO. “We are making some modest changes to generate new loan originations, including offering interest-only jumbo mortgage loans to high quality borrowers,” Shrewsberry said late last week during Wells’ earnings call for the second quarter. Wells had...


July 14, 2017 - Inside MBS & ABS

Despite Slump in Prime-Jumbo Space, Non-agency MBS Production Gained Momentum in Second Quarter

The non-agency MBS market is off to what looks like one of its best years in terms of new issuance since the financial crisis, according to a new analysis by Inside MBS & ABS. A total of $15.30 billion of non-agency MBS were issued in the second quarter, representing a gain of 13.4 percent from the first three months of 2017. That brought year-to-date production to $28.80 billion, a 32.0 percent increase over the first half of 2016. As has been the case since 2009, most of the new production has been...[Includes three data tables]


July 7, 2017 - Inside FHA/VA Lending

FHA Provides Additional Guidance For Using New Loan Review System

The latest issue of FHA’s Lender Insight provides additional information to lenders regarding the new Loan Review System that was launched on May 15, 2017. FHA urged lenders to keep their contact information current in FHA Connection and in the Lender Electronic Appraisal Portal so that they receive automated system notifications on time. Also, lenders should review current FHAC user access for appropriate roles, the agency added. Lenders’ in-house FHAC application coordinators are authorized to grant access to, and assign roles within, the LRS. Having the correct roles should enable users to access the system from the FHAC menu, the FHA said. In addition, the lender must take a photo of any error messages that might appear on screen before contacting the FHA Resource Center, the agency advised. Be prepared to provide the date and time of the attempted login, user ID, lender user ID and the ...


July 7, 2017 - Inside FHA/VA Lending

DOJ, HUD Expand FCA Scrutiny to FHA Servicing, Reverse Mortgages

Mortgage compliance experts are cautioning FHA servicers to tread carefully around loss mitigation, annual certifications and reverse mortgages, which could be a potential minefield for False Claims Act lawsuits. While FHA lenders’ exposure to FCA risk remains, the Department of Justice and the Department of Housing and Urban Development have increased their scrutiny of FHA servicing practices for potential violations, according to Phil Schulman and Kristie Kully, both partners in Mayer Brown’s Washington office. In a recent podcast, Schulman warned of increasing DOJ and HUD scrutiny of FHA servicing practices in the last 18 months, a worrisome shift from the origination side, which has seen an estimated $5 billion in settlements and penalties since 2011 for violations of the FCA and the Financial Institutions Reform, Recovery and Enforcement Act. Since 2008, mortgagees participating in ...


July 7, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rides Rising Home Sales in 2Q17

Ginnie Mae issuers were moderately busier in the second quarter of 2017 than during the first three months of the year, according to a new analysis and ranking by Inside FHA/VA Lending. Issuers produced $112.71 billion of single-family mortgage-backed securities during the second quarter, including MBS backed by FHA home-equity conversion mortgages. It was a 5.5 percent increase from the previous period and brought year-to-date issuance to $219.51 billion, down 0.7 percent from the first half of 2016. The quarterly uptick in total issuance may not sound like much, but contrasts sharply with production at Fannie Mae and Freddie Mac, which dropped 13.1 percent from the first to the second quarter. Ginnie volume was up because it had a deeper vein of purchase-money mortgages than there was in the government-sponsored enterprise market. Purchase loans accounted for 63.4 percent of ... [Charts]


July 7, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


July 7, 2017 - Inside Nonconforming Markets

News Briefs

Moody’s Investors Service increased its assessment of Wells Fargo’s jumbo-mortgage property valuation practices from above average to strong. The rating service said the improvement was due to Wells no longer having an ownership interest in one of the appraisal management companies used by the bank. “During the prior review, Wells had an equity interest in an AMC which received approximately 90 percent of the appraisal orders,” Moody’s said ... [Includes two briefs]


July 7, 2017 - Inside Nonconforming Markets

Prepayments on Wells’ Jumbos Relatively High

The prepayment rate on vintage jumbo mortgages serviced by Wells Fargo is outpacing the industry average by a wide margin, according to an analysis by Bank of America Merrill Lynch. A lower level of loan modifications by Wells appears to be driving the trend. BAML noted that prepayment rates on jumbo mortgages in vintage non-agency mortgage-backed securities have followed a stable trend in the last three years. However, since 2013, Wells-serviced jumbo fixed-rate ...


July 7, 2017 - Inside Nonconforming Markets

Flagstar Receives Lender/Servicer Ratings

Flagstar Bank recently received assessments by Fitch Ratings of the bank’s origination platform and servicing operations. The ratings could signal increased involvement in the jumbo mortgage-backed security market by Flagstar. Fitch assigned an “average” rating to Flagstar’s origination platform. “Notable strengths of Flagstar’s origination platform include its experienced senior management team and staff, robust loan sourcing strategy, and comprehensive underwriting ...


July 7, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Issuance Down in 2Q

Issuance of prime non-agency mortgage-backed securities cooled off somewhat in the second quarter of 2017 after a relatively strong showing in the previous period. Three deals totaling $1.88 billion were issued in the second quarter, a 27.6 percent drop from the first three months of the year, according to Inside Nonconforming Markets. However, activity in the first half of this year outpaced the first half of 2016, as the dollar volume of issuance was ... [Includes one data chart]


July 7, 2017 - Inside MBS & ABS

After a Significant Lull, Credit Suisse Returns to Non-Agency MBS Market with a Flurry of Deals

Near the end of the second quarter, Credit Suisse resumed its activity in the non-agency MBS market after a lengthy pause. In May, the investment bank unveiled a $91.18 million deal backed by seasoned FHA loans. That was followed by a $393.97 million issuance backed by seasoned mortgages at the end of June. Credit Suisse marked its return to the jumbo MBS market in June – not as an issuer but as a depositor – lending its shelf registration to American International Group for a $511.98 million MBS. The bank faced...


July 7, 2017 - Inside MBS & ABS

Overall MBS/ABS Production Faltered Slightly In 2Q17, But Issuance Was Up in Some Sectors

The MBS and ABS market was a mixed bag in terms of new issuance during the second quarter, as overall production was down slightly from the beginning of the year, according to a new analysis by Inside MBS & ABS. A total of $430.98 billion of single-family MBS, non-mortgage ABS and commercial-property securitizations was issued in the second quarter, down 2.6 percent from the first three months of the year. That pushed year-to-date issuance to $873.47 billion, up 8.1 percent from the first six months of 2016. Single-family MBS accounted for a hefty 75.1 percent of total issuance so far in 2017, with non-mortgage ABS (13.2 percent) and commercial MBS (11.7 percent) making up the rest. But single-family turned...[Includes three data tables]


June 23, 2017 - Inside FHA/VA Lending

VA Jumbo Securitization Declines, FHA Jumbo Production also Down

Wells Fargo fell a notch as PennyMac raced to the top to become the leading VA jumbo securitizer for the first quarter of 2017 – a period in which VA jumbo loan securitization took a sharp nose dive. The volume of VA jumbo loans securitized during the first three months plunged 36.8 percent, compared to the meager 2.0 percent decline seen in the fourth quarter. The drop reflected a 32.9 percent drop in jumbo mortgage production during the first quarter, along with similar large drops in virtually every product segment in the mortgage market, according to an analysis by Inside FHA/VA Lending affiliate Inside Mortgage Finance. The agency jumbo market was down 39.1 percent from the fourth quarter despite the bump up in high-cost loan limits to $636,150, an increase of $10,650 that became effective in January. All components of the agency jumbo market took big hits in the first quarter, including ... [ Charts ]


June 23, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


June 23, 2017 - Inside Nonconforming Markets

News Briefs

Representations and warranties on new nonprime mortgage-backed securities often include weaknesses that limit their ability to protect investors against fraudulent or defective loans, according to an analysis by Moody’s Investors Service. However, the rating service said current practices and dynamics in the nonprime MBS market help to mitigate the risks from weak reps and warranties. Moody’s hasn’t placed ratings on nonprime MBS backed by ... [Includes four briefs]


June 23, 2017 - Inside Nonconforming Markets

AIG to Issue Its First Jumbo MBS

Affiliates of American International Group are set to issue their first jumbo mortgage-backed security, according to presale reports released this week. AIG’s residential mortgage lending group has been acquiring jumbos on a correspondent basis since 2013, amassing more than $4.50 billion in holdings. The planned CSMC 2017-HL1 Trust is a $511.98 million securitization of loans acquired from a variety of lenders. The MBS will be issued on a Credit Suisse shelf ...


June 23, 2017 - Inside Nonconforming Markets

Bank Portfolio Holdings Decline in 1Q17 as Jumbo Originations Fall

Bank and thrift holdings of first-lien mortgages took a relatively rare decline in the first quarter of 2017 as jumbo production stalled during the period, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held a total of $1.93 trillion of first-lien residential mortgages in portfolio as of the end of March, down 0.1 percent from December 2016. The holdings have increased relatively steadily in recent years ... [Includes one data chart]


June 23, 2017 - Inside MBS & ABS

Fintech Darling SoFi Files for a Bank Charter, Deposit Insurance and Has an IPO on the Drawing Board

Marketplace lender Social Finance – a mortgage originator with a track record in securitizing consumer and student loans – has filed for a state bank charter in Utah and is also pondering selling stock to the public. For now, the privately held technology-centric firm isn’t saying much about its plans, including the initial public offering. One source familiar with the company’s mortgage operation said SoFi recently hired one executive away from a larger player by dangling the IPO and stock options. To date, there has been...


June 23, 2017 - Inside MBS & ABS

Securitization Rates Started Strong in 2017, But Secondary Lagged Mortgage Originations Slump

Securitization rates appeared to rebound strongly in the first quarter of 2017, with an estimated 79.5 percent of primary-market mortgage originations finding their way into a variety of MBS, according to a new Inside MBS & ABS analysis. That’s up from a 69.1 percent securitization rate for all of 2016 and, if it keeps up for the rest of 2017, it would be the highest mark since 2013. In the fourth quarter of 2016, the rate was 72.7 percent. Both new MBS production and primary-market originations were...[Includes one data table]


June 16, 2017 - Inside MBS & ABS

Ginnie Moves Past Freddie in Outstanding 1-4 Family MBS in Early 2017, Many Investor Classes Up Holdings

Ginnie Mae hit a milestone in the MBS market during the first quarter of 2017, edging past Freddie Mac to become the second-largest supplier of single-family MBS in the world. A new Inside MBS & ABS analysis reveals $1.705 trillion of Ginnie 1-4 family MBS outstanding at the end of March, a 2.2 percent increase in just three months. Meanwhile, outstanding single-family Freddie MBS rose 0.7 percent to $1.703 trillion. Both Ginnie and Freddie accounted...[Includes two data tables]


June 9, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


June 9, 2017 - Inside Nonconforming Markets

Jumbos Trading on MAXEX Loan Exchange

A loan exchange operated by MAXEX looks to be a new source of jumbo mortgages. The exchange was recently assessed by Fitch Ratings and loans sourced from the exchange have been included in jumbo mortgage-backed securities issued by JPMorgan Chase. MAXEX was founded in 2012 but didn’t launch its LoanExchange platform until June 2016. Mortgages with an unpaid principal balance of more than $500.0 million have traded on the platform, according to Fitch. “JPMorgan Chase is...


June 9, 2017 - Inside Nonconforming Markets

AIG Close to Issuing Jumbo MBS

American International Group’s jumbo conduit has purchased a significant volume of mortgages in the past year and has plans to issue non-agency mortgage-backed securities. As of April, AIG Investments had purchased prime jumbo mortgages with an original balance of approximately $4.80 billion, according to Fitch Ratings. AIG launched its residential mortgage lending division in 2013 and has ramped up acquisition activity since then. Fitch recently assessed...


June 9, 2017 - Inside Nonconforming Markets

Redwood Preps New Jumbo MBS

Redwood Trust is set to end a slight lull in its issuance of jumbo mortgage-backed securities with a new $349.46 million deal. The firm issued one jumbo MBS per month in the first three months of the year while planned Sequoia Mortgage Trust 2017-4 is set to close at the end of this month, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. At a recent investor conference, Marty Hughes, Redwood’s CEO, said...


June 9, 2017 - Inside Nonconforming Markets

Retail Share of Jumbo Originations Declined Slightly in Early 2017

Sharp declines in retail originations of jumbo mortgages at a number of major lenders contributed to a decline in the channel’s share of jumbo originations in the first quarter of 2017, according to a new analysis by Inside Nonconforming Markets. The retail channel accounted for 79.3 percent of the $49.49 billion of jumbo originations reported by a diverse group of top lenders in the first quarter, down from an 82.6 percent share in the fourth quarter of 2016. Actual jumbo retail production reported by the group was...[Includes one data table]


June 9, 2017 - Inside MBS & ABS

Mortgage REITs Positive on Opportunities to Invest in Agency MBS Despite Tightening Spreads, Analysts Say

Mortgage real estate investment trusts are expressing optimism about investment opportunities in agency MBS despite tighter spreads on credit assets, according to industry analysts at a recent mortgage finance conference in New York City. Mortgage REITs were positive on investment opportunities and believed that interest rate increases were likely to be moderate in the months ahead, said analysts with Keefe, Bruyette & Woods, which hosted the conference. Industry executives, however, noted...


June 9, 2017 - Inside MBS & ABS

Non-Agency MBS Market Gets Busy With New Deals From Redwood, Deephaven, Mill City, MFA and New Residential

June is shaping up to be a strong month for the non-agency MBS market with a handful of new deals that reflect the character of the sector: a reliance on scratch-and-dent transactions mixed with an emerging nonprime component and opportunistic prime jumbo issuance. Five non-agency MBS totaling $1.90 billion hit the market in the first week of June, with three S&D deals accounting for $1.30 billion of the total. The biggest of these was...


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