Jumbo Mortgages

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

June 15, 2018 - Inside FHA/VA Lending

Bill Introduced to Address Issues Raised by DOJ Use of FCA, FIRREA

Bipartisan legislation was introduced recently in the House to addresse problems arising from the use of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act in the context of mortgage insurance claims. Co-sponsored by Reps. Josh Gottheimer, D-NJ, and Lee Zeldin, R-NY, the bill would provide certain restrictions and clarifications on false claims and civil actions related to loans with FHA, VA or U.S. Department of Agriculture guarantee. H.R. 5993, the Fixing Access to Credit Act of 2018, has been sent to the House Financial Services Committee and to the House Committee on the Judiciary. A Civil War statute, FCA seeks to deter fraud against the government by providing hefty penalties for violations and establishing a 10-year statute of limitations to file civil claims. Enacted in the wake of the savings and loan debacle in the 1980s, FIRREA outlawed abusive lending and ...


June 15, 2018 - Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...


June 15, 2018 - 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 15, 2018 - Inside Nonconforming Markets

Jumbo Demand Steady After Tax Reform

Demand for jumbo mortgages was expected to decline due to various provisions included in tax reform legislation but applications for jumbos didn’t dip in early 2018, according to CoreLogic. The analytics firm tracked loan applications in high-cost areas, concentrated in California and the northeast. Applications for purchase mortgages in the first quarter of 2018 were compared with trends seen in the prior four years. “We didn’t observe any meaningful change in purchase loan application ...


June 15, 2018 - Inside Nonconforming Markets

Flagstar Makes Some Changes with Latest MBS

The latest prime non-agency mortgage-backed security from Flagstar Bank will differ somewhat from two similar deals issued by the bank this year, according to presale reports released this week. The share of mortgages subject to due diligence was adjusted and there will be a higher share of mortgages in the deal that are eligible for sale to the government-sponsored enterprises. The pending $466.93 million Flagstar Mortgage Trust 2018-4 follows deals from the bank that closed in ...


June 15, 2018 - Inside Nonconforming Markets

Accounting Change Could Impact Jumbo Pricing

A pending change to accounting standards could change the way banks price jumbo mortgages, according to industry analysts. Beginning in 2020, many banks will have to change their accounting methods to include a “current expected credit loss model.” The adoption timeline was recently set by federal banking regulators. The CECL model forces banks to make projections for lifetime losses on loans they hold and potentially increase reserves relating to the projected losses ...


June 15, 2018 - Inside Nonconforming Markets

Jumbo Servicing Portfolios Grow in First Quarter

The amount of jumbo mortgages handled by a large group of servicers increased in the first quarter, according to a new ranking by Inside Nonconforming Markets. The 30 servicers handled an estimated total of $1.05 trillion in jumbos as of the end of March, up 1.4 percent from the end of 2017 and a 13.5 percent increase from March 2017. Growth in jumbo servicing significantly outpaced trends in total mortgage debt outstanding. Some $10.65 trillion ... [Includes one data chart]


June 14, 2018 - Inside Mortgage Finance

Jumbo Mortgage Production Down Sharply in Early 2018, Biggest Impact on Purchase Market

Mortgage production indicators were down almost across the board during the first quarter of 2018, but the jumbo market posted some of the biggest declines of all. [Includes three data charts.]


June 1, 2018 - Inside FHA/VA Lending

Brokers Gain Some Ground in Government-Insured Market

Mortgage brokers and their wholesale funders gained some share in the FHA/VA market during the first quarter of 2018, according to a new Inside FHA/VA Lending analysis. Survey data collected by Inside Mortgage Finance show that all three production channels took big hits in FHA/VA volume in early 2018. The $49.11 billion in government-insured lending reported by participating lenders was down 20.7 percent from the previous quarter and 10.8 percent below the volume the group generated in the first three months of 2017. Correspondent production remained the biggest source of FHA/VA loans, accounting for 53.5 percent of the survey sample in the first quarter. But production through this channel was down 22.2 percent from the previous three-month period, a slightly larger decline than seen overall. Four of the top five lenders in the group have strong correspondent platforms, especially ... [Chart]


June 1, 2018 - Inside FHA/VA Lending

Groups Celebrate Montgomery’s Confirmation by Making Wish Lists

Industry trade groups are shopping lists of FHA priorities following last week’s Senate confirmation of Brian Montgomery as FHA commissioner and assistant secretary of housing at the Department of Housing and Urban Development. On May 23, the full Senate voted 74-23 to clear the former FHA commissioner for a return engagement after resolving a partisan block on all of President Trump’s nominees for top positions at HUD. Twenty-five Democrats joined 49 Republicans in approving Montgomery. He served as FHA commissioner under both the George W. Bush and Obama administrations. Montgomery was nominated initially in September 2017 and was approved by the Senate Banking Committee on Nov. 28 by an 18-5 vote. Under Senate rules, his nomination was returned to the president at the end of 2017. Montgomery was re-nominated in early January and was again approved by the ...


June 1, 2018 - 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 1, 2018 - Inside Nonconforming Markets

More Non-agency MBS Hits the Market

Issuers of non-agency mortgage-backed securities continued to bring a variety of deals in May. JPMorgan Chase and Redwood Trust are set to issue separate prime non-agency MBS and nonprime MBS is on the way from Deephaven Mortgage and Lone Star Funds. Both Chase and Redwood continue to include mortgages eligible for sale to the government-sponsored enterprises in their issuance. Such loans will account for essentially half of the $650.5 million issuance ...


June 1, 2018 - Inside Nonconforming Markets

Purchase-Mortgage Share of Jumbos Up in 2017

The purchase-mortgage share of jumbo originations increased in 2017 on an annual basis, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. The loans accounted for 63.6 percent of the $317.29 billion of jumbos originated in 2017, up from a 53.5 percent share the previous year. The emphasis on purchase mortgages varied among the top jumbo lenders. Purchase loans accounted for 69.4 percent ... [Includes three data charts]


June 1, 2018 - Inside Nonconforming Markets

Retail Channel Gains Market Share in Jumbo Sector in 1Q18 as Originations Fall

Originations of jumbo mortgages declined across channels in the first quarter with the retail channel gaining market share, according to survey results analyzed by Inside Nonconforming Markets. Jumbo originations reported by survey respondents declined by 30.4 percent from the fourth quarter of 2017 to the first quarter of this year. The survey data, gathered by Inside Mortgage Finance, included $40.4 billion of first-quarter jumbo originations, roughly two thirds ... [Includes one data chart]


May 18, 2018 - 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.


May 18, 2018 - Inside Nonconforming Markets

News Briefs

As soon as next week, the House could vote to approve a regulatory relief bill that already passed the Senate. Among numerous other provisions, the Economic Growth, Regulatory Relief, and Consumer Protection Act would grant qualified mortgage status to certain loans held in portfolio by smaller banks even if the mortgages would otherwise be non-QMs. Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, also said ... [Includes four briefs]


May 18, 2018 - Inside Nonconforming Markets

Favorable Treatment for AIG’s Second MBS

The second prime non-agency mortgage-backed security from an affiliate of American International Group is a lot like the MBS the company issued in March, but the new deal received favorable treatment from the rating services, with lower credit enhancement on the senior tranche. PSMC 2018-2 Trust will be a $429.4 million issuance, according to presale reports published last week. The mortgages have an average credit score of 773, an average debt-to-income ratio of 33.0 percent ...


May 18, 2018 - Inside Nonconforming Markets

Redwood Flourishing with Expanded-Credit Loans

Redwood Trust boosted its net income in the first quarter of 2018 and continued to increase its originations of expanded-credit mortgages. The real estate investment trust is seeing strong demand for the loans in the secondary market and Redwood is set to issue its largest expanded-credit mortgage-backed security to date. Redwood had $46.9 million in net income in the quarter, up 51.4 percent from the fourth quarter of 2017 and up 26.7 percent from a year ago. The company sold ...


May 18, 2018 - Inside Nonconforming Markets

California Loses Market Share for Jumbos in 2017

California continues to account for the largest share of non-agency jumbo originations but it lost some market share in 2017, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Some $317.29 billion of jumbos were originated in 2017, down 9.7 percent from the previous year. The analysis is based on originations of first-lien, single-family mortgages, with loan-limits determined at the county level. Originations of ... [Includes one data chart]


May 18, 2018 - Inside Nonconforming Markets

Non-Agency Jumbo Lending Tumbled In 1Q18, Sector Loses Market Share

Production of non-agency jumbo mortgages declined significantly in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $60.0 billion of jumbos were originated in the first quarter, down 26.8 percent from the previous period. Jumbo production was also off 13.0 percent from the first three months of 2017. The decline in jumbo volume was greater than the slowdown in the overall mortgage ... [Includes one data chart]


Poll

With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

vote to see results