Jumbo Mortgages

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

September 15, 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.


September 15, 2017 - Inside Nonconforming Markets

Non-Agency MBS Issuers Address Hurricane Risk

Three non-agency mortgage-backed securities issuers were preparing to issue deals around the time that Hurricane Harvey hit the Gulf Coast and Hurricane Irma made landfall in Florida. Deals from the issuers include mortgages on properties in the disaster areas, prompting inspections and an emphasis on the representations and warranties included with the MBS. An affiliate of Shellpoint Partners is set to issue a $323.38 million deal on Sept. 29. According to Kroll Bond Rating Agency ...


September 15, 2017 - Inside Nonconforming Markets

Shellpoint Packages More BofA Jumbos into MBS

An affiliate of Shellpoint Partners is preparing to issue another jumbo mortgage-backed security backed largely by mortgages aggregated by Bank of America. The planned Shellpoint Co-Originator Trust 2017-2 is a $323.38 million deal that received preliminary AAA ratings this week. Nearly all of the mortgages were aggregated by BofA through its jumbo whole-loan purchase program and sold to Shellpoint in bulk deals. Loans from 17 lenders will be included in the pool, led by ...


September 15, 2017 - Inside Nonconforming Markets

Slight Shift in Retail Share for Jumbo Lenders

The retail channel dominates production among prominent jumbo lenders and gained some market share through two quarters this year, according to a new analysis by Inside Nonconforming Markets. The retail channel accounted for 77.5 percent of jumbo originations among a group of lenders that had a total of $108.00 billion in jumbo volume in the first half of 2017. The retail share was 76.6 percent over the same period in 2016. The correspondent ... [Includes one data chart]


September 15, 2017 - Inside Nonconforming Markets

Banks Increase First-Lien Holdings in 2Q

Bank and thrift holdings of first-lien mortgages continued to increase in the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.97 trillion of first-lien mortgages at the end of June. The holdings were up by 1.9 percent from March and up 3.8 percent from a year ago. Trends in portfolio management were somewhat mixed among the top 10 holders of first-lien mortgages. Top-ranked Wells Fargo had ... [Includes one data chart]


September 15, 2017 - Inside Nonconforming Markets

Redwood Brings its First ‘Expanded Prime’ MBS With Higher Credit Enhancement

Redwood Trust is set to issue its first jumbo mortgage-backed security backed predominantly by loans with looser underwriting standards than the super-prime jumbos that have dominated the market. The planned $316.49 million Sequoia Mortgage Trust 2017-CH-1 includes many non-qualified mortgages and other loans that fall outside of Redwood’s traditional Select program. Kroll Bond Rating Agency and Moody’s Investors Service assigned preliminary AAA ratings to the MBS last week ...


September 15, 2017 - Inside MBS & ABS

Credit Rating Agencies Expect Limited RMBS Exposure Will Ease Effects of Losses in Storm Areas

Most rated residential MBS in regions affected by Hurricanes Harvey and Irma have limited exposure that will mitigate the losses resulting from the devastation, according to rating services. Residential MBS rated by Moody’s Investors Service, including securities backed by single-family rental properties, have minimal exposure to the storm-affected counties of Texas and Louisiana thereby easing the losses due to reduced property values, rising delinquencies and longer foreclosure and liquidation timelines, the rating agency said. The analysis is...


September 15, 2017 - Inside MBS & ABS

Mortgage Securitization Rate Sinks in 2Q17 as Primary Market Races Ahead of MBS Platforms

The seasonal surge in primary market mortgage originations stood in stark contrast to a slump in new residential MBS issuance during the second quarter of 2017. Mortgage lenders originated an estimated $455.0 billion of new first-lien loans during the April-June cycle, an 18.2 percent increase from the first three months of the year, according to estimates by Inside Mortgage Finance. But the secondary market generated just $294.7 billion in MBS backed by purchase and refinance loans – a 5.3 percent decline. The result was...[Includes one data table]


September 14, 2017 - Inside Mortgage Finance

Redwood Sourcing ‘Expanded Prime’ Jumbo Mortgages From Hundreds of Correspondents

Redwood Trust has seen strong demand from borrowers and correspondent lenders for its “expanded prime” program that the aggregator introduced last year. The real estate investment trust’s Choice products allow for somewhat looser underwriting than the super-prime mortgages that have dominated the jumbo market after the financial crisis. The Choice program was introduced in April 2016. Volume has increased relatively quickly and could top $1.0 billion this year. Officials say...


September 14, 2017 - Inside Mortgage Finance

Agency-Jumbo Production Sagged in 2Q17 While Non-Agency Sector Kept Growing

Deliveries of conforming-jumbo loans into mortgage-backed securities slowed during the second quarter of 2017, despite the solid increase in originations of non-agency jumbo loans, according to a new Inside Mortgage Finance analysis and ranking. During the second quarter, Fannie Mae, Freddie Mac and Ginnie Mae securitized $27.62 billion of single-unit mortgages that had loan amounts exceeding the $424,100 conforming loan limit. That was down 4.6 percent from the first three months of the year, a smaller drop than the 6.9 percent decline in total Fannie, Freddie, FHA and VA activity. But the non-agency jumbo market saw...[Includes three data tables]


September 8, 2017 - Inside MBS & ABS

Redwood Brings Variety to Jumbo Market with First ‘Expanded Prime’ MBS; Deal Received Favorably

Redwood Trust worked for years to revive the jumbo MBS market by issuing deals with super-prime mortgages. Now, the firm is shifting its focus somewhat to “expanded prime” mortgages that have slightly looser underwriting standards. The $316.49 million Sequoia Mortgage Trust 2017-CH-1 is the first MBS from Redwood to deviate from super-prime standards. The deal received preliminary AAA ratings this week from Kroll Bond Rating Agency and Moody’s Investors Service. The average combined loan-to-value ratio of the mortgages in the MBS is...


September 1, 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.


September 1, 2017 - Inside Nonconforming Markets

News Briefs

Redwood Trust is preparing to issue its first non-agency mortgage-backed security backed by “expanded prime” mortgages. In the second quarter, Redwood acquired approximately $240.0 million of such mortgages, which have somewhat looser underwriting standards than what’s typically seen in the jumbo MBS market. Clayton Holdings reviewed 417 mortgages for the planned issuance, according to documents filed Aug. 30 with the Securities and Exchange Commission. The total unpaid principal balance of the loans wasn’t disclosed. The deal will include...


September 1, 2017 - Inside Nonconforming Markets

Jumbo Servicing Continues to Increase for Most Top Servicers, Performance Pristine

The volume of jumbo mortgages handled by the top servicers continued to increase in the second quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 30 companies serviced an estimated $957.50 billion of jumbos at the end of June, up 2.3 percent from the previous quarter and up 8.7 percent from the second quarter of 2016. The servicers outpaced...[Includes one data table]


August 18, 2017 - Inside FHA/VA Lending

No Ginnie Mae Summit in 2017, Event Moved to January 2018

Ginnie Mae will not have an annual summit this year but has rescheduled it for January 2018, according to Ginnie Mae’s new spokesperson. Michael Huff, senior advisor, congressional and stakeholder relations, said a new administration and staff departures have caused organizers to reconsider having the annual Ginnie Mae Summit this year, usually held in October. The Trump administration has yet to announce a nominee for the top job at Ginnie Mae since former president Ted Tozer left in January. David Kittle is reportedly a leading contender, but there has been no official announcement or confirmation. So far, Kittle has declined to comment. Kittle is a mortgage industry veteran who began as a loan officer and now heads his own company. He also was a top executive with the Mortgage Bankers Association and managed, among other things, the group’s political action committee. In addition, Kittle co-founded the ...


August 18, 2017 - Inside FHA/VA Lending

Wells Fargo, PHH Reach Separate Settlements to Resolve FCA Suits

Wells Fargo and PHH Mortgage have reached separate settlements with the Department of Justice and three other federal agencies to resolve alleged violations of the False Claims Act. The DOJ, Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Finance Agency will rake in $182 million from the settlement of lawsuits involving FHA and VA loans, as well as loans sold to Fannie Mae and Freddie Mac. Wells Fargo denied the allegations in the whistleblower lawsuit but agreed to pay $108 million to resolve the claims. It admitted to no fault or liability. Filed in 2006 and unsealed in 2011, the lawsuit alleged that the bank overcharged veteran borrowers by masking ineligible fees in order to obtain VA guarantees on certain Interest Rate Reduction Refinancing Loans, or streamlined refi mortgages. At the same time, Wells allegedly falsely certified to the VA that it ...


August 18, 2017 - Inside FHA/VA Lending

Industry Experts Favor Unified GSE, FHA/VA Servicing Policies

Simplifying and aligning the default servicing policies of the conventional conforming and the government-backed mortgage markets would better serve the mortgage industry and homeowners, according to industry experts. In a recent discussion on how regulatory burden and high servicing costs might impede lending, members of the Mortgage Servicing Collaborative agreed on the need for streamlined and harmonized federal, state and agency policies and rules on servicing. Increased regulatory requirements have caused mortgage-servicing costs to skyrocket in recent years, experts said. Even though the quality of servicing has improved, the new regulations are complex and costly, they noted. Multiple pressures placed upon servicers have suppressed mortgage lending, making it harder for borrowers with tainted credit to obtain a mortgage, according to the ...


August 18, 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.


August 18, 2017 - Inside Nonconforming Markets

Regular Issuance Continues for Chase, Redwood

JPMorgan Chase and Redwood Trust are set to continue their regular issuance of non-agency mortgage-backed securities, with deals scheduled to close on Aug. 30. The planned JPMorgan Mortgage Trust 2017-3 is a $1.02 billion deal, while Sequoia Mortgage Trust 2017-6 is sized at $355.4 million. Both of the MBS are predominantly backed by non-agency jumbo mortgages along with some loans eligible for sale to the government-sponsored enterprises. Rating services ...


August 18, 2017 - Inside Nonconforming Markets

Jumbo Origination Volume Increases In 2Q17, Still Off of Pace Set Last Year

Originations of non-agency jumbo mortgages increased in the second quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. But halfway through 2017, volume is lagging the production seen last year. An estimated $83.0 billion of non-agency jumbos were originated in the second quarter, up 18.6 percent from the previous period. In the first half of 2017, an estimated $153.0 billion of jumbos were originated, down ... [Includes one data chart]


August 17, 2017 - Inside Mortgage Finance

Government-Insured Sector Regains Market Share In 2Q17 as Purchase-Mortgage Lending Lifts Off

Mortgage origination volume was up substantially in all product categories during the second quarter, but the government-insured market posted the biggest gain, according to a new ranking and analysis by Inside Mortgage Finance. Mortgage lenders produced an estimated $125.0 billion of government-insured home loans during the second quarter, up 19.0 percent from the first three months of the year. That nudged the government-insured share of the market up to 27.5 percent, the highest it’s been since early 2010. In the immediate aftermath of the housing-market meltdown, jumbo and nonprime production was depressed significantly, boosting the shares of government and conventional-conforming production. FHA and VA production typically gains...[Includes two data tables]


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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