Jumbo Trends

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

October 19, 2018 - Inside FHA/VA Lending

Government Mortgage Programs Focus on Tech Platform Upgrades

Information technology improvement is the top priority of government lending programs in the coming months and into 2019. Agency representatives at the Mortgage Bankers Association’s annual convention in Washington, DC, said policy changes are in the works to enhance and improve operations, compliance and customer service. FHA Commissioner Brian Montgomery, who joined the agency four months ago, said IT modernization is his primary concern. A state-of-the-art IT system and advanced data analytics are needed to manage FHA exposures effectively, he said. Montgomery made clear FHA has no plans to build a proprietary system but is considering the idea of shared technology, possibly with VA and USDA; something based on Fannie Mae’s and Freddie Mac’s systems; or some off-the-shelf software. In his view, a modern IT system would have automated underwriting that provides ...


October 19, 2018 - Inside FHA/VA Lending

Ginnie Mae to Require Servicer, Credit Ratings for Largest Issuers

Participants in Ginnie Mae’s single-family mortgage-backed securities program may expect new policy changes, including servicer and credit ratings for the largest issuers, clarification of “appropriate sources of liquidity” and other financial requirements. The changes come as issuer liquidity continues to be a primary concern for Ginnie Mae, particularly with nonbanks now the dominant segment in the single-family MBS program. “We’re working on those policies right now,” said Leslie Meaux Pordzik, Ginnie’s acting senior vice president, Office of Issuer and Portfolio Management, at the Mortgage Bankers Association’s annual convention in Washington, DC, this week. Nonbanks account for nearly two-thirds of Ginnie MBS issuance and approximately 75 percent of FHA and VA lending. Nonbanks serviced a record 61.1 percent of outstanding Ginnie single-family MBS at the end of the ...


October 19, 2018 - Inside FHA/VA Lending

FHA, VA Delinquencies Tip Slightly Higher in 3Q18 GNMA MBS Pools

The amount of single-family Ginnie Mae mortgage servicing rights increased a modest 0.9 percent during the third quarter, according to a new analysis and ranking by Inside FHA/VA Lending. Some $1.858 trillion of Ginnie mortgage-backed securities were outstanding at the end of September, a 6.2 percent gain over the previous 12 months. Loans guaranteed by the VA continued to be the fastest growing segment of the Ginnie market. Volume was up 1.3 percent from the end of June, hitting $630.9 billion, an 11.0 percent increase from the same time last year. The FHA segment remained far bigger: $1.114 trillion at the end of the third quarter. However, its growth rate has been slower: 0.7 percent from June and 3.9 percent compared to September 2017. Loan performance deteriorated slightly in both programs. Some 92.9 percent of FHA loans were current at the end of September, down from ... [Charts]


October 19, 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.


October 19, 2018 - Inside Nonconforming Markets

Jumbo-Conforming Spread Closer than Perceived

The interest-rate spread between non-agency jumbo mortgages and conforming mortgages is much closer than average interest rates suggest, according to an analysis by CoreLogic. During the second quarter of 2018, the average interest rate on a 30-year fixed-rate jumbo mortgage was 33 basis points lower than the average rate for a conforming mortgage, according to CoreLogic. Archana Pradhan, a senior professional economist at CoreLogic, noted that the averages present a skewed view of ...


October 19, 2018 - Inside Nonconforming Markets

More MBS Mix Jumbos and GSE-Eligible Loans

The latest prime non-agency mortgage-backed securities from Flagstar Bank and loanDepot include a mix of mortgages eligible for sale to the government-sponsored enterprises and non-agency jumbo mortgages. Flagstar included a further twist with its MBS, as the GSE-eligible mortgages are for investment properties. Such loans account for 77.9 percent of the planned $326.2 million Flagstar Mortgage Trust 2018-6RR. The issuance follows a $329.1 million deal that Flagstar issued in May ...


October 19, 2018 - Inside Nonconforming Markets

First Republic Looking to Gain Market Share

A rise in interest rates on mortgages will help First Republic Bank, San Francisco, gain market share in jumbo originations, according to officials at the bank. Through the first six months of 2018, First Republic ranked fourth among non-agency jumbo lenders, accounting for 3.8 percent of the estimated $140.0 billion of jumbo originations, according to Inside Nonconforming Markets. James Herbert, chairman and CEO of First Republic, noted that some jumbo lenders are reducing staff as originations decline ...


October 19, 2018 - Inside Nonconforming Markets

High Purchase-Mortgage Share for Prime MBS

Purchase mortgages accounted for 70.7 percent of prime non-agency jumbo mortgage-backed securities issued in the third quarter of 2018, according to an analysis by Inside Nonconforming Markets. The third quarter marked a post-crisis high for the purchase mortgage share of prime jumbo MBS issuance. The previous quarterly high was a 67.3 percent share in the third quarter of 2016. Some $2.51 billion of purchase mortgages were ... [Includes two data charts]


October 5, 2018 - Inside FHA/VA Lending

Solid Gains in Purchase-Mortgage Business Offset 3Q18 Refi Slump

Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]


October 5, 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.


October 5, 2018 - Inside Nonconforming Markets

News Briefs

Ocwen Financial completed its acquisition of PHH Corp. this week. Glen Messina was appointed as president and CEO of Ocwen as the $360 million cash transaction closed. He said the merger provides “a foundation to enable Ocwen to resume new business and growth activities to offset portfolio runoff.” New Penn Financial launched a non-qualified mortgage product last week that allows borrowers to qualify for a loan based on their assets. To qualify ... [Includes three briefs]


October 5, 2018 - Inside Nonconforming Markets

Quicken Loosens Underwriting on Jumbos

Quicken Loans recently made a number of adjustments to its underwriting standards for jumbo mortgages, including allowing for lower downpayment requirements and increasing amounts available for cash-out refinances. For certain jumbos, Quicken will now allow downpayments as low as 10.0 percent with no mortgage insurance required. To qualify, the loan amount must be less than $1.0 million and a borrower must generally have a credit score of at least 760 and a debt-to-income ratio ...


October 5, 2018 - Inside Nonconforming Markets

AIG Picking up Pace of Jumbo MBS Issuance

American International Group is increasing the speed of its jumbo mortgage-backed security issuance and receiving better treatment in terms of credit enhancement requirements. An affiliate of AIG is preparing to issue a $395.7 million deal, according to presale reports released this week by Fitch Ratings and Kroll Bond Rating Agency. The issuance follows deals in March, May and September. The average loan age in AIG securities is also declining. Mortgages in the pending MBS have seasoned for ...


October 5, 2018 - Inside Nonconforming Markets

Expanded-Credit MBS Issuance Up in 3Q18, Prime Non-Agency MBS Declines

Issuance trends for non-agency mortgage-backed securities stocked with newly-originated mortgages were mixed in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Issuance of prime non-agency MBS declined significantly on a sequential basis in the third quarter. And for the first time, expanded-credit MBS issuance volume topped prime non-agency MBS activity. Some $3.58 billion of expanded-credit MBS was ... [Includes one data chart]


September 21, 2018 - Inside FHA/VA Lending

Government Share of Originations Down Slightly in Second Quarter

Originations of government-insured mortgages rose 11.2 percent from the first to the second quarter of 2018, according to Inside Mortgage Finance estimates. That increase was slightly lower than the 17.1 percent gain in total first-lien originations over that period. The big winner for the second quarter was the jumbo sector, where loan volume surged 33.5 percent from the first three months of the year. On a year-to-date basis, government lending was down 12.6 percent from the first half of 2017. This reflects the steep decline in refinance lending in general, which affected FHA/VA production significantly. Jumbo lending was also down, by 6.6 percent, from the first six months of last year, but the conventional-conforming market saw a 4.2 percent gain at the midway point in 2018. FHA/VA loans accounted for 22.8 percent of first-lien originations in the first half of 2018. The government share for all of last year was ... [Chart]


September 21, 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.


September 21, 2018 - Inside Nonconforming Markets

Banks Largely Increasing Portfolio Holdings

A wide majority of banks and thrifts continued to increase their first-lien residential mortgage holdings in the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Some $2.04 trillion of residential first liens were held in bank and thrift portfolios as of the end of June, up 0.9 percent from March and up 5.2 percent compared with June 2017. Among the top 50 banks and thrifts, only six reduced their holdings on an annual basis ... [Includes one data chart]


September 20, 2018 - Inside Mortgage Finance

Non-Agency Option Dings GSE Conforming-Jumbo Business in 2018, Volume Up in FHA/VA Sector

Improved loan-sale execution in the non-agency market has taken a bite out of the conforming-jumbo business at Fannie Mae and Freddie Mac, a new Inside Mortgage Finance analysis reveals. [Includes three data charts.]


September 7, 2018 - Inside FHA/VA Lending

GNMA MBS Issuance Nudges Higher in August, Trails 2017

Ginnie Mae issuers produced $36.68 billion of new single-family mortgage-backed securities last month, a modest 5.0 percent gain from July, according to a new Inside FHA/VA Lending analysis and ranking. Through the first eight months of the year, Ginnie issuance was down 11.0 percent from the same period in 2017. The MBS figures do not include FHA home-equity conversion mortgages, and loan amounts are truncated to the lowest $1,000. Purchase mortgages accounted for 75.6 percent of new issuance in August, although volume was up just 1.9 percent from July’s level. On a year-to-date basis, the purchase-mortgage share rose from 65.7 percent in 2017 to 70.0 percent for the first eight months of this year. Total volume, however, was down 5.1 percent. The refinance market has been more wobbly. As of the end of August, refi volume totaled $65.87 billion, down 26.2 percent from the ... [Chart]


September 7, 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.


September 7, 2018 - Inside Nonconforming Markets

Flagstar Keeps 30 Percent Due Diligence Sampling

Flagstar Bank looks to have found an agreeable due diligence sampling rate for loans in its prime non-agency mortgage-backed securities. The company is preparing to issue a $476.1 million prime non-agency MBS, according to presale reports published last week. It’s the second issuance in a row from Flagstar where 30.0 percent of the loans were subject to third-party reviews. Only 20.0 percent of the loans in a $704.1 million deal Flagstar issued in April were subject to ...


September 7, 2018 - Inside Nonconforming Markets

Redwood Touts Mutual Benefits of Financing

Redwood Trust is looking to acquire more jumbo mortgages and many of the nonbanks the firm works with could use some financing, making Redwood’s new funding initiative a good match. During the second quarter of 2018, Redwood deployed $40.0 million in customized financing for nonbanks that deliver jumbos to the real estate investment trust. The initiative is part of a diversification effort. Dashiell Robinson, president of Redwood, noted that the REIT isn’t acting as a ...


September 7, 2018 - Inside Nonconforming Markets

Jumbo Servicing Growing Across Firms

The amount of jumbo mortgages being handled by major servicers has largely increased in the past year, according to a new ranking and analysis by Inside Nonconforming Markets. Among a group of 30 servicers, only six posted declines in jumbo servicing volume on an annual basis as of the end of June. Among the top 10 jumbo servicers, only Ocwen Financial had a decline in servicing. The company remains under growth constraints placed by regulators ... [Includes one data chart]


September 7, 2018 - Inside Nonconforming Markets

Correspondent Channel a Flashpoint in Competitive Jumbo Market at Midyear

With intense competition for originations of jumbo mortgages, the correspondent channel is experiencing volatility, according to an analysis by Inside Nonconforming Markets. A survey of major players in the market shows correspondent production of jumbo loans rose sharply from the first to the second quarter, though volumes and market share are down on an annual basis. Among a group of lenders that generated $55.77 billion in jumbo originations in the second quarter ... [Includes one data chart]


Poll

Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.

35%

The wholesale/table funder. They’re taking the financial risk.

30%

The broker, but only for the first year. After that, the borrower is fair game.

13%

Hard to answer. It’s a complicated issue.

22%