All of the loans that were not reviewed were originated by First Republic Bank. The rating agencies indicated they are comfortable with the lender’s underwriting process.
The most encouraging sign is that agency volume has been gaining pace. Production increased by 11.4 percent from May to June, with $76.48 billion in gross issuance.
As for the two banks working on jumbo securities, both have not issued any bonds in recent years but “are getting their securitization machines ready,” said one jumbo executive.