Reform of the government-sponsored enterprises and a potential for more non-agency lending will be a priority for the Trump administration, according to the presumptive nominee to head the Treasury Department. President-elect Donald Trump is likely to nominate Steve Mnuchin to lead the Treasury. Mnuchin is a former partner at Goldman Sachs, founded the hedge fund Dune Capital Management and was among the investors that purchased IndyMac in 2009. In an interview this week on ...

Most of the top 30 servicers of jumbo mortgages increased their servicing portfolios during the third quarter, according to a new Inside Nonconforming Markets ranking. The volume of jumbo mortgages outstanding rose to an estimated $892.4 billion as of the end of September, up 1.7 percent from June and up 10.2 percent from a year ago. Wells Fargo remained the top jumbo servicer, with a $275.1 billion portfolio. That was up 1.1 percent compared to the second quarter ... [Includes one data chart]

Moody’s Investors Service published a warning this week regarding mortgage programs that use bank statements and letters from accountants to verify borrowers’ income. The rating service said that type of underwriting – especially when relying on fewer than 24 months of statements – yields loans that are more risky than mortgages that have traditional income verification. Bank-statement mortgages have gained some prominence in the non-agency market this year as Lone Star Funds ...

American International Group is preparing to resume issuing non-agency mortgage-backed securities, according to officials at the insurance company. The planned issuance differs significantly from the subprime MBS AIG issued before the financial crisis. Douglas Dachille, an executive vice president and CIO, said the firm is working to “rebalance its exposure to residential mortgages” after AIG’s sale of United Guaranty, a private mortgage insurer. During a recent presentation to investors ...

Performance of subprime mortgages continues to improve as the amount of loans outstanding declines. Some $265.0 billion in subprime mortgages were outstanding as of the end of the third quarter, according to estimates by Inside Nonconforming Markets. Only a small volume of new subprime mortgages have been originated since 2008, and in the past couple of years, large transfers of subprime servicing have been limited, prompting subprime servicing to ... [Includes one data chart]

Lone Star Funds is set to issue a mortgage-backed security backed by new nonprime mortgages, according to documents filed with the Securities and Exchange Commission this week. It will be the third MBS from the COLT shelf this year. AMC Diligence said it reviewed 486 mortgages with a total unpaid principal balance of $235.40 million for the planned MBS. The mortgages were originated by Caliber Home Loans, LendSure Mortgage and Sterling Bank & Trust ... [Includes two briefs]

Originations of jumbo mortgages declined slightly from the second to the third quarter of 2016, according to a new ranking and analysis by Inside Nonconforming Markets. Meanwhile, production of conventional-conforming mortgages and loans with a government guarantee increased significantly in that span, prompting an uncharacteristic decline in market share for jumbo mortgages. An estimated $100.0 billion in jumbos were originated in ... [Includes one data chart]

The market for jumbo mortgage-backed securities looks to be regaining some momentum as Shellpoint Partners plans to resume issuance and market-leader JPMorgan Chase prepares another deal. Shellpoint’s New Penn Financial is set to issue a $353.68 million jumbo MBS next week, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. Shellpoint Co-Originator Trust 2016-1 will mark the first issuance from the MBS shelf since ...

Pricing has improved sequentially with each of the three jumbo mortgage-backed securities Redwood Trust has issued this year, according to officials at the real estate investment trust. Redwood’s most recent deal, a $343.16 million jumbo MBS, was issued in October. Christopher Abate, Redwood’s president and CFO, said it’s possible that the REIT will issue another jumbo MBS this year. Marty Hughes, Redwood’s CEO, added a caveat about uncertainty in the financial markets ...

Low mortgage interest rates appear to have contributed to a decline in applications for non-qualified mortgages at Impac Mortgage Holdings in the third quarter, according to officials at the nonbank. “A decline in mortgage interest rates generally increases the volume of conventional refinance products over non-QM loans,” Impac said in a quarterly filing to the Securities and Exchange Commission last week. Of the 58 banks that report to the Federal Reserve on the market for ...