Redwood Trust revved up its latest jumbo mortgage-backed security in a hurry with plans to issue a new deal that includes some loans that don’t meet standards for qualified mortgages. The deal also includes less than 100 percent due diligence. The weighted-average loan age on the $306.05 million Sequoia Mortgage Trust 2014-2 is 1.4 months, according to Kroll Bond Rating Agency. The latest issuance from JPMorgan Chase included mortgages that were ...

Credit Suisse plans to issue a $367.84 million jumbo mortgage-backed security, according to a preliminary term sheet obtained by Inside Nonconforming Markets. The deal is scheduled to close around July 30. While presale reports on CSMC Trust 2014-IVR3 have not been issued, Credit Suisse expects that the deal will have credit enhancement of 7.25 percent on the AAA-rated tranches, according to the term sheet. Some 56 percent of the mortgages ...

Jumbo borrowers in the market for mortgage financing often decide to work with the bank they already have a relationship with, according to new qualitative survey results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Real estate agents participating in the survey were asked what factors drive an affluent homebuyer’s lender selection when opting for mortgage financing instead of an all-cash home purchase. “I’ve found they like to ...

The Consumer Financial Protection Bureau’s request for comments on whether to allow for a right to cure on debt-to-income ratio issues for qualified mortgages prompted the typical divisions between lenders and consumer advocates. Lenders suggest that borrowers would benefit from the adjustment to QM standards, while consumer advocates warn that the change would weaken QM protections and encourage sloppy underwriting. The 43 percent DTI ratio standard for ...

While originations of loans outside of standards for qualified mortgages appear limited thus far, lenders continue to flood into the non-QM market. And industry analysts suggest that the sector has plenty of room to grow, particularly if the government-sponsored enterprises exit conservatorship. W.J. Bradley announced this week that it’s offering a number of new non-agency mortgage products, including non-QMs for prime borrowers. “We have recognized ...

SunTrust Banks settled criminal allegations this month relating to activity under the Home Affordable Modification Program. The $320 million settlement marked the first time a HAMP servicer paid a monetary penalty under the program. To this point, penalties for violations of HAMP guidelines have been relatively lenient, with the harshest maneuver being a temporary stop in incentive payments from the program. However, an investigation led by ...

CORRECTION: The jumbo mortgage-backed securities issuers and underwriters ranking published in the July 4, 2014, issue of Inside Nonconforming Markets has been revised due to a data error. The revised chart is available online. Citigroup agreed to a $7.0 billion settlement this week with federal regulators and certain states related to non-agency MBS activities prior to 2009. Associate Attorney General Tony West suggested that ... [Includes seven briefs]

A spike in issuance of jumbo mortgage-backed securities in the last days of the second quarter of 2014 wasn’t enough to boost issuance to the meager levels seen in the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Some $1.25 billion in jumbo MBS were issued in the second quarter, a 24.9 percent decline from the previous quarter. Four issuers brought deals to the market during the quarter ... [Includes one data chart]

The Treasury Department issued a wide-ranging request for comments last week as part of an effort to increase issuance of non-agency mortgage-backed securities. Treasury officials said they are working toward developing standards and practices for the non-agency MBS market. “The private-label securities market has been dormant since the financial crisis,” said Treasury Secretary Jacob Lew. “The fact is, we need to attract more private capital to the housing market ...

JPMorgan Chase issued a $303.75 million jumbo mortgage-backed security last week backed by 15-year fixed-rate mortgages. The deal suggests that there is some viability in securitization as the loans included in the deal were suitable to be held in bank portfolios and in fact were mostly originated by banks. First Republic Bank accounted for 55.1 percent of the contributions to J.P. Morgan Mortgage Trust 2014-2 followed by Chase itself with a ...