The GSEs' loan limits increased for 2020, like clockwork. The higher limits could take a large bite out of non-agency jumbo lending in some states, according to a new analysis.
The parent company of United Wholesale Mortgage was the top originator of mortgages in prime non-agency MBS issued in the third quarter. Underwriting standards haven’t changed much in the past year. (Includes two data charts.)
The volume of jumbo originations improved in the third quarter but not as fast as the increase in total originations across the mortgage market, causing the jumbo sector to lose market share. (Includes data chart.)
Redwood’s mortgage banking income decreased in the third quarter as falling interest rates lessened demand for MBS. Execution rebounded in October after interest rates increased.
Moody’s assesses Quicken as an “average” originator of prime jumbos; Prosper ties up with BBVA USA to launch a HELOC product; Deephaven hires Kris-Ann Carduff as a vice president.
Production of jumbo mortgages at First Republic Bank and Flagstar Bank increased on a sequential basis in the third quarter. Volume was driven by refinances as interest rates fell during the quarter.
JPMorgan Chase Bank issued a deal this month that looks like it will meet requirements for favorable capital treatment by the OCC. The transactions could prompt similar issuance by other banks.
Several borrowers are opting for mortgages with balances right at the conforming loan limit even though interest rates on jumbos are often lower. Relatively tight underwriting standards for jumbos look to be the cause.
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