Issuance of prime non-agency MBS will likely increase this year, according to projections by industry analysts. The big wildcard is how FHFA’s efforts to reduce the GSEs’ footprint will impact the non-agency market.
After a lull in December, issuers are bringing non-agency MBS to the market. Redwood Trust is planning a deal with seasoned mortgages while New Residential has an expanded-credit MBS.
The retail share of jumbo originations is up this year even with top-ranked Wells Fargo placing a greater emphasis on the correspondent channel. More than 80% of jumbos originated in the third quarter came through retail means. (Includes data chart.)
Among a group of 30 prominent servicers of jumbo mortgages, only three shrank their portfolios in the past year. Wells Fargo remained the top-ranked servicer as of September 30, though the bank lost some market share. (Includes data chart.)
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.
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