Jumbo mortgages have provided commercial banks and thrifts with good profits margins. Of course, it helps that deposit rates are almost non-existent.

The loans to be included in the deal are similar to the types of mortgages that have been included in jumbo MBS issued in recent years.

Industry analysts suggest that while liquidity for new jumbo MBS remains limited, the securities can be a good investment.

One of the new model reps addresses the Consumer Financial Protection Bureau’s ability to repay rule and standards for qualified mortgages.

Five Oaks is approved to borrow up to $500 million in FHLBank advances.

KBRA noted that this will be the first post-crisis deal to include a significant contribution of mortgages from UBS Bank.

Some lenders suggest that while jumbo lending with loan brokers is viable, retail originations tend to be more attractive.

Among the top five contributors to jumbo MBS, all were nonbanks, except First Republic.

But the analysts eventually conceded they didn’t have data on borrowers’ assets, income, LTVs and more.

Although some lenders love having a desk in a high-volume Realtor’s office, others loathe the practice. “I lost so much business to those places over the years,” he said. “I refused to pay $5,000 for a desk…”