What We're Hearing

The jumbo business is back! Okay, maybe it's not back with a capital 'B' but here's an interesting tidbit about the recent Redwood Trust jumbo securitization that came to market his week: The face amount of the offering was $238 million -- but the company had orders from investors totaling $1.2 billion. We understand that Redwood is already working on a second jumbo deal. Meanwhile, next week publicly traded vulture fund PennyMac releases its earnings. The company has been working on launching a conduit but has been tightlipped on details. Perhaps, when its results are released PennyMac will provide more color on the conduit. There has been some speculation that it too is eyeing jumbos. Penny Mac's residential servicing affiliate recently hired Steve Bailey to oversee all facets of servicing. Bailey joins the company from Bank of America, the nation's largest servicer of first and second liens. The ranking figures are courtesy of the Quarterly Data Report...