Could it be yet another jumbo bond deal from Redwood Trust? But here’s the obvious question: How come no one else in this industry has stepped up to the plate like Redwood except for a few fluke bonds here and there? Is Redwood crazy or do they see something that no one else does? Or maybe it’s a case of a company spending the time, energy and money to get comfortable with an asset class while others take the low-hanging fruit? However, we were talking to one top trade group official on Thursday who pointed out that, in time, all the Fannie/Freddie g-fee hikes coming down the pike (there’s been a few already this year) will eventually make it much more enticing for private sector firms to play a bigger role in the secondary market. We all lie in wait for that day…
In case you missed our "What We’re Hearing" blurb, one lender has amassed $100 million in nonprime loans with an eye toward securitizing them. We don’t know of any other details, but a large chunk of the $100 million is said to be jumbos. So, maybe Redwood (a REIT) won’t be so lonely for long…
Getting back to Redwood Trust: In its last jumbo deal Clayton reviewed 83% of the final pool, Allonhill 17%. We’re told that Redwood likes to use a variety of due diligence review firms and that mortgage analysts shouldn’t read too much into those numbers. (Nice try BC.) Of course, since none (and I do mean none) of Redwood’s jumbo loans have gone into arrears, it means someone is doing a good job…
One broker sent us a recent note from Stearns Lending, which says the wholesaler is now requiring LOs to fill out an "anti-steering" loan options disclosure form–to be used on all lender-paid wholesale submissions. If you have any other program changes from wholesalers send them my way at
In last weekend’s column we touched on a new warehouse lender called Fortis Capital, which is pitching a "broker to banker" product of lines. The firm’s pricing is dirt cheap, according to one expert we talked to about the firm. Unfortunately, getting in touch with the company is next to impossible. Multiple emails and telephone calls have gone unreturned. (And I do mean multiple.) See the Monday print edition of NMN. Don’t subscribe? Call 800-221-1809.
WASHINGTON NEWS: The U.S. Department of Agriculture has acted administratively so that borrowers in 900 communities in 48 states will continue to have access to Rural Housing Service-backed single-family loans for at least another six months. (Reporting by NMN’s Brian Collins.)
TWITTER (MORTGAGE) NEWS: Watch my Twitter feed where I provide updates on breaking stories. Just visit Twitter and plug in my name…
MORTGAGE DATA: NMN recently published the 2Q edition of its exclusive Quarterly Data Report product. It includes the nation’s top 100 lenders and servicers and much more including wholesalers, correspondents and retailers. To order email
DATA SNIPPET: It’s time to point out a firm with ultra low delinquencies. That would be USAA Federal Savings Bank of San Antonio, which had a residential past due rate of just 0.29% at June. 30. Our delinquency rankings appear in the QDR.
MORTGAGE PEOPLE: Grand Bank NA of New Jersey named Andrew Pollock CEO of its ICON Residential unit, effective immediately. Of course, ICON is being sold. (See the NMN website.)
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KEY INDUSTRY MORTGAGE SHOWS: In October NMN will hold its annual technology awards show. It’s being put together by our esteemed technology editor Austin Kilgore. For more information visit
FINAL WORD: Come on down R.A. Dickey of the New York (Baseball) Mets. Congrats on your 20th. See you on Mount Kilimanjaro this summer.
