ARMs

JPMorgan Chase & Co. plans to sell credit risk on a $531 million portfolio of adjustable-rate mortgages, a new kind of offering by the bank and the latest example of the industry's efforts to de-risk balance sheets.

At current levels, monthly payments could surge by 39% between 2023 and 2025 for an approximately $250,000 loan, according to new research.

The loans accounted for 18.6% of conventional single-family dollar volume in April, quadrupling its share of business at the peak of the refinance boom, according to Corelogic.

Consumers taking out adjustable-rate mortgages last year put down a median down payment of 23.6%, researchers at the real estate brokerage found.

A change in the relationship between fixed and adjustable loans has increased some consumers’ interest in the latter market.

The acquirer will use the liquidation of a residential mortgage company’s assets to move several notches up in the rankings.

Even though product availability is now at the same point where it was one year ago, it remains at 2014 levels.

The modifiable templates are a follow-up to a similar notification the organization created in 2019 for lender use.

The movement in the MBA’s credit availability index suggests that, amid forecasts of diminished refinancing, lenders want to accommodate consumers buying homes, but they aren’t yet ready to lend as freely as they did before the pandemic.

Lenders also increased jumbo product availability as well as rolling out new SOFR-indexed ARMs.