Jumbo mortgages

The $401.2 million COLT 2018-1 is the eighth overall securitization of non-qualified jumbo mortgages issued by the Lone Star Funds affiliate.

PennyMac Financial Services Inc. is setting up its new mortgage broker channel to target home-buyer and higher-balance loan segments, and eventually become one of the dominant players in the space.

The new cap on the mortgage interest deduction should help the first time home buyer market by forcing sellers to lower prices, at least in the near term.

There were fewer mortgage programs available to borrowers at the lower end of the credit spectrum in December, resulting in an overall decrease in credit availability.

That’s an about-face from the bank’s previous transaction, completed in October, which was backed by fixed-rate mortgages, nearly half of which were underwritten to standards for purchase by Fannie Mae or Freddie Mac.

A slight decrease in the number of jumbo investor offerings contributed to lower consecutive-month credit availability in October, according to the Mortgage Bankers Association.

Slightly looser underwriting outside the government sector is primarily responsible for the latest increase in credit availability.

The shift to a purchase market and an increase in wholesale mortgage originations contributed to a nearly 17% year-over-year rise in fraud risk during the second quarter, according to CoreLogic.

Looser underwriting standards for agency-eligible adjustable-rate mortgages helped increase credit availability in August to its highest level since April, according to the Mortgage Bankers Association.

Redwood Trust is raising $225 million in a debt offering with the proceeds to be used to repay borrowings that come due next year.