Jumbo mortgages

The company is a new player in the market linked to Cerberus, an investor in pre-downturn jumbo securities market participants.

Mortgage applications declined for the third consecutive week as fewer borrowers are choosing to refinance due to rising interest rates.

With the right products and markets, loan officers can be better compensated even as they close fewer loans.

Redwood Trust Inc., the specialist in jumbo mortgages, said it entered into a risk-sharing deal with government-backed Fannie Mae on smaller home loans.

The move comes as the FHFA seeks to curtail advances to mortgage REITs and tighten FHLB membership rules.

Count Two Harbors Investment Corp. among investors looking for profits in riskier home loans — and expecting a market for bonds backed by them to re-emerge even with safer issuance showing limited signs of life.

The recent dip in mortgage rates isn't likely to spur a refi boom, but with the industry now into the fourth quarter of a tough year, many lenders are looking for ways to boost business.

JPMorgan began marketing another $402 million of securities backed by residential mortgages this week, adding to its robust pipeline of fourth-quarter deals.