Magazine article Mortgage Banking

Not Much Going On

Magazine article Mortgage Banking

Not Much Going On

Article excerpt

The private secondary mortgage market for home loans is still pretty much in hibernation. All you have to do is look at securitization volume for jumbo prime originations. It tells you everything you need to know about the current state of the secondary. There are spider webs all over the main securitization machinery.

[ILLUSTRATION OMITTED]

We want to thank Inside Mortgage Finance for sharing its stats with our author Robert Stowe England for his article this month titled "A Total RMBS Reboot." This sentence from his story captures the lay of the land pretty well: "The weakness in the RMBS position can be seen in the fact that last year's $10 billion in new jumbo RMBS issuance was dwarfed by the $235 billion overall size of the jumbo origination market...." So 96 percent of those jumbo loans were headed straight for someone's portfolio--or at least someplace other than the mortgage securities market.

Non-agency RMBS issuance peaked at a staggering $1.19 trillion in 2005, England reports. Then volume dropped to just "$21.1 billion in 2011 before rising modestly to the $30 billion range in the last two years," he writes.

This year it looks like we will be stuck following pretty much the same storyline--with a slight uptick. …

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