home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Jumbo Activity Stabilizes

$35.0 billion Q3 securitizations

February 6, 2008


Third quarter securitizations of jumbo mortgages held up, according to a new ratings agency report. And while a major jumbo lender is optimistic about upcoming activity, activity at one luxury home builder suggests further softening is ahead.

Securitizations of jumbo loans, those over the conforming limit of $417,000, were $35.0 billion during the third quarter, Standard & Poor's Ratings Services reported today. Voume edged down slightly from $35.8 billion in the second quarter.

The modest decrease in the issuance of jumbo residential-backed mortgage securities followed a 26 percent second quarter drop from the first quarter's $48.3 billion, S&P said.

While issuance of jumbo fixed-rate deals was down 12 percent during the latest period, adjustable-rate mortgages saw a 22 percent increase from the second quarter, according to the report. ARMs accounted for about 38 percent of third quarter jumbo issuance, climbing from 30 percent in the prior quarter.

Jumbo mortgage lender Thornburg Mortgage Inc., which briefly halted new business during August as the credit markets were in a free fall, reported Monday that it returned to profitability in the fourth quarter.

The Santa Fe, N.M.-based company, which expects its origination volume to grow, also reported that had a successful $230 million public offering last month as well as a successful securitization at an attractive cost of funds and spread.

"We have begun to see financing conditions improve," Thornburg President and Chief Executive Officer Larry Goldstone said in the earnings announcement.

Jumbo loan activity is closely related to the sale of high-end residences, and Houston Realtor Steven Kleinman of Oakington Realty Inc. sees luxury homes holding up in his market.

Kleinman, who said his company handled more than $40 million in property transactions last year, noted Houston has added more than 75,000 jobs during the past 12 months -- many in high paying fields including medical and energy.

"Those professionals typically seek more upscale residences and locations close-in to their offices," he explained.

Kleinman added that sales of existing luxury homes in Houston will not lag too far behind 2007 sales figures.

But the outlook for high-end home sales isn't so rosy around the rest of the country.

Luxury homebuilder Toll Brothers Inc. announced today that there were 904 gross signed contracts for $573 million during the fiscal first quarter 2008 ended on Jan. 31. Activity fell from 1,073 contracts for $694 million in the fourth quarter and 1,463 contracts for $1,070 million a year earlier.

Toll Brothers said it also saw its average contract price fall to $634,000 from $646,000 in the prior quarter and $730,000 a year earlier.

"The housing market remains very weak in most areas," Toll Brothers Chairman and Chief Executive Officer Robert I. Toll said in the statement. "Based on current traffic and deposits, we are not yet seeing much light at the end of the tunnel."

Toll added, "buyers seem to be hiding."

The drop in activity is an indication that jumbo RMBS volume may continue falling through the first quarter of this year.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: [email protected]

Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders