Non-agency mortgage securitization volume accelerated during the final-three months of last year, with jumbo activity leading the way.
During all of last year, U.S. residential loan originations amounted to $1.89 trillion. Production picked up from $1.68 trillion in 2015.
Last year’s mortgage lending activity included $0.99 trillion in loans to finance a home purchase and $0.90 trillion in refinance production.
Moody’s Investors Service reported the statistics in the report,
Q4 2016: Resurgence in Jumbo RMBS Issuance; SFRs Lead Strong Credit Performance.
During the fourth-quarter 2016, there were 28 residential mortgage-backed securities issued. Activity picked up from 22 transactions in the third quarter. though issuance fell 42 percent from a year earlier.
The quarter-over-quarter gain was led by the prime jumbo sector.
The ratings agency said that prime issuance was up slightly on a quarter-over-quarter basis.
Moody’s noted that overall RMBS issuance volume for 2016 was lower than 2015.
J.P. Morgan Mortgage Trust issued four jumbo RMBS in 2016.
Other jumbo issuances were made by Shellpoint Co-Originator Trust and SoFi Mortgage Trust.
More nonprime and marketplace lending securitizations emerged in the fourth quarter. Three nonprime RMBS were issued last year by Caliber Home Loans.