JPM continues to buck jumbo mortgage trend

JP Morgan
By Ryan Bolger
24 Sep 2014

JP Morgan intends to issue a new non-agency jumbo RMBS deal, according to a Kroll Bond Rating Agency presale released on Tuesday. Despite this being JP Morgan's third such deal this year, banks are generally opting to keep jumbo non-agency mortgages on their books, however.

New regulations and others yet to be finalised — including a requirement that ABS originators retain a proposed five percent stake in new issues — are thought to be discouraging banks from issuing mortgage-backed securities not guaranteed by Fannie Mae or Freddie Mac. 

“Bank portfolios have been aggressive buyers ...

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