Rising home prices fuel the private label market

JP Morgan, through its private label conduit, JP Morgan Mortgage Trust, so far this year, has sponsored 13 private label securitization deals backed by jumbo loans valued at $ 13.8 billion.

The deals, ongoing until the end of October, involved more than 14,000 jumbo mortgages, according to presale reports from rating agencies. Data shows that JP Morgan has been a dominant force in the jumbo loan securitization market so far this year.

MAXEX, an Atlanta-based digital mortgage exchange in which JP Morgan is an investor, released a report on private label market activity this month, revealing that there were a total of eight jumbo loan securitizations assessed in September alone. They were backed by pools of mortgages valued at $ 5.73 billion, according to the MADEX report and additional information from Kroll Bond Rating Agency. The offers included “a massive JP Morgan deal,” which was priced at $ 1.647 billion, “and included loans negotiated through the [MAXEX] exchange, ”the report says.

The other jumbo securitization transactions in September, with the associated loan pool securities, were carried out by the following issuers:

  • Wells Fargo, $ 644 million
  • Redwood Trust, $ 449 million
  • Rocket Mortgage, $ 968 million
  • Goldman Sachs, $ 874 million
  • Citigroup, $ 345 million
  • AIG, $ 429 million
  • Provident funding, $ 372 million

The total residential mortgage-backed securities (RMBS) issuance of jumbo loans for 2021 now exceeds $ 33 billion, according to the MADEX report.

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