August 20, 2015
Latest from Inside Mortgage Finance
Total first lien retail mortgage originations rose by 23.5 percentage points from the previous quarter according to estimates from Inside Mortgage Finance
All three mortgage production channels saw solid gains in originations from the first quarter to the second quarter of 2015, but correspondents had the best of it. Correspondent lenders generated an estimated $132 billion of new mortgages during the second quarter, according to a new Inside Mortgage Finance ranking and market analysis. That was up 26.9 percent from the first quarter, a few clicks faster than the overall 23.6 percent increase in production volume. The correspondent share edged...[Includes four data tables]
CFPB Decided Against Early Adoption of New TRID Rule to Avoid Disclosure Mismatch; ABA Calls for Transition Period
While regulators sometimes give lenders the green light to implement new rules before the legal effective date, the Consumer Financial Protection Bureau made no such recommendation for controversial new mortgage disclosures that take effect Oct. 3. An argument could be made for early adoption of the so-called TRID disclosures if they are truly beneficial to consumers and lenders have enough time to test the new forms, said stakeholders. The original effective date was Aug. 1, but that was moved back because of an administrative error by the CFPB. Some lenders have said they were ready for TRID, which consolidates four current forms under the Truth in Lending Act and the Real Estate Settlement Procedures Act into two integrated disclosures, at the beginning of this year. The CFPB is...
FHA Delinquency Rate Declines in the Second Quarter; Agency, MBA Data Differ on 30-Day, 60-Day Delinquencies
The overall delinquency rate for FHA loans dropped in the second quarter of 2015, although late payments were up in the 30-day and 60-day categories on a seasonally adjusted basis, according to results of the Mortgage Bankers Association’s latest national delinquency survey. The FHA reported slightly different trends. The serious delinquency rate in June was down 30 basis points from March’s 6.42 percent on an unadjusted basis. Taking into account seasonal factors, the drop was just 2 bps. MBA data showed...
Latest Mortgage Data
- GSEs Losing Race for First-Time Homebuyers to FHA/VA Financing
- GSE Buyback Activity Slows Again in 2Q15
- Consumer Complaints About Debt Collection Plunge From Year Ago
- VA Sets New Originations Record, FHA Continues Winning Streak
- GSEs Alt A Performance Improves, Losses Persist
- MBS & ABS Issuance at a Glance
- More Latest Data
Fannie Mae and Freddie Mac reported big declines in mortgage repurchases and their inventories of unresolved buyback requests during the second quarter of 2015, according to a new Inside The GSEs analysis of disclosures filed with the Securities and Exchange Commission. Freddie reported a 19.1 percent drop in repurchases from the first to the second quarter of 2015, while Fannie’s decline was a more modest 3.9 percent. Together, the two GSEs reported $436.3 million in repurchased or indemnified loans during the second quarter, the lowest amount since Fannie, Freddie and other “securitizers” began reporting repurchase activity in early 2012. On a combined basis, Fannie and Freddie reported new lows in pending repurchases ($732.2 million) and disputed buyback requests...
Commercial banks and thrifts reported a hefty increase in profits from their mortgage-banking operations during the second quarter of 2015, according to a new Inside Mortgage Trends analysis of call reports. The industry generated $6.09 billion in mortgage-banking income during the second quarter, a 52.2 percent improvement over the first three months of the year. It was the highest income for the banking industry since the second quarter of 2013, when ... [Includes one data chart]
The Federal Financial Institutions Examination Council should institute an official transition period to provide lenders greater clarity and certainty in anticipation of the CFPB’s new TILA/RESPA integrated disclosure rule (TRID) slated to take effect Oct. 3, the American Bankers Association said in a letter to the financial regulatory group. The CFPB is one of the regulatory bodies that comprise the FFIEC. “We request that the FFIEC – on behalf of all banking regulators – formally establish a transition period and clarify how regulators will oversee and examine regulated institutions for TRID compliance during this time,” the ABA said in a recent letter to the council. “In so doing, the FFIEC would provide needed certainty to the credit markets and encourage lenders to ...
More than a year after the Consumer Financial Protection Bureau’s standards for qualified mortgages took effect, originations of near-prime non-QMs remain limited. However, industry participants are optimistic that originations will pick up and Lone Star Funds recently jolted the sector with a non-agency mortgage-backed security. The $72 million non-agency MBS from Lone Star was backed by non-QMs originated by Caliber Home Loans, a lender owned by the private-equity firm ...
Commercial banks and savings institutions continued to grow their investments in agency MBS during the second quarter of 2015, according to a new Inside MBS & ABS ranking and analysis. Banks and thrifts held $1.583 trillion of agency and non-agency MBS on their balance sheets at the end of June. That was up just 0.3 percent from the first quarter, but it was the highest level since the first nine months of 2012, when bank and thrift MBS holdings topped $1.60 trillion. All the gain came...[Includes two data tables]
VA originations set a new record in the second quarter of 2015 with lenders funding $39.6 billion in VA loans while FHA continued to ramp up its volume, according to new figures compiled by Inside FHA/VA Lending. The latest production result surpassed VA’s previous record origination total of $37.5 billion in the first quarter of 2013. Lenders attributed the increase to their effort to promote the VA Home Loan Guaranty program through broadcast, print and social media “We are doing all we can every day to promote the VA product,” said one VA lender. “Many veterans are not familiar with the program and they don’t know what’s available to them. They don’t understand what the government is actually doing for them through this VA portal.” The VA program allows 100 percent financing on a 30-year fixed-rate single-family mortgage. VA production in the second quarter jumped 58.2 percent compared to ... [2 charts]