August 14, 2014
Latest from Inside Mortgage Finance
GSE loan sizes rose by 1.9% from the previous quarter according to estimates from Inside The GSEs
Private mortgage insurance companies continued their roll during the second quarter of 2014, capturing a larger share of the primary MI market away from the faltering FHA program, according to a new Inside Mortgage Finance analysis. Private MIs reported a total of $44.19 billion of new primary mortgage insurance written during the second quarter, a 38.0 percent jump in new business from the first three months of 2014. Private MIs accounted for 41.4 percent of total primary MI new business, the industry’s highest share of the market since the second quarter of 2008, when the housing market landslide was gaining speed. The Veterans Administration’s home loan guaranty program is also building...[Includes three data charts]
Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year as the two government-sponsored enterprises reported a significant downshift in repurchase activity. Through the first six months of the year, GSE profits were down nearly 81.7 percent from the first half of 2013. But Fannie and Freddie reaped huge profits in 2013 through hefty legal settlements, the capture of deferred tax assets and seller buybacks. “When you look back on 2013, our goal was...
Banks need incentives to issue non-agency mortgage-backed securities instead of holding loans in portfolio, according to boosters of the non-agency MBS market. The Federal Reserve’s monetary policies and capital requirements set by federal regulators have played a role in the shift from non-agency MBS issuance to banks holding loans in portfolio. “Historically, major banks were the predominant sponsors of private-label securities transactions, especially for 30-year jumbo fixed-rate loans, which are not a good asset/liability match for their balance sheets,” officials at Redwood Trust noted in a comment letter submitted to the Treasury Department. In June, the Treasury issued a request for comments on how to increase non-agency activity in the mortgage market. In 2013, only 4.8 percent of the estimated $272.0 billion in non-agency jumbo originations were included...
Latest Mortgage Data
- Fannie, Freddie MBS Business Activity Increases in July
- 2Q14 Profits Climb on Both Sides of Ledger
- Incorrect Info Leads the Way in Complaints About Credit Reports
- Private MIs, VA Overtake Faltering FHA Program
- GSEs Nonprime Holdings Continue to Run Off
- MBS & ABS Issuance at a Glance
- More Latest Data
The Federal Housing Finance Agency’s request for public comments last week on the structure for a proposed GSE security has some industry insiders wondering if this is the prelude to the eventual consolidation of “Fannie Mac.” The implementation of the single security issued and guaranteed by Fannie Mae and Freddie Mac would be part of a “multi-year initiative” to build a common securitization platform.
A new Inside Mortgage Trends analysis of bank call-report data confirms that mortgage banking profits strengthened significantly during the second quarter of 2014. Banks reported a combined $4.910 billion in mortgage banking income for the second quarter of this year, a 45.5 percent increase over the first three months of the year. Earnings releases from 21 publicly traded banks and thrifts showed a 31.5 percent increase in ... [Includes one data chart]
In its first case regarding deceptive mortgage advertising, the CFPB has ordered Atlanta-based Amerisave Mortgage Corp., an online mortgage lender, and its affiliate, Novo Appraisal Management Co., to pay $19.3 million in damages and a fine. The consent order settles charges the firms engaged in a deceptive bait-and-switch mortgage-lending scheme said to have harmed tens of thousands of consumers. Of the total payout, $14.8 million will be in the form of refunds to harmed consumers. The companies also agreed to pay a $4.5 million fine. Patrick Markert, the owner of both companies, as an individual, will pay an additional $1.5 million penalty. According to the CFPB, between mid-2011 and 2014, Amerisave advertised its interest rates and terms using online banner ...
Trustee responsibilities, the role of the government-sponsored enterprises, deal documentation, loan-level disclosures, servicing, ratings, assignee liability, regulatory uncertainty, lien priority, bondholder communication and incentives for banks. These are just a few of the issues that need to be addressed for non-agency MBS issuance to resume in a meaningful manner, according to industry participants. About 25 comment letters were submitted after a request from the Treasury ...
The notion of a common pass-through MBS issued by Fannie Mae and Freddie Mac was formally put in play this week, as the Federal Housing Finance Agency solicited comment on a proposed “single security” for the two government-sponsored enterprises. The Mortgage Bankers Association has been pushing the concept for several years, and it made it onto the FHFA’s formal agenda for the GSEs in 2014. Proponents say it would improve liquidity in the market and level out Freddie’s pricing disadvantage. Under the FHFA proposal, the new common MBS would adopt...
FHA Commissioner Carol Galante has announced plans to step down from her current post, leaving behind a Mutual Mortgage Insurance Fund that appears well on its way to recovery and a slumping FHA business. Industry response to Galante’s Aug. 12 announcement was mixed. Some stakeholders applauded her toughness and resolve in steering FHA through hard times, while others criticized her for policies that made it more difficult and costly for first-time homebuyers to obtain an FHA-insured mortgage loan. Galante’s nearly three-and-a-half year stint as FHA commissioner was highlighted by her efforts to stabilize the FHA’s ailing Mutual Mortgage Insurance Fund, reduce losses and improve lender oversight. She achieved these goals by creating a comprehensive risk-management structure at FHA, revamping FHA pricing and credit policies, and ...
- GSE Private Mortgage Insurance Profile 2Q14
- GSE Seller Profile: 2Q14
- Mortgage Profitability Report: 1Q14
- Top Mortgage Players: 1Q14
- Agency Condo Market: 2013
- GSE Repurchase Activity Full Year 2013
- Servicing Strategies and MSRs
- Non-Qualified Mortgages
- CFPB Exam and Enforcement
- Mortgage Buybacks Guide 2014
- Mortgage Originations Channels
- CFPB Mortgage Disclosure Requirements
- Qualified Residential Mortgages and Risk Retention
- CFPB's LO Comp Rule
- Ability-to-Repay Rule and Qualified Mortgages
- Fair Lending Compliance
- CFPB Regulation of Mortgage Servicing
Home-equity lending is beginning to show new life. My company (pick one):
- Plans to enter this market over the next 12 months.
- Is already making home equity loans and hopes to increase the offerings.
- Is in the market but dont expect much growth.
- Is not making second liens and has no plans to do so.
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