March 6, 2014
Latest from Inside Mortgage Finance
Total conventional-conforming mortgage production fell by 38.6% from the previous quarter according to estimates from Inside Mortgage Finance
Non-agency mortgage lending staged a minor revolt in 2013, reversing two years of increasing domination of the market by Fannie Mae, Freddie Mac and Ginnie Mae. The only growth spots in the mortgage market last year were in jumbo originations and home-equity lending, according to a new ranking and analysis by Inside Mortgage Finance. Jumbo production surged 20.9 percent from 2012 levels to an estimated $272 billion – the strongest output for the sector since 2007. Home-equity lending was...[Includes two data charts]
The Obama administration is asking Congress for authority to charge FHA lenders an “administrative fee” to help pay for improvements to the FHA quality assurance program. FHA wants to build a new quality assurance framework that will provide lenders more clarity about the agency’s expectations regarding the loan production process, said FHA Commissioner Carol Galante during a media briefing on provisions in the administration’s fiscal 2015 budget proposal that affect the Department of Housing and Urban Development. The idea is...
Warehouse lines of credit extended by commercial banks to non-depository lenders fell a modest 11.8 percent in the fourth quarter on a sequential basis, but executives who work in the sector are reporting usage ratios as low as 20 percent. Based on exclusive survey figures compiled by Inside Mortgage Finance, warehouse providers had an estimated $30.0 billion in commitments at Dec. 31 compared to $34.0 billion at the end of the third quarter. But a commitment is...[Includes one data chart]
Latest Mortgage Data
Fannie Mae and Freddie Mac last year wrapped up most of the massive amount of repurchase demands they made on legacy loans originated before 2008, but the government-sponsored enterprises are looking more closely at new production and, increasingly, servicer performance. Together, Fannie and Freddie reported a total of $37.87 billion in mortgage repurchases and other settlements of buyback claims, which typically means ... [Includes one data chart]
Higher guaranty fees and improving housing markets propelled Fannie Mae and Freddie Mac to banner profits during the fourth quarter of 2013 and for the year as whole. The two GSEs reported a combined 2013 net income of $133 billion, helped by significant nonrecurring items related to deferred tax allowance valuation reversals, private-label residential mortgage-backed security lawsuit settlements, increased representation and warranty settlements, and sizeable decreases in loan-loss reserves.
New production of single-family MBS by Fannie Mae, Freddie Mac and Ginnie Mae fell for the tenth consecutive month in February, hitting a low that hasn’t been seen since well before the financial crisis and housing recession. The three agencies produced just $64.34 billion in single-family MBS during February, a 6.1 percent drop from the previous month, according to a new Inside MBS & ABS ranking and analysis. That was the lowest monthly agency MBS issuance since March 2005, when new issuance totaled just $64.09 billion. In those days, non-agency MBS issuance substantially exceeded agency production, and a month’s worth of new jumbo, subprime and Alt A deals ($89.41 billion in March 2005) represented about three years of new issuance in today’s market. The first two months of 2014 generated...[Includes two data charts]
In another sign of how serious the CFPB intends to be in pursuing alleged mortgage servicing abuses, the bureau is planning to take an enforcement action against Green Tree Servicing LLC, a wholly owned subsidiary of Walter Investment Management Corp., for alleged violations of federal consumer financial laws."On Feb. 20, 2014, the Federal Trade Commission and CFPB staff advised Green Tree that it has sought authority to bring an enforcement action and negotiate a resolution related to alleged violations of various federal consumer financial laws," the parent company said last week in earnings-related disclosures with the Securities and Exchange Commission.
Officials at Redwood Trust, the leader in issuance of jumbo mortgage-backed securities since 2010, suggested this week that issuance of jumbo MBS from the firm this year likely won't hit the level seen in 2013. "Our preferred distribution for jumbo loans is securitization since we can retain attractive investments for our portfolio," Brett Nicholas, Redwood's president, said this week on a call with investors. "Today, however, whole-loan sales offer better execution." He said...
Slowing refinance activity and higher mortgage insurance premiums took a toll on FHA loan production in the fourth quarter of 2013, according to Inside FHA Lending's analysis of FHA data. Overall FHA endorsements fell 24.3 percent from the third quarter as the year ended with $210.0 billion. This was down 9.6 percent from total FHA loans originated in 2012. The year-s top five FHA lenders -- Wells Fargo, Quicken Loans, JPMorgan Chase, Freedom Mortgage and Bank of America -- combined for 21.9 percent, or $46.0 billion, of total originations, down ... [includes one chart]
- GSE Seller Profile: 4Q13
- Top Mortgage Players: 3Q13
- GSE Repurchase Activity First Half 2013
- Mortgage Profitability Report: 3Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
What is your mortgage servicing rights strategy for the year?
- We plan to originate and keep all of our MSRs.
- We sell all our MSRs "servicing released" for cash right away.
- We have a strategy of selling some of our MSRs, but only when we need to.
- None of these describes our 2014 strategy.
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