April 20, 2017

Latest from Inside Mortgage Finance

Total Ginnie Mae MBS issuance fell by 24.8 percent from the previous quarter according to estimates from Inside FHA/VA

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Agency Servicing Market Continued Growing In 1Q17 as Nonbank Appetite Remained Robust

The outstanding supply of Fannie Mae, Freddie Mac and Ginnie Mae servicing continued to grow during the first quarter of 2017 despite a downturn in new mortgage-backed securities issuance by the three agencies, according to a new analysis and ranking by Inside Mortgage Finance. A total of $6.225 trillion of agency single-family MBS was outstanding at the end of March, up 1.4 percent from December 2016. That number does not include agency servicing of whole loans held on the books of Fannie and Freddie, or a smattering of adjustable-rate mortgages in seasoned Freddie securities. Freddie posted...[Includes two data tables]


The Early Read: Bank Mortgage Lending Down in 1Q17, Nonbanks Fare a Little Better

Based on mortgage results reported thus far, the first quarter was a nasty time for new originations for both the megabanks and some of the regionals, with non-depositories reporting slightly more benign production figures. Market leader Wells Fargo posted a hefty 38.9 percent one-quarter drop in mortgage originations. Second-ranked JPMorgan Chase reported a slightly less severe 23.0 percent drop in home loan funding. Citigroup, which a few months back made a strategic decision to deemphasize its role in home lending, suffered a 32.1 percent drop. Then there’s...

CFPB Proposes Clarifications to HMDA Rule, But Industry Says Problems Remain, Delay Needed

Most of the provisions of the Home Mortgage Disclosure Act final rule the Consumer Financial Protection Bureau promulgated back in 2015 won’t take effect until January 2018, and already the agency is proposing a host of clarifications, technical corrections and minor changes with the stated goal of fostering lender compliance. Among the suggested alterations to the CFPB’s proposed rule, issued last week, is the clarification of certain key terms, such as “temporary financing” and “automated underwriting system.” The proposal also would establish...

Feature Stories

Inside The GSEs

Nonbanks Keep Building Market Share in GSE Mortgage Servicing

Nonbank mortgage servicers – especially those that aren’t juggernauts in the mortgage lending business – were the fastest-growing segment of the GSE servicing market during the first quarter of 2017. A new Inside The GSEs analysis shows that nonbank servicers accounted for 33.3 percent of the $4.552 trillion supply of Fannie Mae and Freddie Mac servicing outstanding at the end of March. The analysis is based on single-family loans in GSE mortgage-backed securities and does not include whole loans held by Fannie and Freddie in portfolio. Nonbanks increased...[Includes two data tables]

Inside MBS & ABS

Non-Agency MBS Issuance Up Substantially In Early 2017 on Heavy Flow of S&D Deals

A total of $13.38 billion of non-agency MBS was issued during the first quarter of 2017, a sharp 67.1 percent jump from the final quarter of last year, a new Inside MBS & ABS analysis and ranking reveals. Although most of the major segments posted solid increases, the scratch-and-dent market was the star of the show. The $8.09 billion of these deals issued in the first three months of the new year represented 60.5 percent of total production and it more than doubled the fourth-quarter total. The top two issuers of non-agency MBS – Chimera Investment and Cerberus Capital – earned...[Includes three data tables]

Inside Mortgage Trends

Servicing Transfer Activity Slowed in 1Q17 Despite Spike in Freddie Bulk Deals

The secondary market in agency mortgage servicing rights cooled off in the first quarter of 2017 after a hectic end to 2016, according to an exclusive analysis and ranking by Inside Mortgage Trends. A total of $109.78 billion of agency MSR changed hands during the first three months of the year, down 32.9 percent from the fourth quarter of 2016. Part of that was due to a 26.2 percent decline in new business volume at Fannie Mae, Freddie Mac and Ginnie ... [Includes three data charts]

Inside Nonconforming Markets

Underwriting Standards for Jumbo MBS Return to Norm in First Quarter of 2017

After some tightening in the fourth quarter of 2016, issuers of prime non-agency mortgage-backed securities in the first quarter of 2017 largely returned to the underwriting standards typically seen in the sector, according to an analysis by Inside Nonconforming Markets. Some $2.60 billion of prime non-agency MBS was issued during the quarter, spread across six deals, including a $1.03 billion issuance by JPMorgan Chase. Underwriting ... [Includes two data charts]

Inside FHA/VA Lending

PennyMac Claims Top Rank in Ginnie MBS Production in 1Q17

There is a new boss in the Ginnie Mae mortgage-backed securities market. PennyMac Financial rose to the top of the issuer ranking in the first quarter of 2017 despite a sharp decline in volume, according to a new analysis and ranking by Inside FHA/VA Lending. PennyMac issued $10.78 billion of single-family Ginnie securities during the first three months of the year. The figures in this analysis are based on Ginnie loan-level disclosures, which truncate loan amounts to $1,000 increments. PennyMac’s first-quarter production was off 27.9 percent from the fourth quarter of 2016, a slightly bigger decline than the 24.8 percent drop in overall Ginnie issuance. Even though the firm fared slightly worse than the total market, its first-quarter downturn was less severe than Wells Fargo’s. Wells has been the top Ginnie producer for a long time, as well as the top player in most segments of the ... [ Charts ]

Inside the CFPB

CFPB Reaffirms its RESPA View in its Latest Filing in PHH Case

Well, the good news for the mortgage industry is that someone finally got around to talking about the Real Estate Settlement Procedures Act when it came time to file another brief in PHH Corp. v. CFPB. But the bad news: It was the CFPB, and it doubled down on the main arguments it made the first time around, reaffirming its controversial interpretation. The CFPB insisted Director Richard Cordray correctly interpreted the act. First, the agency said PHH’s “kickback scheme” violated RESPA. The interpretation of RESPA by the three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit was incorrect, said the CFPB. “Its crucial error was holding that the meaning of section 8(c)(2) of RESPA – in ...


With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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