August 18, 2016
Latest from Inside Mortgage Finance
Total conventional-conforming mortgage originations rose by 36.0 percent from the previous quarter according to estimates from Inside Mortgage Finance
The boom in mortgage originations during the second quarter of 2016 pushed volume higher in all the major product categories, according to a new Inside Mortgage Finance ranking and analysis. The conventional-conforming sector saw the biggest increase in originations, a 36.0 percent jump from the first three months of the year. Lenders produced an estimated $272.0 billion of conventional-conforming mortgages, which represented ... [Includes two data charts]
Mortgage M&A Activity Continues Apace as Private Equity Firms Get More Comfortable with the Business
Since the beginning of summer, at least eight mortgage-related merger and acquisition deals have come to light and more are on the way, according to an analysis by Inside Mortgage Finance. To date, most of the activity has involved nonbank purchasers, with at least two of the acquirers – Home Point Financial and Caliber Home Loans – having private equity behind them. And of the eight, only one involves the sale of stock through a “franchise” transaction ...
Arch Capital to Acquire AIG’s United Guaranty Corp., Merger Would Create Largest Private MI in the World
American International Group early this week announced an agreement to sell its mortgage insurance subsidiary, United Guaranty Corp., to Arch Capital Group for $3.4 billion in cash and securities as part of AIG’s plan to become a leaner, more profitable insurer. As of the midway point in 2016, UG was the top private MI in traditional new insurance written, with an 18.8 percent share of the market. Arch MI ranked as the smallest of the seven active firms, with an ...
Latest Mortgage Data
- Fannie Mae Re-claims Some Share in FTHB Market
- Nonbanks Battered by MSR Accounting in 2Q16
- Bank Holdings of Residential MBS Climb to New Record in June, Heavy Increase in GSE Paper
- FHA Endorsements Climb on Purchase Activity in 2Q16
- Freddie Quicker at Reducing Nonprime Holdings
- Mortgage Complaints Show Double-Digit Decline in 2Q16
- More Latest Data
The CFPB’s TILA/RESPA Integrated Disclosure Rule continues to have mixed results, at least from the perspective of the nation’s mortgage originator community. According to the recently released results of a survey by the National Association of Realtors of mortgage originators during the second quarter of 2016, delays attributed to TRID eased between the first and second quarters of the year, as did lenders’ reluctance to offer pre-approval letters, while cancellations ticked up. Originators were asked, since April 1, what share of their company’s mortgage transactions had been delayed or cancelled due to a TRID-related issue versus non-TRID issues. Mortgages delayed due to TRID ticked barely down, from 1.8 percent in 1Q16 to 1.7 percent in 2Q16. In the fourth quarter ...
Commercial banks and savings institutions reported a combined $3.581 billion in mortgage-banking income during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of call reports. That was up 8.3 percent from the $3.307 billion the industry reported for the first quarter of 2016. For the first six months of the year, banks reported $6.888 billion in mortgage-banking profits, down 31.7 percent from the same period in ... [Includes one data chart]
Commercial banks and savings institutions continued to load up on residential MBS during the second quarter of 2016, pushing their investment in the sector to a new high, according to a new analysis and ranking by Inside MBS & ABS. Banks and thrifts reported MBS holdings of $1.684 trillion as of the end of June, a 1.4 percent increase since the previous quarter. These are long-term holdings in banks’ held-to-maturity and available-for-sale portfolios. The industry held another $46.02 billion of MBS in their trading accounts. Not surprisingly, all of the gain came in agency MBS, particularly pass-through securities issued by Fannie Mae and Freddie Mac. The industry’s aggregate holdings of these securities, $867.64 billion, were up 4.1 percent from the ...
Fannie Mae has re-claimed some lost market share in the prized first-time homebuyer market during the first half of 2016, according to a new Inside The GSEs analysis and ranking. Fannie securitized $41.70 billion of first-time buyer purchase loans in the first six months of this year. That represented 28.4 percent of the total FTHB business securitized by the three agencies, up from 27.8 percent for all of last year. Freddie Mac, however, is still playing catch-up. The GSE accounted for 17.0 percent of the agency FTHB market, compared to 17.8 percent in 2015. The top securitizer of first-timer loans remained Ginnie Mae, with a 54.6 percent share of the sector.
Two Harbors Investment and other nonbank conduits exited the jumbo market just before pricing for new jumbo mortgage-backed securities improved, according to industry participants. “The difference between a bulk sale execution and a Sequoia execution right now is only an eighth of a point,” Marty Hughes, CEO of Redwood Trust, said this week during the real estate investment trust’s earnings call. “That’s the tightest it’s probably been in a year and a half.” Christopher Abate, Redwood’s ...
FHA single-family endorsement activity saw a solid 15.0 percent increase from the first to the second quarter of 2016, but the program lost market share in the red-hot primary mortgage insurance business. The FHA endorsed a total of $61.54 billion of forward mortgages during the second quarter, according to a new Inside FHA/VA Lending analysis and ranking. That brought year-to-date production to $115.06 billion, a 9.0 percent increase over ... [Includes two data charts]
The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?
- Better by 1% to 10%.
- Better by 11% to 25%.
- Off the charts better. Applications are great now.
- Worse than 1H, but not by much.
- A lot worse. But not sure on the damage.
Most Popular Stories
- Short Takes: A 25 Percent Chance Uncle Sam Will Lose the GSE Lawsuits / Risk-Sharing Depletes Shareholder Value / Former Fannie CEO Mudd Settles with SEC / Mudds Second Act Didnt Last Long / A New Hire for Closing Corp.
- New GSE Application Allows for Cell Phone Numbers, Email Address, More. Industry Applauds
- The Final Tally: Nonbanks Battered by MSR Accounting in 2Q16
- Fannie Reclaims (Some of the) Share it Lost in First-Time Homebuyer Market
- Mortgage M&A Activity Continues Apace; Eight Deals in Two Months