September 29, 2016
Latest from Inside Mortgage Finance
Total mortgage servicing outstanding rose by 0.6 percent from the previous quarter according to estimates from Inside Mortgage Finance
During the second quarter, Fannie Mae, Freddie Mac and the Veterans Affairs home loan guaranty program all saw significant increases in production of “agency jumbo” loans – mortgages with loan amounts exceeding the baseline $417,00 agency loan limit. A new Inside Mortgage Finance analysis reveals that the agencies’ combined jumbo production, including FHA activity, rose 53.3 percent to $36.2 billion during the second quarter. That represented the highest quarterly total since “emergency” high-cost loan limits were established in the aftermath of the financial crisis. The FHA had...[Includes three data tables]
To Ease Investor Concerns, VA Mulling Policy Change To Resolve QM-Related Issues in the IRRRL Program
The Department of Veterans Affairs is drafting a new policy to address ongoing confusion about its Interest Rate Reduction Refinance Loan program and ease investor anxiety. The uncertainty among VA lenders stems from the treatment of IRRRLs under the VA’s interim final rule defining what constitutes a “qualified mortgage.” That rule took...
In general, it hasn’t been a pretty picture this year when it comes to the sale of “bulk” mortgage servicing rights, especially Ginnie Mae receivables. According to figures compiled by affiliate publication Inside Mortgage Trends, bulk MSR transfers (one barometer of sales) increased 20.6 percent in the second quarter compared to the first with roughly $42.9 billion of Fannie Mae, Freddie Mac and Ginnie product changing hands. The third quarter is expected...
Latest Mortgage Data
- VA Originations Stayed Strong in 2Q16 as Volume Rose 30 Percent
- IO Originations Increase in 2Q, Led by PHH
- MBS & ABS Issuance at a Glance
- GSE MBS Issuance Up Again in August, Market Share Improved
- Bank Repurchases Bounce Higher in 2Q16
- CFPB Exams of Nonbank Mortgage Lenders Surge 220 Percent
- More Latest Data
The Department of Veterans Affairs is working on a change to its existing streamline refinancing policy to address a problem that is giving VA and Ginnie Mae the fits. Under the VA’s qualified-mortgage rule, a VA borrower must wait six months and show six months’ worth of mortgage payments before they can refinance into an IRRRL (Interest Rate Reduction Refinance Loan) and take advantage of the lower rate. However, it seems not all VA lenders are adhering to the rule and that a good number are refinancing veterans into IRRRLs even before the mandatory seasoning period ends for fear interest rates might rise and the borrower might not benefit from the lower rate. “I’ve redone the numbers in 20 different directions on how much a borrower would save if they had to wait two more months and the rate went up a quarter of a point because they lost those two months ...
JPMorgan Chase is set to end another lull in the issuance of jumbo mortgage-backed securities. The $395.40 million JPMorgan Mortgage Trust 2016-3 is scheduled to be issued next week, according to a presale report from Fitch Ratings. The most recently issued jumbo MBS priced in mid-August and was also from Chase. Only two firms with active conduits have issued jumbo MBS this year: Chase and Redwood Trust. Two Harbors Investment and WinWater Home Mortgage issued ...
Foreign investors, commercial banks and mutual funds all beefed up their holdings of agency MBS during the second quarter of 2016, according to a new Inside MBS & ABS analysis. The Federal Reserve remained the biggest investor in the agency MBS market with $1.744 trillion on its books at the end of June. That accounted for 29.7 percent of the $5.867 trillion of single-family agency MBS outstanding at that time, but it was down 0.5 percent from the end of March. The central bank’s MBS holdings vary slightly in the Fed’s weekly snapshots as pending transactions wait to clear, but its game plan is to hold its portfolio steady by reinvesting principal payments. The single-family agency MBS market grew...[Includes two data tables]
Industry trade groups have yet to weigh in on the CFPB’s TRID clarifying rulemaking, but the grassroots rank-and-file have, and many of them are raising more concerns and questions. For instance, Ross Miller, president of Miller Home Mortgage in Metairie, LA, complained that there are no exceptions for the three-day waiting period when there is an emergency. “I had a client whose father was quickly scheduled for open heart surgery,” he said in a comment letter. “The client was ...
With rising origination volume and solid gain-on-sale margins, the business of originating and selling home loans generated substantially more earnings during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of earnings reports. But the servicing side of the business had trouble generating positive income after taking into account gyrations in mortgage servicing rights valuations and the hedges lenders place on these assets ... [Includes one data chart]
Fannie Mae and Freddie Mac saw a solid 10.0 percent increase in production of single-family mortgage-backed securities in August, and there are signs that the GSEs are regaining some lost market share as well. The two GSEs issued $91.59 billion of single-family MBS last month, their highest monthly total since August 2013. Interestingly, most of the increase came from rising refinance activity. The flow of refi loans is up 14.0 percent at Fannie and 8.7 percent at Freddie, while purchase-mortgage business rose 9.9 percent and 6.3 percent, respectively, at the two firms. Two thirds of the way through 2016, GSE single-family business was still down slightly from the first eight months of last year.
Most Popular Stories
- A Significant Increase in Agency Jumbos for 2Q; GSE Loan Limit to Increase?
- Redwood CEO: JPMorgan Ahead of Everybody Else with Non-Agency MBS Packed with GSE-Eligible Loans
- Will the Wells Fargo Account Scandal Hit the Megabanks Mortgage Business? Correspondent Sellers Fear Reputational Risk
- Analyst: PHH Corp. Is Just too Cheap; But Will a Buyer Emerge?
- Ginnie Mae Keeping a Close Eye on Servicing Sales, Liquidity