May 16, 2013
Latest from Inside Mortgage Finance
Total primary mortgage insurance fell by 2.5% from the previous quarter according to estimates from Inside Mortgage Finance
Retail Held Steady in First-Quarter Origination Slump As Mortgage Lenders Cut Back on Wholesale Production
All three pistons in the mortgage origination engine slowed down during the first quarter of 2013, but retail production came closest to keeping the pace in a declining market, according to a new analysis and ranking by Inside Mortgage Finance. Lenders produced an estimated $310.0 billion in originations through retail offices, bank branches, call centers and online activities during the first three months of 2013. That was down 0.9 percent from the previous quarter, but because overall production slipped 4.8 percent, the retail share of the market surged to a record 62.0 percent. The wholesale channel both correspondent and broker accounted...[Includes four data charts]
Landmark BofA Settlement With Fannie Erases Vast Swath Of Industry Buybacks, But GSEs Keep Coming for More
Fannie Mae and Bank of America resolved a huge portion of the whopping $19.04 billion in disputed buyback requests facing the mortgage industry at the beginning of 2013, but both government-sponsored enterprises will remain aggressive in hunting for repurchase opportunities. In fact, new repurchase requests increased by a whopping 87.8 percent in the first three months of this year compared to the fourth quarter of 2012, reaching a record $12.14 billion, according to an analysis of GSE quarterly reports by Inside Mortgage Finance. The biggest increase was at Fannie Mae, where new buyback requests soared to $9.91 billion, while Freddie Mac reported a more modest 5.2 percent increase. The jump in new buyback demands occurred...[Includes one data chart]
More Fannie Mae mortgage business is ending up in multi-issuer pools as more lenders turn to direct sales to the government-sponsored enterprise, and experts say the company has been able to turn the trend to its advantage in the securities market. According to a new loan-level analysis of single-family mortgage-backed securities by Inside Mortgage Finance, some 39.1 percent of Fannies MBS production in the first quarter of 2013 was in multi-issuer pools. That compared to 30.0 percent, by dollar volume, of the GSEs MBS issuance back in the first quarter of last year. Single-seller pools, generated mostly by the giants of the mortgage lending industry, continue...
Latest Mortgage Data
SunTrust Mortgage is in settlement discussions with the Department of Housing and Urban Development and the Department of Justice over alleged violation of the False Claims Act in connection with the banks origination of FHA loans. The Atlanta-based mortgage lender disclosed the ongoing talks in a recent regulatory filing after being notified by the agencies of the results of their preliminary investigation during the first quarter of 2013. Even with the ongoing settlement talks, SunTrust continued to deny any wrongdoing, making clear its disagreement with the governments analysis and methodology. It gave no further ...
Boosted by acquisitions from Homeward Residential and Residential Capital, Ocwen Financial handled a whopping 33.7 percent share of the subprime mortgages outstanding at the end of the first quarter of 2013, according to a new ranking by Inside Nonconforming Markets. Three major special servicers are in negotiations to acquire more than $300 billion in unpaid principal balance of mortgage servicing each in the next year. While the servicers have broadened their focus to include ... [Includes one data chart]
While non-agency MBS participants largely oppose a credit rating assignment system proposed by Sen. Al Franken, D-MN, some of the main players in the market endorse a model based on ratings rotation. At a roundtable hosted by the Securities and Exchange Commission this week, Martin Hughes, CEO of Redwood Trust, said issuer-paid rating conflicts could be reduced by requiring non-agency MBS issuers to alternate rating services so that one firm didnt rate more than two consecutive deals from the issuer. He noted that Redwood has established a self-imposed rotation between Moodys Investors Service and Standard & Poors on its non-agency MBS issuance. The requirement to frequently alternate among the nationally recognized...
Fannie Mae hit an earnings home run in the first quarter while revealing that it has released $50.6 billion in deferred tax assets, an allowance that sets up a massive cash payment to the U.S. Treasury by the end of June. Fannie estimates that based on a net worth of $62.4 billion at March 31, it will have a dividend obligation to Treasury of $59.4 billion, a cash payment that appears all but certain. Following an edict from Treasury last summer, the GSEs cannot build retained earnings and can only maintain a small buffer of net worth. The rest of their earnings must be given to Treasury, which controls their preferred stock.
A jump in production income during the first quarter spurred a sharp increase in profitability that more than made up for a downturn in servicing earnings for a group of 10 lenders, according to a new Inside Mortgage Trends analysis of earnings reports. The 10 companies, which accounted for nearly half of the mortgages originated in the first three months of 2013 and over 60 percent of capitalized servicing rights, reported a hefty $4.29 billion in production-related income ... [Includes one data chart]
The CFPB has ratcheted up its scrutiny of the domestic auto finance industry, subpoenaing a number of U.S. auto lenders over the sale of extended warranties and other financial products, according to a report in the May 3 edition of the Wall Street Journal. Bureau officials said they would not comment on or confirm any potential subpoenas or requests for information. The CFPB interacts with the car-buying public and auto lenders in a variety of different ways. These can include educating consumers, examining and possibly...
- GSE Private Mortgage Insurance Profile
- Mortgage Profitability Report
- GSE Seller Profile: 1Q13
- GSE Repurchase Activity Full Year 2012
- Top Mortgage Players
- 2013 Mortgage Market Statistical Annual
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