July 28, 2016
Latest from Inside Mortgage Finance
Total non-mortgage ABS issuance fell by 0.6 percent from the previous quarter according to estimates from Inside MBS & ABS
The mortgage-origination market roared to life during the second quarter of 2016 with an estimated $510 billion in new lending, according to an exclusive new Inside Mortgage Finance analysis and ranking. Nearly all lenders reported hefty increases in production – some 50 percent or more – compared to the first three months of the year. As a group, the top 25 lenders for the second quarter originated 31.7 percent more new loans than in the first three months of the year. The estimated $510 billion in originations during the most recent period was...[Includes two data tables]
Since Monday of this week, four mortgage-related merger deals have been unveiled, setting in motion what could turn out to be a long awaited mini-boom in activity. But can it last? So far, all of the transactions entail small- to medium-sized lenders, with most facilitated through “asset purchases” as opposed to stock sales. The one exception is the announcement by the publicly traded EverBank Financial that it’s currently engaged in takeover talks with what it called a “well-respected financial services company.” EverBank, which ranked 40th in originations for the first half of 2016 according to a tally by Inside Mortgage Finance, is...[Includes one data table]
Mortgage Lenders See Plenty of Demand for Originations, Having Trouble Determining Best Option for Servicing
The decline in interest rates after the Brexit vote in late June has boosted mortgage originations in recent weeks and caused problems for holders of mortgage servicing rights, according to industry participants at the California Mortgage Bankers Association’s Western Secondary Market Conference in San Francisco this week. Mike Duncan, a hedge manager at Compass Analytics, said 25 percent of his firm’s clients were over capacity at the end of May and 40 percent were over capacity by the end of June. He predicted that over-capacity rates could go even higher if interest rates stay low, increasing demand for refinances. Compass provides pricing, valuation and interest rate risk-management services. Rob Branthover, a managing director at Mortgage Industry Advisory Corp., added...
Latest Mortgage Data
- FHA Bursts over $1 Trillion in June As New Issuance Exceeds Runoff
- Most New ARM Originations Held in Portfolio
- Rated Non-Agency MBS Issued - 2Q16
- Nonbanks Continue Gaining Market Share in Servicing
- TPO Market Share Nudged Higher in 2Q16
- Mortgage Complaints Show Double-Digit Decline in 2Q16
- More Latest Data
Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]
Two Harbors Investment announced this week that it will discontinue its mortgage conduit and securitization operations. The real estate investment trust was the top issuer of jumbo mortgage-backed securities in the first half of 2016, with $628.8 million in volume, according to Inside Nonconforming Markets. Five Oaks Investment also announced that it will stop jumbo conduit activities on Aug. 1. Hatteras Financial, a third jumbo conduit related to a REIT, recently pulled ...
New issuance of non-agency commercial MBS fell dramatically during the second quarter of 2016, more than offsetting a modest uptick in the production of agency multifamily MBS, according to a new Inside MBS & ABS analysis. Non-agency CMBS issuance fell to just $12.87 billion in the second quarter, a 29.5 percent drop from the first three months of the year. It was the lowest quarterly output of new CMBS since the second quarter of 2012, when just $10.63 billion of new securities were issued and the market was still finding its legs after the financial meltdown. New CMBS issuance has been...[Includes one data table]
Non-agency mortgage-backed security issuers and investors were getting more comfortable in recent years with third-party due diligence reviews of less than 100 percent of the mortgages in an MBS due to the exceptionally strong performance of new originations. However, analysts at Morningstar Credit Ratings suggest that most non-agency MBS backed by new mortgages will be subject to full reviews due to uncertainty regarding the CFPB’s integrated-disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act, otherwise known as TRID. The reviews help identify and cure compliance issues and protect MBS investors from TRID-related losses. “Most post-crisis transactions carry out due diligence on every loan, and we...
The secondary market in mortgage servicing rights rebounded during the second quarter of 2016 after starting the year with a thud, according to an exclusive Inside Mortgage Trends analysis of mortgage-securities disclosures by Fannie Mae, Freddie Mac and Ginnie Mae. The three agencies saw a combined $42.95 billion of MSR change hands in bulk transactions during the second quarter. That was up 20.6 percent from the first quarter, when ... [Includes two data charts]
Large depository institutions continued to let their servicing portfolios of loans pooled in Fannie Mae and Freddie Mac mortgage-backed securities slowly decline in the second quarter of 2016. A new Inside The GSEs analysis shows that banks, thrifts and credit unions still accounted for the lion’s share of GSE MBS servicing at the end of June. Depositories serviced $2.778 trillion of Fannie and Freddie single-family loans tied to MBS, or 66.6 percent of the total market. But that was down 0.9 percent from the previous quarter during a period when the total servicing of GSE single-family MBS edged slightly higher. Nonbanks, however, .... [includes two charts]
Most Popular Stories
- What Were Hearing: Is the CFPB to Blame? / Or Maybe the Math Doesnt Work / If Only the C&I Market Would Return / NAR is Happy with TRID 2.0 / Subprime Lending Continues to Hum / Whats Wrong with a 7 Percent Mortgage?
- Commercial Mortgage Securitization Took a Tumble in 2Q16; Non-Agency Issuance Hits Four-Year Low
- Thanks to Plunging Interest Rates, Loan Production Hit a Three-Year High in 2Q16; Huge Gains at Some Shops
- Impac Posts Strong Profit Gain; Originations Increased 38 Percent in 2Q16
- Home Point Financial Inks Deal to Buy Emery Financials Assets