July 23, 2015

Latest from Inside Mortgage Finance

Total first-lien mortgage originations rose by 23.6 percentage points from the previous quarter according to estimates from Inside Mortgage Finance

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Mortgage Production Volume Continued Gaining Strength in 2Q15; Heady Rally in FHA Lending

The mortgage market cranked up new originations significantly during the second quarter of 2015, lifting production to its highest level in nearly two years, according to a new analysis and ranking by Inside Mortgage Finance. Lenders produced an estimated $445 billion of first-lien single-family mortgages during the second quarter, an increase of 23.6 percent over the first three months of 2015. It marked the strongest origination volume since the second quarter of 2013, when the industry was in the middle of a refinance boom that generated over $2 trillion in new production over a 12-month period. The party this time around doesn’t look...[Includes two data tables]

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M&A Roundup: More MSR Deals Hit the Market; Sale Of RoundPoint Mortgage Uncertain; Deal or No Deal?

Several large servicing portfolios of $1 billion or more hit the market in the past few weeks, but dealmakers and investors continue to wonder about the largest prize of them all: RoundPoint Mortgage, Charlotte, NC, which owns roughly $52.18 billion of receivables and ranks among the top 25. Investment banking officials who claim to have knowledge of the RoundPoint situation maintain that its owner, The Tavistock Group, is hell-bent on selling the nonbank, but as far as coming to final terms with a buyer, any buyer, that’s a different matter. It’s...

A Sign of Looser Credit: Nonbanks Make Mortgages To Foreclosed Borrowers, Sell the Loans to Banks

A handful of nonbank lenders are stepping up to the plate, offering mortgages to borrowers who are just one day removed from a foreclosure or short sale. But there’s a catch: many of the lenders willing to extend such credit want at least 20 percent down. Also, as it turns out, the trend is being funded by commercial banks that are serving as the end investors in the product. Two banks – one in California and one in New York – were identified...

Feature Stories

Inside the CFPB

TRID Oct. 3 Effective Date Official, Industry Wants Easy Enforcement

The CFPB last week finalized its earlier proposal to extend to Oct. 3, 2015, the effective date for its controversial integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act: the so-called TRID. “The bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule,” the CFPB said in announcing the finalization. “The bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems.” Further, “A Saturday launch is also consistent with industry plans tied to the original effective date of Saturday, August 1.” The ...

Inside FHA/VA Lending

Ginnie VA MBS Outstanding Up, FHA-Backed MBS Servicing Down

Servicing of VA loans securitized by Ginnie Mae increased in the second quarter of 2015 even as servicing of FHA-backed mortgage securities fell over the same period, according to an analysis of Ginnie Mae data. Ginnie VA servicing outstanding, which totaled $332.4 billion, was up 2.8 percent in the second quarter from the previous quarter and up 9.0 percent year over year. Wells Fargo maintained its huge lead as the largest servicer of securitized VA loans with a total of $101.1 billion, down slightly from the prior quarter and from the same period a year ago. Ginnie data show Wells ending the quarter with a 30.4 percent share of VA servicing outstanding. USAA Federal Savings Bank lagged far behind Wells in second place with 6.1 percent of total VA servicing outstanding, and that was up 7.1 percent from the previous quarter. Third-ranked PennyMac Corp. increased its ... [ 2 charts ]

Inside Nonconforming Markets

Banks Continue to See Benefits of Holding Originations, Including Some Non-Jumbos

Banks with significant portfolio capacity continue to stock up on mortgages because they offer strong returns and can help efforts to cross-sell other products. While most of the mortgages being added to portfolios are jumbos, in some instances banks are retaining conventional mortgages. JPMorgan Chase reported that it added mortgages with a balance of $19.0 billion to its portfolio holdings during the second quarter of 2015. Marianne Lake, chief financial officer at the bank ...

Inside MBS & ABS

Commercial Mortgage Securitization Activity Nudged Higher by Strong Agency Multifamily MBS Issuance

A rebound in multifamily MBS issuance by Fannie Mae, Freddie Mac and Ginnie Mae pushed total securitization of commercial mortgages up slightly in the second quarter of 2015. A total of $53.96 billion of income-property mortgages were securitized in the second quarter, according to a new Inside MBS & ABS market analysis. That was up a scant 0.6 percent from the first quarter of 2015. All of the gain came...

Inside Mortgage Trends

Small Banks Quietly Building Share In the Residential Mortgage Industry

Big banks have attracted considerable attention as they have reduced their footprint in the mortgage market. Although nonbank lenders and servicers have taken up most of the slack, a new Inside Mortgage Trends analysis reveals that small banks have been taking a bigger role in the industry. Commercial banks and thrifts have been building their holdings of unsecuritized home loans at a time when the overall supply of mortgage debt has been ... [Includes one data chart]

Inside The GSEs

Housing Reform Talks: Finance Should Not Be Political

Housing finance and housing policy should be clearly separated, said Rep. Randy Neugebauer, R-TX, speaking on a Bipartisan Policy Center GSE reform panel with Rep. John Delaney, D-MD, in Washington, DC, on July 16. “We should detach the financial piece away from the political process,” he said, adding that the market should determine how many houses and apartments to build, not the government. Neugebauer and Delaney agreed that reform needs to happen and that today’s housing finance system is largely controlled by the federal government. “The government’s role is to provide liquidity to the market and be more predicable like the banking system, which I’m a big supporter of,” said Delaney. “Then there’s the role of pricing risks, which I’m not a supporter of. The government has its roles mixed up.”

Poll

A lot has been written about the ‘Millennial Generation’ being key to the future of the housing/mortgage market, but how much of your mortgage workforce includes Millennials – those born roughly between the years 1980 to 1999?

Less than 10 percent
11 to 30 percent
Greater than 30 percent
It’s so small we can’t even measure it.
We’re tired of reading about how important Millennials are…

vote to see results
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