July 2, 2015
Latest from Inside Mortgage Finance
Bank and thrift holdings of non-agency residential MBS fell by 11.0 percentage points from the previous quarter according to estimates from Inside Nonconforming Markets
Fannie Mae and Freddie Mac saw a robust 22.3 percent increase in their single-family business during the second quarter of 2015, according to a new Inside Mortgage Finance ranking and analysis. The two government-sponsored enterprises issued a combined $232.36 billion of single-family mortgage-backed securities during the second quarter. It was their strongest quarterly production level since the third quarter of 2013, and it lifted ... [Includes three data charts]
Private mortgage insurers will have to hold more capital for lender-paid mortgage insurance, but the changes will only apply to business written after Jan. 1, 2016. Fannie Mae and Freddie Mac this week announced that lender-paid MI coverage will be subject to a 1.10 “multiplier” for mortgages with loan-to-value ratios above 90 percent. Mortgages with LTV ratios of 90 percent or less will be subject to a 1.35 percent multiplier. The government-sponsored enterprises ...
Late last week, the Supreme Court of the United States delivered some long-sought clarity on the legitimacy of disparate-impact claims brought under the Fair Housing Act in the case of Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. The highest court in the land validated the position of various lower courts, regulatory agencies and administrations over the last four decades that disparate impact is ...
Latest Mortgage Data
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- Bank Holdings of Non-Agency MBS Dwindle
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- FHLB Member Advances Increase for Third Consecutive Year
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- More Latest Data
Nonbank seller-servicers continued to claim a larger share of Fannie Mae and Freddie Mac business during the booming second quarter of 2015, according to a new Inside The GSEs analysis. The two GSEs securitized $232.4 billion of single-family mortgages during the second quarter, up 22.3 percent from the first three months of the year. Freddie posted a bigger gain, 28.5 percent, than did Fannie (up 18.0 percent). Nonbank sellers accounted for 46.5 percent of loans securitized by the GSEs during the second quarter. They delivered $107.9 billion to Fannie and Freddie mortgage-backed securities during the period, up 24.7 percent from the first quarter. Among nonbank sellers, the biggest gain was posted by smaller and mid-sized mortgage companies, which accounted for 27.6 percent of GSE second-quarter business.
Residential MBS production continued to gain speed in the second quarter of 2015 while non-mortgage securitization remained strong, according to a new Inside MBS & ABS analysis. A total of $419.42 billion of single-family MBS and non-mortgage ABS were issued during the second quarter, an increase of 21.2 percent from the first three months of the year. It was the strongest new issuance total since the third quarter of 2013 and marked the fifth straight quarterly increase since the market hit a cyclical low at the beginning of last year. Most of the gain came from the agency MBS sector, which totaled $352.73 billion in new issuance, a gain of 29.7 percent from the first quarter. All three agencies posted hefty gains, with the biggest coming at Ginnie Mae, where new issuance jumped 46.7 percent to hit $120.36 billion. A lot of Ginnie’s growth is coming from an unusual surge of refinance activity, which accounted for ... [ charts]
The U.S. Supreme Court last week validated the disparate-impact legal theory as it relates to housing discrimination in the case of Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. And while the immediate effect of the ruling has more to do with the Department of Housing and Urban Development’s enforcement of the Fair Housing Act’s restrictions on disparate impact, there are definitely implications for the CFPB’s enforcement of the Equal Credit Opportunity Act’s prohibitions against disparate impact. The crux of this case was whether disparate-impact claims are cognizable under the Fair Housing Act of 1968, where a plaintiff alleges discrimination based on the disparate impact that a defendant’s “facially neutral” practice has upon members of ...
Mortgage industry groups say a proposal from the Conference of State Bank Supervisors to establish capital requirements and other standards for nonbank servicers is unnecessary for an industry that’s already heavily regulated. State regulators proposed the standards in March due to concerns about exceptional growth in recent years by Ocwen Financial, Nationstar Mortgage and other nonbanks ...
Ginnie Mae securitized $6.6 billion of VA jumbo loans in the first three months of 2015, up 15.9 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Jumbo loans – single-family mortgages with loan amounts exceeding $417,000 – comprised 18.7 percent of total VA originations in the first quarter. VA jumbo originations outpaced FHA jumbo production, which totaled $2.8 billion in the first quarter, up 17.0 percent from the prior quarter, according to the Inside Mortgage Finance database. VA jumbos in Ginnie mortgage-backed securities issued in the first quarter included modified VA loans as well as those originated in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Wells Fargo ranked first among securitizers of VA jumbos in the first quarter, with $1.3 billion in production. Second-ranked Freedom Mortgage conveyed $652.7 million in ... [ 1 chart ]
A relatively small – even microscopic – percentage of loans securitized by Fannie Mae and Freddie Mac in the past three years have been subject to a repurchase demand, according to a new Inside Mortgage Trends analysis. As of the end of March, lenders had repurchased a total of $2.01 billion of loans that were pooled into mortgage-backed securities by the two government-sponsored enterprises during 2012, 2013 and 2014. That was just ... [Includes two data charts]
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- GSE Seller Profile 1Q15
- GSE Private Mortgage Insurance Profile 1Q15
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