December 5, 2013
Latest from Inside Mortgage Finance
Total conventional/conforming mortgage originations fell by 24.5% from the previous quarter according to estimates from Inside Mortgage Finance
The lift in jumbo mortgage production during the third quarter of 2013 came from the non-agency segment of the market, while new originations of conforming jumbo loans faltered, according to a new analysis and ranking by Inside Mortgage Finance. Fannie Mae, Freddie Mac and the FHA financed $25.48 billion in single-family loans that exceeded $417,000 during the third quarter, down 15.5 percent from the second quarter. Meanwhile, non-agency jumbo originations edged up 2.7 percent during the third quarter, hitting a six-year high. The strength of the non-agency jumbo market at a time when securitization of these loans has slowed...[Includes three data charts]
Originations of non-agency jumbo mortgages are stronger than the overall market, big banks are competing for wealthy borrowers and smaller firms are looking to enter the market. While jumbos originated in recent years have performed exceptionally well, Standard & Poors stresses that lenders should control their growth. In our opinion, controlled growth is a key aspect to the comprehensiveness and ultimate success of an originators business strategy, the rating service said in a recent overview of jumbo performance and best practices. We believe that aggressive growth strategies could result in difficulties managing the quality of the origination process. S&P noted...
The mortgage insurance industry is anxiously awaiting new risk-to-capital rules from the Federal Housing Finance Agency, hoping that the regulator will go easy on an industry that is beginning to recover from a years-long debacle and reclaim market share from the FHA. Private MI executives close to the matter told Inside Mortgage Finance that the FHFA will likely issue a minimum risk-to-capital ratio of 18:1, a tougher standard than the current 25:1, but there is also talk of a phase-in period and bifurcation for legacy versus new companies. According to its securities filings, National MI, a new MI, has agreed...
Latest Mortgage Data
- Data: GSE Purchase-Mortgage Business by State: 9M2013
- GSE MBS Business Activity Drops Monthly, Year-to-Date In November
- MBS & ABS Issuance at a Glance
- Ginnie Servicing Volume and FHA Delinquencies Fall
- Jumbo Lending Outpaces Overall Market in Third Quarter, Led by Bank Portfolios
- Consumer Complaints About Mortgages Noticeably Drop in 3Q13
- More Latest Data
Mortgage banking income fell sharply in the third quarter and the compliance outlook remained murky, but banks reported a huge improvement in loan buybacks, according to a new Inside Mortgage Trends analysis of call-report data. Banks and thrifts repurchased or provided other indemnification totaling $1.998 billion during the third quarter, the lowest quarterly amount for the industry in five years. Banks first began reporting repurchase data in their call reports ... [Includes one data chart]
It is no longer a question of if the Federal Housing Finance Agency will have a new head but rather how soon. When that occurs, the question will shift to whats next, say industry observers. Following its return from Thanksgiving recess, the U.S. Senate could move as early as next Tuesday to vote to confirm Rep. Mel Watt, D-NC, President Obamas pick to run the FHFA. The nominations of Watt and Janet Yellen to head the FHFA and the Federal Reserve, respectively, are tethered on the Senates agenda by design.
Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $82.33 billion in new single-family MBS during November, according to a new Inside MBS & ABS ranking and analysis. New MBS issuance by the three agencies was off 12.0 percent from October, continuing a steady downturn thats been under way since April 2013. Production last month was off a whopping 58.7 percent from November 2012, when Fannie and Freddie volume spurted higher as issuers maneuvered to avoid a pending increase in MBS guaranty fees charged by the two government-sponsored enterprises. Tumbling refinance activity was...[Includes two data charts]
The CFPB has gone ahead and issued the last big piece to the mortgage finance puzzle it was mandated to manufacture by the Dodd-Frank Act, the integrated mortgage-disclosure rule under the Real Estate Settlement Procedures Act and the Truth in Lending Act and related forms. The good news for the mortgage finance industry apart from the 20-month implementation period is that the new rule and forms, part of the bureaus know before you owe initiative, are not nearly as transformational towards the fundamental nature of the...
Originations of non-agency jumbo mortgages in the third quarter increased by 2.7 percent compared with the second quarter of 2013 while total originations fell by 18.6 percent, according to a new ranking by affiliated publication Inside Mortgage Finance. An estimated $77.0 billion in non-agency jumbos were originated in the third quarter, a level of originations not seen since the second quarter of 2007. The jumbo market accounted for 16.7 percent of total mortgage ... [Includes one data chart]
The Department of Housing and Urban Development has issued guidance clarifying FHA lenders obligation to report voluntarily instances of fraud, misrepresentation and any other material findings in connection with the origination, underwriting and servicing of FHA-insured loans. Compliance experts say the guidance in Mortgagee Letter 2013-41 is a shot across the industrys bow a reminder to lenders about existing FHA policy requiring them to self-report fraud and misrepresentation to the FHA. Upon notification, the FHA works with the lender on any potential mitigation actions. In the inaugural issue of Lender Insight in June, the FHA reported ...
- GSE Seller Profile: 3Q13
- GSE Repurchase Activity First Half 2013
- Top Mortgage Players: 2Q13
- Mortgage Profitability Report: 2Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
With loan volumes falling, particularly refinancings, where do you see originations coming in at in 2014?
- $1.4 trillion to $1.6 trillion
- $1.2 trillion to $1.39 trillion
- $1 trillion to $1.19 trillion
- Beam me up, Scotty
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