April 16, 2015

Latest from Inside Mortgage Finance

The nonbank share of GSE business rose by 0.8 percentage points from the previous quarter according to estimates from Inside The GSEs

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GSEs Securitized Smaller Volume of Private MI-Insured Mortgages During Refinance-Heavy 1Q15

Fannie Mae and Freddie Mac securitized $43.28 billion of single-family loans covered by private mortgage insurance during the first quarter of 2015, according to a new Inside Mortgage Finance analysis and ranking. First-quarter PMI business was down 7.7 percent from the fourth quarter of 2014, although overall mortgage-backed securities issuance by the two government-sponsored enterprises was up 5.9 percent over the same period. All of the increase ... [Includes two data charts]


Mortgage Originations at Big Banks Increase in First Quarter of 2015, Positive Outlook for Margins

Originations of mortgages by big banks in the first quarter of 2015 were up strongly compared with a year ago as well as the fourth quarter of 2014. Competition has increased, but mortgage banking income and gain-on-sale margins were relatively strong, according to industry analysts. Five large banks that have reported earnings generated a combined $108.5 billion in mortgage originations during the first three months of 2015. That was up 9.4 percent from ...

House Passes Points-and-Fees Legislation With Solid Bipartisan Support, But Veto Looms

The House of Representatives early this week passed H.R. 685, the “Mortgage Choice Act,” bipartisan legislation which would clarify that certain affiliated title costs do not count against the “qualified mortgage” cap on points and fees under the ability-to-repay rule. H.R. 685, introduced by Rep. Bill Huizenga, R-MI, with 37 co-sponsors from both parties, excludes from the definition of points and fees all title charges, regardless of whether they are charged by ...

Feature Stories

Inside FHA/VA Lending

VA Servicing Sector is Growing, While FHA Market Shrinks

The outstanding supply of VA home loans in Ginnie Mae pools continued to grow during the first quarter of 2015, climbing 2.9 percent from the end of last year, according to a new Inside FHA/VA Lending analysis of loan-level mortgage-backed securities disclosures. Meanwhile, the supply of FHA loans in Ginnie pools fell 0.5 percent during the first quarter. Similarly, FHA loans in Ginnie MBS declined by 2.2 percent from the first quarter of 2014 while VA loans ... [Includes three data charts]

Inside Nonconforming Markets

Deal Agent for Jumbo MBS Gaining Traction, But Plenty of Other Hurdles

Use of a deal agent in new non-agency mortgage-backed securities will help convince large investors to return to the market, according to industry participants. The benchmark non-agency MBS in the works with help from the Treasury Department will include a deal agent, according to Michael Stegman, counselor to the Treasury on housing finance policy. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Stegman noted that Treasury continues to ...

Inside MBS & ABS

Jumbo MBS Issuance Reached Post-Crisis High In Early 2015, Overall Non-Agency Market Firm

Overall non-agency MBS issuance dipped slightly in the first quarter of 2015, but the jumbo mortgage sector hit its biggest production volume since the financial crisis in late 2008, according to a new Inside MBS & ABS analysis and ranking. A total of $21.94 billion of non-agency MBS were issued during the first three months of this year, down 0.2 percent from the fourth quarter. The lion’s share of these deals were backed by seasoned loans, either ... [Includes two data charts]

Inside The GSEs

Heavy Refinance Volume Buoys GSE MBS Business in 1Q15

Fannie Mae and Freddie Mac issued a robust $189.92 billion of single-family mortgage-backed securities during the first three months of 2015, according to a new Inside The GSEs analysis.Business in the GSEs’ core MBS guaranty program grew 5.9 percent from the fourth quarter of last year. The pace in early 2015 was up a hefty 47.0 percent from the same period last year, which was the weakest quarter in over a decade. Nonbank seller/servicers continued to gain market share. These companies accounted for 45.6 percent of GSE MBS issued in early 2015, and their total production was up 7.7 percent from the previous quarter. (Includes 2 exclusive charts).

Inside Mortgage Trends

Mortgage Brokers, Refinance Lending Spur Surge in 1Q15 GSE Production

Mortgage brokers played an increasingly important role in the conventional conforming market during the first quarter of 2015, according to a new Inside Mortgage Trends analysis of mortgage-backed securities issued by Fannie Mae and Freddie Mac. Mortgage brokers were responsible for $23.8 billion of single-family mortgages securitized by the two government-sponsored enterprises during the first three months of this year. That was up 16.0 percent ... [Includes two data charts]

Inside the CFPB

‘Sweeping’ Payday Rules Could Drive Many Lenders From Market

The CFPB recently revealed details about proposals it is considering to stop what it characterized as payday “debt traps,” targeting payday loans, deposit advance products, vehicle title loans, and certain high-cost installment and open-end products – a scope of rulemaking so comprehensive it threatens to push a number of lenders out of the small-dollar lending market entirely. “[T]he contemplated rules are sweeping. We believe that, if they are adopted, the rules will lead to many lenders exiting the business of making covered loans and radically contract consumer access to covered loans,” Jeremy Rosenblum, a partner in the Philadelphia office of the Ballard Spahr law firm, said in a recent client note. The proposals under consideration cover both short-term and longer-term credit ...


The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

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