GSE Seller Profile: 2Q16
Sales to Fannie Mae and Freddie Mac picked up in 2Q16, increasing 26.2 percent over the previous quarter’s volume. The gain came from both purchase mortgages (also up 26.2 percent) and refinances (+31.1 percent). But refi deliveries fell compared to 6M15 (-19.6 percent), leaving 2Q16 behind its year-ago predecessor.
The second quarter was generally not a good period for the megabanks, with Wells Fargo the only one of the four to increase volume over 1Q16. Nonbanks as a group registered more sales as did banks with less than $10 billion in assets and credit unions.
But how did the quarter play out at individual seller/servicers? Inside Mortgage Finance's GSE Seller Profile examines the effects at every institution that sold to Fannie or Freddie in 2Q16, from #1 Wells Fargo to #1849 Central Fidelity National Bank. You'll have detailed information on where each seller is sourcing its loans—retail, correspondent or broker. You'll have particulars on the loan demographics—FICO score, loan-to-value, debt-to-income and loan size averages. You'll also see how the sales break down by product type—refinance or purchase. Dig deeper into the channel-specific data to get even more narrowly focused information on loan demographics and product type.
The particulars allow you to compare and contrast your results, as well as your products and processes, with the rest of the market to root out refinements and new approaches that will improve your own results.
The current report looks at the 1,758 sellers to the GSEs in the second quarter of 2016 and reports on their activity. You’ll find:
- Ranking of the 1,849 sellers by volume with detail on their market share, volume by channel, volume by loan purpose and average loan characteristics.
- An alphabetical listing with rank, total volume and market share and detail on each seller’s volume by channel, volume by loan purpose and average loan characteristics.
- Separate rankings of GSE sellers by channel with channel volume and market share. These rankings provide separate detail on average credit score, DTI, LTV and loan size for refinance and purchase loans.
- Average coupon for the Top 100 sellers for each month in the quarter. You’ll find coupon rate for all loans as well as for each purpose and each channel.
The data in the GSE Seller Profile are derived by IMF’s research team from Fannie Mae and Freddie Mac loan-level mortgage securities disclosures.
From the second quarter 2016 report, you'd learn:
Huntington National Bank, #59 in volume sold to the GSEs in 2Q16, sold $554 million in loans. Of these, $363 million came through the retail channel, $156 million from correspondents, and $35 million from brokers. Fifty eight percent ($324 million) were for home purchase.
Get these details, plus underwriting characteristics, for 1,848 other sellers.
Bethpage Federal Credit Union (#181) sold $134 million in loans to the GSEs, sourcing nearly all (99.9 percent) from retail. More than half (58 percent) were refinances. Andrews FCU (#198) took a different approach for its $114 million in sales, which originated exclusively with correspondents. Most (59 percent) were purchase loans. Underwriting was stronger for Bethpage’s loans, with average FICO of 755, loan-to-value of 68 percent and debt-to-income of 34 percent. At Andrews, credit score was 735, LTV was 76 percent and DTI was 35 percent.
Compare and contrast nearly 1,850 sellers, every institution that sold a loan to either Fannie or Freddie during the quarter.
At Illini Bank, refi loans sourced through the correspondent channel had an average FICO score 28 points higher than the correspondent-generated purchase loans. Average loan-to-value ratio was more than 13 percent lower, and average loan size was 50 percent greater on the refis.
Dive into underwriting characteristics channel by channel.
Find out who’s doing what to score more business. For example:
- Who is making use of correspondents and brokers, and what type of business are those channels bringing in;
- Who is lending to low FICO customers and what do the other loan demographics look like;
- Who is doing a lot of purchase-money business and what kind of loans are they making;
- Where is the business getting done—where do opportunities lie;
- By lender, what are the average FICO, DTI, LTV, size, refi share, and channel breakdowns;
- Whose business would match up well with yours to create a successful partnership.
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