GSE Seller Profile: 4Q16
Lenders sold $90.96 billion of correspondent-originated loans to the two government-sponsored enterprises, an 11.6 percent increase over the third quarter. The volume of retail originations rose 3.6 percent in the fourth quarter; wholesale-broker loans fell 0.2 percent.
Overall, GSE single-family business was up 5.7 percent from the third quarter.
But how individual seller/servicers make use of the channels? Inside Mortgage Finance's GSE Seller Profile examines the sales at every institution that sold to Fannie or Freddie in 4Q16, from #1 Wells Fargo to #2313 Frontline Mortgage. 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 2,313 sellers to the GSEs in the fourth quarter of 2016 and reports on their activity. You’ll find:
- Ranking of the 2,313 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 fourth quarter 2016 report, you'd learn:
Fast-growing agency MBS servicer Lakeview Loan Servicing, #71 in volume sold to the GSEs in 4Q16, sold $514.7 million in loans. Of these, $103.9 million came through the retail channel, $383.1 million from correspondents, and $27.7 million from brokers. Forty percent ($207.2 million) were for home purchase.
Get these details, plus underwriting characteristics, for 2,312 other sellers.
Three Rivers Credit Union (#701) sold $15.6 million in loans to the GSEs, 62.4 percent of which ($9.7 million) were purchase loans. U.S. Credit Union (#716) had similar sales ($15.2 million), but most of its sales ($9.9 million) were refinance mortgages. At $362,719, USCU’s loans were, on average, more than twice the size of Three Rivers’ loans ($164,310).
Compare and contrast more than 2,300 sellers, every institution that sold a loan to either Fannie or Freddie during the quarter.
At Georgetown Mortgage (#1073), purchase loans sourced through the retail channel had an average FICO score 23 points higher than similarly generated refinance loans. While debt-to-income and loan-to-value ratios were both, characteristically, lower on the purchase loans, the purchase loans had an average loan size that was 30 percent higher than the refi average.
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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