Browse articles from all of our Newsletters related to FRB.

October 21, 2016 - Inside MBS & ABS

MBS Trading Volume Hit a Yearly High in September. Prepays Ebb as Investors Ponder Next Fed Rate Hike

The average daily trading volume of agency MBS hit $223.2 billion in September, the strongest reading of the year and a sign that liquidity in the market has improved. According to figures compiled by the Securities Industry and Financial Markets Association, daily trading volume increased by 17.7 percent compared to the same month a year ago. But the year-to-date averages are much closer: $206.6 billion for 2016 compared to $199.9 billion last year. In the agency space there is...

October 20, 2016 - Inside Mortgage Finance

Industry Groups Urge CFPB to Extend the Diagnostic Approach to TRID Enforcement

A number of mortgage trade groups this week called upon the Consumer Financial Protection Bureau to extend its current “diagnostic” approach to enforcing the agency’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule. The groups were responding to the CFPB’s request for public comments on its proposed TRID clarifying rulemaking, which was issued at the end of July. It’s...

October 6, 2016 - Inside Mortgage Finance

HMDA Report Shows Huge Jump in Refi Business in 2015, Growing Government Role in Purchase Market

Home Mortgage Disclosure Act data released last week show a somewhat more efficient mortgage market in 2015 as fewer loan applications were declined and more turned into originated loans. Lenders processed $2.576 trillion in mortgage applications filed in 2015, converting them into $1.651 trillion in purchase and refinance originations, a 32.9 percent increase from the previous year. Some 56.5 percent of loan apps turned into closed loans, up from 53.8 percent in 2014, and the overall denial rate fell 2.9 points to 20.1 percent. Most of last year’s origination surge came...[Includes one data table]

October 3, 2016 - Inside the CFPB

Community Bank Mortgage Lending Is Up, But May Recede: Fed/CSBS

Mortgage lending at community banks rose last year and is up over the last few years, according to a joint survey by the Federal Reserve and the Conference of State Bank Supervisors. However, that trend may not hold, thanks in part to a drop in demand and to a departure from the sector because of the CFPB’s mortgage rules. “Mortgage lending grew by more than 6 percent for community banks in our survey, which was somewhat higher than the comparable growth rate for all community banks over an overlapping period,” the agencies said. It was also higher than the comparable rate across the entire industry. Over a more-extended period, from December 2013 to March 2016, growth in 1-4 family residential ...

September 23, 2016 - Inside MBS & ABS

Shades of 2015 as FOMC Maintains Status Quo, Consensus is a December Raise, Same as Last Year

As the third quarter draws to a close without a single increase in interest rates from the Federal Reserve, 2016 is increasingly looking like 2015, when the Fed said it would raise rates multiple times sometime during the year, only to wait until its very last meeting before finally raising them. Similarly, the U.S. central bank said it would raise rates four times in 2016, and so far, it has yet to raise rates once this year. This week, Fed Chair Janet Yellen explicitly stated she expects a rate increase this year, as do a majority of voting members of the Fed’s Open Market Committee. However, since they decided to take a pass this time around, the Fed only has...

September 22, 2016 - Inside Mortgage Finance

Servicing Business Continued Shifting Toward Nonbanks In 2Q16, and It’s Becoming Somewhat Less Top-Heavy

Nonbank loan administrators expanded their share of the mortgage servicing market during the second quarter, mostly capturing agency business abandoned by large banks, according to a new ranking and analysis by Inside Mortgage Finance. Commercial banks, savings institutions and credit unions reported a combined single-family servicing portfolio of $6.930 trillion as of the end of June, according to call reports. That was down 0.5 percent from the previous quarter despite the fact that the total depository portfolio holdings of unsecuritized mortgages increased 1.7 percent during that period. But bank, thrift and credit union loan servicing for others – typically loans held in mortgage-backed securities trusts – fell...[Includes two data tables]

September 16, 2016 - Inside MBS & ABS

Daily MBS Trading Volume Weakens in August. Is The Huge Bond Price Correction Finally Upon Us?

The average daily trading volume in agency MBS fell to $195.0 billion in August, the second weakest reading of the year, according to figures compiled by the Securities Industry and Financial Markets Association. The peak came the month before at $219.3 billion, and the low was back in March at $189.4 billion, not too far from the August volume. It’s...


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.


2 to 3 years. GSE reform is complicated.


Sadly it won’t happen in a Clinton or Trump first term.


Not in my lifetime.


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