February 22, 2018

Latest from Inside Mortgage Finance

The top four participants are servicing 31.9% of the nation's mortgages, according to Inside Mortgage Finance.

See who the top 50 servicers at year-end 2017 were.

Refinance Bump Helped Boost Retail Share in Late 2017, While Competition Heats Up in Correspondent Market

Retail production shops and mortgage brokers managed to sustain origination volumes fairly well in the fourth quarter of 2017, but correspondent platforms had a tougher time of it, according to a new Inside Mortgage Finance ranking and analysis.

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FHFA Establishes ‘Minimum’ Return on Equity Goals For Fannie Mae and Freddie Mac, Sparking Speculation

Fannie Mae and Freddie Mac observers are scratching their heads about “minimum return on equity” requirements that the Federal Housing Finance Agency has imposed, somewhat mysteriously, on the two government-sponsored enterprises.

Burned by Borrower Fraud, Santander Sells Its Warehouse Business to Flagstar

Flagstar Bancorp agreed Tuesday to buy the mortgage warehouse loan portfolio from Santander Bank. The deal will make Flagstar the fourth largest warehouse loan provider by commitments.

Feature Stories

Inside MBS & ABS

Banks Retreated Further From Non-Mortgage ABS In Late 2017, But Kicked Some Tires in Auto Sector

The banking industry continued to show tepid interest in the non-mortgage ABS market as 2017 came to a close, according to a new Inside MBS & ABS ranking and analysis.

Inside Nonconforming Markets

Varied Trends Among Expanded-Credit Lenders, Volume Down Overall in 2017

A number of lenders are trying to grow the expanded-credit mortgage market, but top producers in the sector saw an overall decline in originations last year, according to a new ranking by Inside Nonconforming Markets. The 15 top lenders originated $40.96 billion of expanded-credit mortgages last year, down 16.3 percent from 2016. The ECM category consists mostly of non-qualified mortgages and nonprime/Alt A loans that aren’t eligible for sale to the agencies ... [Includes one data chart]

Inside the CFPB

Trump Budget Plan Envisions Major Restructuring of Consumer Bureau

The Trump administration has released a proposed fiscal year 2019 budget that envisions big changes for the CFPB. According to budget documents, the White House is proposing to restructure the bureau, limit its mandatory funding in 2019, and provide discretionary, congressional appropriations to fund the agency beginning in 2020. Many of the proposed changes would require revisions to the bureau’s charter by Congress that would likely face a difficult path to enactment ...

Inside The GSEs

GSEs Report $9B Earnings Loss Resulting from Tax Act

As predicted, per the Tax Cuts and Jobs Act, the GSEs’ fourth-quarter earnings took a big hit with Fannie Mae and Freddie Mac posting losses of $6.5 billion and $2.9 billion, respectively. This is a far cry from their combined net income of $7.7 billion in the third quarter. But this likely one-time event was prompted by the GSEs having to reduce the value of their deferred tax assets by $15.3 billion after the tax act became law in December 2017. As a result, Fannie will need a $3.7 billion draw from Treasury and Freddie will have to request a $312 million draw.

Inside Mortgage Trends

GSE Credit Trends Continued Easing In 2017, Not So Much in Fourth Quarter

The credit box in Fannie Mae and Freddie Mac lending continued to widen – at a glacial rate – during 2017, according to a new Inside Mortgage Trends analysis of mortgage-backed securities disclosure data. The easing trend seemed to lose momentum slightly in the fourth quarter, as more government-sponsored enterprise business landed in the middle-risk categories. For the full year, 12.13 percent of GSE purchase loans were in the highest-risk ... [Includes two data charts]

Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.

37%

11 to 30. We’re feeling slightly bullish.

15%

31 or more. We’re in expansion mode.

None. We’re staying right where we are, for now.

26%

We’re cutting back.

22%