Latest News

Angel Oak Division Eyes $5B in Non-QM Originations for 2020
December 13, 2019
Tom Hutchens of Angel Oak: “We are getting deeper in our markets.”
Sterling Bank Suspends Non-QM Lending Program
December 13, 2019
The forms of documentation allowed through Sterling's Advantage Loan program are more vulnerable to manipulation and misrepresentation than traditional documentation programs, according to Fitch.
Securitization Rate Heads North in 3Q19
December 13, 2019
The boost in securitization came despite headwinds from market dynamics…
Feds Cautiously Approve Use of ‘Alt’ Data in Underwriting
December 13, 2019
The crux of the matter: “The agencies are aware that the use of certain alternative data may present no greater risks than data traditionally used in the credit evaluation process.”

Earnings
Banks' Mortgage Banking Income Rebounds in 3Q19
JPMorgan Chase and Wells Fargo, which account for over 40% of the industry mortgage banking income, reported sharply different results in their third quarter call reports. (Includes data chart.)
Buybacks
GSE Loan Defects Remain Nominal in Third Quarter
About 87% of buyback activity in the third quarter was related to loans sold to Fannie and Freddie in 2018 and the first half of 2019. (Includes data chart.)
Agency MBS
Agency MBS Production Grows Slightly in November
Rate-term refinances drove the modest increase in agency MBS issuance in November, especially at Fannie and Freddie. Ginnie production was down. (Includes two data charts.)
Originations
Refi Lending Catching Up to Purchase Market in 3Q19
The 47.3% share for refinance business was the highest since the fourth quarter of 2016. Retail remained the largest source of both purchase and refi business, but correspondent platforms saw the biggest improvement from the second quarter. (Includes four data charts.)
Government-Insured Originations
Retail Gains Ground on TPO Channels in Third Quarter
Correspondent production is still the leading source of government-insured loans, according to an exclusive survey, but retail gained ground in the third quarter. Wholesale-broker volume was up, but its market share contracted.
Expanded Credit
Expanded-Credit Lending Up in 3Q, Sector Loses Market Share
Originations of non-QMs and other expanded-credit products increased in the third quarter though not as quickly as total first-lien originations, which were boosted by refi business. (Includes data chart.)

Inside Mortgage Finance

Heavy Refinance Activity Slows HEL Market in 3Q19
Analysts say homeowners are sitting on $6.2 trillion of home equity that could be converted to cash. But for many, refinancing is a better choice than a HELOC. (Includes three data charts.)
Federal Regulators Studying Risks Posed by Nonbanks
The Financial Stability Oversight Council noted the risks posed by nonbank mortgage firms in its latest annual report. But are FSOC's concerns overblown? Trade groups weigh in, as does Treasury Secretary Mnuchin.
- Bulk MSR Sales Lacking. Blame Low Rates? Indeed
- Calabria Says He's Reduced GSE Risk. More to Come?
More Inside Mortgage Finance

Inside MBS & ABS

Mortgage Securitization Rate Gains Ground in 3Q19
December 12, 2019
Significant increases in securitization rates were recorded in the conventional-conforming, government-insured and nonprime markets. Relatively few jumbo loans are pooled in non-agency MBS. (Includes data chart.)
SFA Reduces Required TRID Due Diligence Testing
December 12, 2019
The Structured Finance Association issued new guidelines for testing loans in non-agency MBS for compliance with TRID. Requirements were reduced, with industry participants growing more comfortable with TRID liability.
DBRS Tops in Rating RMBS, S&P Leads in ABS Business
December 12, 2019
The merger with Morningstar could help DBRS expand its footprint in rating non-agency MBS but likely will have little effect on its share of the ABS market. (Includes two data charts.)
FHFA Prepayment Report Bodes Well for UMBS
December 12, 2019
The key factor for TBA investors is prepayment speeds. A quick scan of the FHFA data show that the conditional prepayment rates for UMBS issued by Fannie and those issued by Freddie have remained comparable since the launch of the single security in June.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Retail Share of Jumbo Originations Rises in 3Q19
December 6, 2019
The retail share of jumbo originations is up this year even with top-ranked Wells Fargo placing a greater emphasis on the correspondent channel. More than 80% of jumbos originated in the third quarter came through retail means. (Includes data chart.)
Jumbo MSR Portfolios on the Rise in 3Q19 (Mostly)
December 6, 2019
Among a group of 30 prominent servicers of jumbo mortgages, only three shrank their portfolios in the past year. Wells Fargo remained the top-ranked servicer as of September 30, though the bank lost some market share. (Includes data chart.)
Loan Limit Hike Could Have Big Impact in Some States
December 6, 2019
The GSEs' loan limits increased for 2020, like clockwork. The higher limits could take a large bite out of non-agency jumbo lending in some states, according to a new analysis.
GSE-Eligible Loans Fill Provident’s Non-Agency MBS
December 6, 2019
Provident Funding Associates is set to issue a non-agency MBS with mortgages eligible for sale to the GSEs. The types of loans in the deal differ from previous non-agency MBS packed with Fannie/Freddie-eligible mortgages.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Bank MSR Valuations Sink To a 3-Year Low in 3Q19
December 13, 2019
Most of the banking industry's decline in servicing for others was attributable to a $26 billion drop at Wells Fargo.
Mortgage Hiring was Strong in the Fall. As for 2020…
December 13, 2019
A new year is upon us and even though production should slow in 2020, several lenders have big-time hiring plans, including Angel Oak and UWM.
Lenders Report Big Gain in Production Income in 3Q19
December 13, 2019
The industry increased profits on the production side of the aisle by pushing a higher volume of business through their platforms, reducing per-loan costs for personnel, occupancy and technology. (Includes data chart.)
American Mortgage's Plan: You Work It, You Own It
December 13, 2019
A one-year-old mortgage startup in California decided to become fully owned by its employees. The concept is rare, but not necessarily new.

More Inside Mortgage Trends

Inside FHA/VA Lending

Ginnie MBS Production Stumbles in November
The 7% drop from October ended eight consecutive monthly gains in Ginnie MBS issuance. Rate-term refinance activity continued to climb last month, but not enough to offset declines in purchase-money and cash-out refi transactions.
Low Rates Fueled Strong FHA Demand in 3Q19
Borrower demand for FHA-insured loans was strong in the third quarter due to low interest rates. Not surprisingly, refinance activity, streamline refinancing in particular, provided the boost.
FHA Announces Loan Limit Increases for Forwards, HECMs
The 2020 loan limits show a 5.4% increase in most counties. However, 11 counties saw their loan limits decrease by double digits.
MBA Weighs In on Enforcement of VA Refi Requirements
MBA blamed ambiguous regulatory language and inaccurate staff guidance for a compliance mess involving thousands of VA refinance loans.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Bank MSR Valuations Sink To a 3-Year Low in 3Q19
Most of the banking industry's decline in servicing for others was attributable to a $26 billion drop at Wells Fargo.
Inside Mortgage Finance
Heavy Refinance Activity Slows HEL Market in 3Q19
Analysts say homeowners are sitting on $6.2 trillion of home equity that could be converted to cash. But for many, refinancing is a better choice than a HELOC. (Includes three data charts.)
Inside Nonconforming Markets
Retail Share of Jumbo Originations Rises in 3Q19
The retail share of jumbo originations is up this year even with top-ranked Wells Fargo placing a greater emphasis on the correspondent channel. More than 80% of jumbos originated in the third quarter came through retail means. (Includes data chart.)
Inside MBS & ABS
Mortgage Securitization Rate Gains Ground in 3Q19
Significant increases in securitization rates were recorded in the conventional-conforming, government-insured and nonprime markets. Relatively few jumbo loans are pooled in non-agency MBS. (Includes data chart.)
Inside the CFPB
Volume 30:24 December 2, 2019
Inside The GSEs
GSE 1-Family Business Up In November on Refi Surge
At $117.6 billion in November, combined GSE issuance of single-family MBS hit its highest monthly volume since January 2013. (Includes two data charts.)
Inside FHA/VA Lending
Ginnie MBS Production Stumbles in November
The 7% drop from October ended eight consecutive monthly gains in Ginnie MBS issuance. Rate-term refinance activity continued to climb last month, but not enough to offset declines in purchase-money and cash-out refi transactions.

Inside The GSEs

GSE 1-Family Business Up In November on Refi Surge
At $117.6 billion in November, combined GSE issuance of single-family MBS hit its highest monthly volume since January 2013. (Includes two data charts.)
GSE Shareholders Will Get Their Day in Court
A court ruling last week means plaintiffs can't seek compensation for their direct losses, but can pursue their lawsuits as shareholders representing Fannie Mae and Freddie Mac.
More Inside The GSEs

With rates staying low and refis at a decent clip, what are your hiring plans for the rest of 2019?