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Investment Properties Dominate 4Q EC MBS Issuance
January 30, 2023
Bottom line: Investment-property loans were a bright spot, accounting for nearly 60% of expanded-credit MBS...
As Rates Rise, VA's Streamlined Refi Program Slides Into Irrelevance
January 30, 2023
Only 23 lenders completed IRRRL endorsements in the final three months of 2022.
Reduced Opportunities in Ginnie EBOs
January 30, 2023
Aided by cheap money and ultra-low mortgage rates, Ginnie EBOs could pad quarterly earnings...
A New Permanent CEO for Nation's Largest Subservicer
January 30, 2023
Daras worked for Cenlar from 1985 to 1990 before departing as CFO to join Dime Bancorp.

Ginnie Mae Issuance
PennyMac Leads Ginnie Issuers as Bottom Falls Out
PennyMac led all categories in Ginnie Mae issuance as the downward trend continued in the sector, which produced its most disappointing results in three years. (Includes five data charts.)
Expanded Credit
Non-Agency MBS Issuance Fizzles in Fourth Quarter
Expanded-credit MBS issuance declined by nearly 50% in the fourth quarter compared with the previous quarter. Prime MBS issuance fared even worse, essentially freezing during the final months of the year. (Includes data chart.)
ABS
ABS Issuance Thumped in 4Q22 but Rebound Ahead
The key vehicle ABS sector took a big hit in the fourth quarter but still accounted for over 40% of total ABS issuance last year. Analysts say market fundamentals are moving in the right direction. (Includes two data charts.)
Mortgage Insurance
PMI Volume Hammered in 4Q22 as FHA Gained Share
Average loan sizes generally declined in the agency market last year. But rising mortgage rates pushed agency DTI ratios higher as the year went on. (Includes three data charts.)
Sales
GSE Purchases Continue to Plummet in Fourth Quarter
Only two major mortgage lenders — PennyMac and CitiMortgage — managed to deliver more loans to Fannie Mae and Freddie Mac in the fourth quarter than in the third. (Includes two data charts.)
Characteristics
Lenders Maintain Standards Despite Falling Volume
Underwriting standards tend to deteriorate in dire circumstances, but GSE sellers appeared to avoid taking excessive risk as 2022 wound down even as sales volumes plummeted. (Includes two data charts.)

Inside Mortgage Finance

Mortgage Lending Still in Collapse Mode at 2022 Finish Line
Primary-market originations of first-lien home loans fell to $335 billion in the final three months of last year — the lowest output since the second quarter of 2014. All major lenders saw volume decline. (Includes two data charts.)
Good Times for MSR Holders Could be Coming to an End
Bids for MSRs are declining, prompting worries among some sellers. Those holding servicing also face the possibility of an increase in delinquencies and advancing responsibilities.
- The MSR ‘Markup’ Gravy Train Is Over. Now What?
- Lenders Looking Forward to Better Times This Year
More Inside Mortgage Finance

Inside MBS & ABS

CLO Market Ends 2022 with Modest Decline in Issuance
January 26, 2023
Despite a surge in middle-market CLO issuance in the fourth quarter, total production of structured credit deals drifted lower in late 2022. Blackstone was the most active sponsor, while JPMorgan led in CLO underwriting. (Includes two data charts.)
FHFA Slashes Commingling Fee; Will It Be Enough?
January 26, 2023
Even though the upfront fee Fannie and Freddie impose on commingled securities has been sharply reduced, some industry watchers argue that it has permanently damaged the market for Supers and REMICs.
SEC Proposes ABS Conflict of Interest Rule
January 26, 2023
The proposed rule is meant to prohibit ABS issuers from engaging in “conflicted transactions” that could influence the deal structure in a way that puts their interests ahead of those of investors.
The Ginnie Mae EBO Game: Shrinking Opportunities
January 26, 2023
Thanks to rising rates and sagging home values, early buyouts from Ginnie MBS are starting to look long in the tooth. Opportunities are out there, but are not for the faint of heart. (Includes data chart.)

More Inside MBS & ABS

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Inside Nonconforming Markets

Mix of Expanded-Credit Loans in MBS Shifts in 4Q22
January 27, 2023
Investment-property loans gained share in expanded-credit MBS issuance and many of the typical contributors to deals were absent in the fourth quarter. (Includes three data charts.)
First Republic Looking to Gain Share in Jumbo Market
January 27, 2023
First Republic Bank is working to increase its share of jumbo originations, using a combination of customer service and low interest rates.
GSE Business Even More Concentrated in ‘Core’ Products
January 27, 2023
Conforming jumbos took the biggest hit in the fourth quarter as the volume of business Fannie Mae and Freddie Mac conduct in various noncore categories decreased.
CDFI Proposal Could Impact Non-Agency Players
January 27, 2023
Changes are under consideration for determining which firms qualify as community development financial institutions. Under a current proposal, CDFIs would have to follow the CFPB’s ability-to-repay underwriting requirements.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Agency MSR Transfers Ease Toward End of Record Year
January 20, 2023
More than $1 trillion of agency servicing rights changed hands in 2022. While bulk MSR transfers soared last year, the coissuance market was hammered by the sharp decline in agency business. (Includes three data charts.)
Delinquencies on Agency Mortgages Jump in Fourth Quarter
January 20, 2023
The delinquency rate on loans in agency MBS increased gradually between March and September, then spiked during the fourth quarter. (Includes data chart.)
A Growing Fear: Too Much Servicing for Sale?
January 20, 2023
Last year was a barn-burner for MSR sales. But so many nonbanks need to sell this year that too much supply has resulted in weaker pricing. What’s a mortgage banker to do?
Profitability a Key Factor as Wells Shrinks Mortgage Operations
January 20, 2023
Officials at the bank suggest Wells won’t take much of a hit from the loss of correspondent production. And profitability on the servicing side is expected to improve as the portfolio shrinks.

More Inside Mortgage Trends

Inside FHA/VA Lending

Lakeview Takes Top Ginnie Servicer Spot at End of 2022
Lakeview/Bayview Loan Servicing edged out Freedom Mortgage as the top servicer in the $2.1 trillion GNMA market. FHA delinquencies rose throughout the year, but the VA default rate remained subdued. (Includes four data charts.)
GSE Pricing Changes May Impact FHA Lending
By targeting price cuts at low-FICO score and high-LTV borrowers, the new pricing grids of Fannie Mae and Freddie Mac could increase market overlap with FHA.
IRRRL Continues to Slide to Irrelevance in Late 2022
Only 23 lenders made streamlined VA refinance loans during the fourth quarter of 2022 as high interest rates have made the program nearly useless for veterans.
Ginnie Willing to Work with Struggling Lenders
One of the keys for lenders facing financial difficulties is to communicate early and often with Ginnie Mae, according to the agency’s chief risk officer.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Agency MSR Transfers Ease Toward End of Record Year
More than $1 trillion of agency servicing rights changed hands in 2022. While bulk MSR transfers soared last year, the coissuance market was hammered by the sharp decline in agency business. (Includes three data charts.)
Inside Mortgage Finance
Mortgage Lending Still in Collapse Mode at 2022 Finish Line
Primary-market originations of first-lien home loans fell to $335 billion in the final three months of last year — the lowest output since the second quarter of 2014. All major lenders saw volume decline. (Includes two data charts.)
Inside Nonconforming Markets
Mix of Expanded-Credit Loans in MBS Shifts in 4Q22
Investment-property loans gained share in expanded-credit MBS issuance and many of the typical contributors to deals were absent in the fourth quarter. (Includes three data charts.)
Inside MBS & ABS
CLO Market Ends 2022 with Modest Decline in Issuance
Despite a surge in middle-market CLO issuance in the fourth quarter, total production of structured credit deals drifted lower in late 2022. Blackstone was the most active sponsor, while JPMorgan led in CLO underwriting. (Includes two data charts.)
Inside the CFPB
Consumers Filed Fewer Mortgage-Related Complaints in 2022
The CFPB received fewer complaints from consumers about mortgages in 2022. Criticisms about loan modifications inched up 1.5% on an annual basis, despite a 6.1% drop from the third to the fourth quarter. (Includes two data charts.)
Inside The GSEs
Depositories Gain Some Share in GSE Servicing
The nonbank share of GSE servicing peaked early in 2022. Later in the year, large banks regained some share. (Includes two data charts.)
Inside FHA/VA Lending
Lakeview Takes Top Ginnie Servicer Spot at End of 2022
Lakeview/Bayview Loan Servicing edged out Freedom Mortgage as the top servicer in the $2.1 trillion GNMA market. FHA delinquencies rose throughout the year, but the VA default rate remained subdued. (Includes four data charts.)

Inside The GSEs

Depositories Gain Some Share in GSE Servicing
The nonbank share of GSE servicing peaked early in 2022. Later in the year, large banks regained some share. (Includes two data charts.)
FHFA Updates GSE Pricing Framework
The new pricing matrices for Fannie and Freddie may create modest net increases in the cost of a mortgage, but FHFA says that will support more lending for low-income borrowers.
More Inside The GSEs

Sales of bulk mortgage servicing rights are at a fever pitch these days. Has your shop gotten in on the buying frenzy?