Latest News

Angelo Gordon Brings Another Non-QM MBS with CDFI Loans
September 16, 2019
CDFI loans reduce the amount of risk Angelo Gordon is required to retain from the MBS.
Home-Equity Lending Up 27% in 2Q19. However…
September 16, 2019
In terms of new HELOC commitments for the second quarter, Bank of America led the pack with $2.77 billion, followed by Wells Fargo ($1.91 billion) and Citizens Bank ($1.50 billion).
FHFA Revises Cap Structure for Fannie and Freddie
September 13, 2019
Regulator increases the GSEs' multifamily caps while, at the same time, removing exclusions for green loans.
Banks Not Interested in Growing ABS Supply
September 13, 2019
After an unusual slump in the first three months of the year, the market grew by $65.07 billion to $850.36 billion as of the end of June.

Expanded Credit
Expanded-Credit Originations Trail Strong Market in 2Q
Production of expanded-credit mortgages increased in the second quarter but not by nearly as much as the surge in total originations. The sector was crowded out to some extent by conventional loan refinances.
Issuance
Agency MBS Issuance Up Sharply on Boom in Refi
Fannie, Freddie and Ginnie issued a combined $170.7 billion in new single-family MBS in August, their highest monthly volume since November 2012. A big surge of refinance business was a major factor.
Originations
First Timers Continue to Rely on GSEs, FHA/VA
Private MIs and Freddie Mac posted relatively larger gains in first-time buyer business during the second quarter, though the government-insured market was still the biggest source of such loans.
Earnings
Banks Report 2Q19 Boost in Mortgage Banking Income
Mortgage banking income was up in the second quarter but didn’t keep pace with big increases in loan origination volume and secondary market sales. Wells Fargo accounted for the lion’s share of the increased profitability.
Channels
Steady Credit Trends in 2Q19 Agency MBS Market
Purpose and production channel matter in loan credit characteristics but the biggest difference maker is whether the mortgage has a government guarantee.
Investors
Chase and BofA Lead Banks in 2Q19 MBS Buying Spree
Nearly all of the banking industry’s growth in residential MBS holdings was in Fannie, Freddie and Ginnie pass-through securities.

Inside Mortgage Finance

Trump Plans Wholesale Reform of Housing Finance
As most observers expected, the Treasury reform plan leaves most of the important details for Congress or the Federal Housing Finance Agency to figure out.
Ending GSE Profit Sweep Discussed at Senate Hearing
Treasury Secretary Steven Mnuchin shed some light on how renegotiating the preferred stock purchase agreements by the Treasury and the Federal Housing Finance Agency might impact plans to recapitalize Fannie Mae and Freddie Mac.
- Home-Equity Lending Up in 2Q19 as Market Shrinks
- New HMDA Loan Fields Detail Business-Purpose Share, More
More Inside Mortgage Finance

Inside MBS & ABS

Bank ABS Investment Falls in Growing 2Q19 Market
September 12, 2019
Most of the industry's pullback in ABS holding resulted from portfolio trimming by the three largest bank investors. Total ABS outstanding rose sharply in the second quarter.
CLO Production Up in 2Q But 2019 Still Trailing 2018
September 12, 2019
Year-to-date CLO issuance lagged behind the pace set in 2018 because of a slowdown in refinance transactions. Octagon Investment Partners was the most active sponsor at midyear.
Treasury Proposal Aimed at GSEs’ Recap and Reform
September 12, 2019
The Treasury Department envisions a multi-year recapitalization of the GSEs. Secretary Steven Mnuchin told the Senate Banking Committee on Tuesday that the process is already underway.
Industry Reserves Comment on Housing-Finance Reform Plan
September 12, 2019
While most in the industry held back their comments, Milken Institute Director Eric Kaplan said the plan’s focus on capitalization of Fannie Mae and Freddie Mac makes it looks like the release of the GSEs is really in the cards.

More Inside MBS & ABS

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Inside Nonconforming Markets

Treasury Calls for Reforms to Boost Non-Agency Market
September 13, 2019
The Treasury report on housing-finance reform included a number of suggestions on how federal regulators could promote a level playing field between the GSEs and non-agency players.
Treasury, Redwood Weigh In on QM ‘Patch’ Resolution
September 13, 2019
In comments on ways to address the end of the qualified mortgage patch, the Treasury suggested using a bright-line test while Redwood cautioned against using a metric based on the interest rate of a mortgage.
Jumbo Servicing Continues Steady Growth in Second Quarter
September 13, 2019
Servicing portfolios stocked with jumbo mortgages continued to steadily increase in the second quarter. However, portfolio growth at the top two servicers hasn’t kept pace with the market overall.
Nonbanks Differ on Jumbo Loan Sale Strategies
September 13, 2019
The top correspondent sellers of jumbo mortgages vary in where they sell loans. About half of sales in 2018 were to banks, about a third went to nonbanks and the rest was delivered directly to non-agency MBS.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Wholesale-Broker Channel a Big Winner in 2Q19 Rally
September 6, 2019
Mortgage brokers upped their market shares in both government-insured and conventional-conforming lending. Retail production also fared well in 2Q19.
In a Down Year for Originations, MBA’s Revenue Increases
September 6, 2019
For the fiscal year ending Sept. 30, 2018, MBA took in $65.1 million of revenue versus expenses of $54.4 million, according to a newly released tax filing. Roughly half of its annual revenue comes from its hugely popular annual convention.
MSR Values Tank in 2Q19; Bank SFO Balances Decline
September 6, 2019
Most of the industry's declining balance of servicing for others was attributable to Wells Fargo, JPMorgan Chase and Bank of America.
Lenders See Significant Increase in Mortgage Profits in 2Q19
September 6, 2019
Mortgage lenders posted a net gain of $1,675 per origination in the second quarter, the best quarter the industry has seen since the third quarter of 2016, the Mortgage Bankers Association said in a recent report.

More Inside Mortgage Trends

Inside FHA/VA Lending

HUD Recommends Scorecard to Track Loan Performance
The department has recommended a scorecard to ensure FHA borrowers re-ceive financing that is appropriate and sustainable for long-term homeowner-ship. Meanwhile, the Treasury has outlined the new role Fannie Mae and Freddie Mac would play in a revamped housing-finance system.
Bigger Role Seen for Ginnie in Housing Finance
The Treasury has recommended Congress empower Ginnie Mae to provide “last position” guarantee on MBS backed by conventional home loans and au-thority to adjust its guarantee fee.
HUD Mulls Formal Rulemaking on Downpayment Assistance
Despite a legal setback, the department said it intends to proceed with a for-mal rulemaking on downpayment assistance provided by government entities. This time, though, with proper notice to stakeholders.
Government Correspondent Sales Strong in 2018
Overall, 42.8% of government-backed loans originated in 2018 were sold to unaffiliated non-agency buyers, according to recently released Home Mortgage Disclosure Act data. The majority of sellers with at least $1.0 billion in sales were nonbanks.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Wholesale-Broker Channel a Big Winner in 2Q19 Rally
Mortgage brokers upped their market shares in both government-insured and conventional-conforming lending. Retail production also fared well in 2Q19.
Inside Mortgage Finance
Trump Plans Wholesale Reform of Housing Finance
As most observers expected, the Treasury reform plan leaves most of the important details for Congress or the Federal Housing Finance Agency to figure out.
Inside Nonconforming Markets
Treasury Calls for Reforms to Boost Non-Agency Market
The Treasury report on housing-finance reform included a number of suggestions on how federal regulators could promote a level playing field between the GSEs and non-agency players.
Inside MBS & ABS
Bank ABS Investment Falls in Growing 2Q19 Market
Most of the industry's pullback in ABS holding resulted from portfolio trimming by the three largest bank investors. Total ABS outstanding rose sharply in the second quarter.
Inside the CFPB
Treasury Department Calls for End of QM ‘Patch’
The Treasury Department in its housing-finance reform plan has asked the CFPB to end the qualified mortgage “patch” as scheduled and establish a bright-line rule in its place.
Inside The GSEs
GSE MBS Issuance Rockets to Biggest Month in 6 Years
A major influx of refinance business pushed Fannie and Freddie MBS issuance to $120.25 billion in August, their biggest monthly production since January 2013.
Inside FHA/VA Lending
HUD Recommends Scorecard to Track Loan Performance
The department has recommended a scorecard to ensure FHA borrowers re-ceive financing that is appropriate and sustainable for long-term homeowner-ship. Meanwhile, the Treasury has outlined the new role Fannie Mae and Freddie Mac would play in a revamped housing-finance system.

Inside The GSEs

GSE MBS Issuance Rockets to Biggest Month in 6 Years
A major influx of refinance business pushed Fannie and Freddie MBS issuance to $120.25 billion in August, their biggest monthly production since January 2013.
Treasury’s Housing Reform Plan to Privatize the GSEs
Although the report notes that the administration’s preference is for legislative reform, the plan emphasizes that reform “should not and need not wait on Congress.”
More Inside The GSEs

Government reports show mortgage companies added just a small number of employees in April. But anecdotal evidence suggests real-world hiring could be rising more quickly. Is your shop planning on adding staff in the second half of the year?