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Short Takes: More Cash for New Rez? / The GSE SIFI Question / A Moot Point? / Waiting on the FHFA for Capital Guidance / Texas Capital Executive Departs for Greystone
June 25, 2019
Of course, the whole point is moot though, isn’t it? Fannie and Freddie continue to be wards of the federal government. If they fail to meet a capital test, what’s the worst Uncle Sam can do? Put them in conservatorship? They’re already there...
Mortgage Brokers Making Major Inroads in FHA/VA Lending
June 25, 2019
Then again, nearly all of the increase in broker activity came from United Wholesale Mortgage, the dominant funder of broker loans.
Rushmore Expands Production Reach, Agrees to Buy TPO Unit
June 25, 2019
Roughly three years ago, Rushmore – a privately held nondepository – entered the origination market as a direct-to-consumer lender. Prior to that, it had been known primarily as a subservicing specialist.
Chase Brings Second Prime Non-Agency MBS in Less than a Week
June 25, 2019
Mortgages in the newer deal have seasoned for an average of three months while loans in the other MBS are roughly 15 months old.

Home-equity lending fell 15% in the first quarter of 2019 as the total supply of HEL debt outstanding continued to shrink. Heavy cash-out refinancing was a factor.

Investors

MBS Investors Step Up to Fill Central Bank’s Fading Role

The Federal Reserve reduced its holdings of agency MBS by $47 billion during the first quarter, but several other investor groups picked up the slack. Total MBS outstanding grew 0.4% during the first three months of the year.

Servicing

Banks Slow Portfolio Additions in First Quarter

Banks and thrifts continued to increase their first-lien holdings in the first quarter, but the rate of portfolio growth is slowing. Portfolios at Wells and Chase declined in the first quarter while BofA boosted its holdings.

Originations

Jumbo Correspondent Lending Share Down in 1Q

The correspondent share of jumbo originations declined in the first quarter of 2019 after reaching relatively high levels in the second half of 2018. The retail channel remained the main source of production while brokers gained market share.

Ginnie Mae Issuance

Ginnie MBS Issuance Sprouts as Purchase and Refi Boom

The purchase-mortgage and refinance sectors saw nearly identical gains in Ginnie volume last month, with most of the refi increase in rate-term transactions.

Fannie Mae

California Still the Mother Lode of GSE Market in 1Q19

The Golden State's high concentration of broker loans and refinancing is reflected in its top two sellers: United Wholesale Mortgage and Quicken Loans.

Inside MBS & ABS

Securitization Starts Slowly in 2019 Despite ECM Bump

June 20, 2019

A sharp increase in the securitization rate of nonprime and expanded-credit mortgages was partly due to seasoned loans and GSE-eligible mortgages. Agency securitization rates were sluggish.

Agency REMIC Volume Up, Wells Top Underwriter in 1Q

June 20, 2019

Ginnie Mae and Freddie Mac both posted strong gains in REMIC issuance during the first quarter. Wells Fargo Securities was the top underwriter of these deals.

Moody’s Proposal Would Boost Ratings for GSE CRT

June 20, 2019

Moody's proposed changes to its rating criteria that would prompt upgrades for outstanding GSE risk-sharing transactions and prime non-agency MBS.

Pretium Inks Deal for Non-QM Securitizer Deephaven. More Acquisitions in the Queue?

June 20, 2019

Pretium Partners, the creation of former Goldman Sachs executive Donald Mullen, has agreed to buy non-QM MBS issuer Deephaven Mortgage for an undisclosed sum. Market watchers believe more acquisitions may lie ahead for Pretium.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Interest-Only Lending Declines in First Quarter

June 21, 2019

Originations of interest-only mortgages declined in the first quarter among a group of lenders that participate in the sector. Close to 70% of the loans held by First Republic Bank, the nation's top IO lender, have IO features.

FirstKey Preps First Post-Crisis HELOC MBS

June 21, 2019

The company is set to issue the first post-crisis non-agency MBS stocked entirely with home-equity lines of credit. Fitch assigned preliminary AAA ratings to the deal.

BofA Jumps to Top ARM Lender Spot in First Quarter

June 21, 2019

Bank of America overtook Chase and Wells Fargo as the top originator of adjustable-rate mortgages in the first quarter of 2019. The ARM share of total originations also increased slightly.

Moody’s Sees Risks from QM ‘Patch’ Loans in Non-Agency MBS

June 21, 2019

Investors in non-agency MBS face increased risks from GSE-eligible mortgages according to Moody's. The loans are allowed to have relatively high DTI ratios while still receiving QM status.

More Inside Nonconforming Markets

Inside Mortgage Trends

Broker Channel Expanding in All Major Mortgage Products

June 14, 2019

Broker originations accounted for a growing share of first-quarter production in all three major mortgage products. United Wholesale accounted for the channel's growth.

Mortgage Banking Earnings Weak Again in Early 2019

June 14, 2019

The average firm posted a pretax net loss of $214,000 loss in the first quarter. Retail-focused lenders and independent mortgage bankers fared relatively better.

Banks Retreat a Little More From SFO, Values Soften

June 14, 2019

While banks overall reduced their servicing for others, Chase, Flagstar, M&T and MUFG Union Bank all built up their portfolios in the first quarter.

Google a Better Gauge of Refi Applications than MBA Survey?

June 14, 2019

Some industry participants are questioning the accuracy of the MBA’s refinance application index, suggesting that Google search trends are a better gauge.

More Inside Mortgage Trends

Inside FHA/VA Lending

Wholesale-Broker Channel Growing in Gov't Lending

Correspondent production remained the biggest source of FHA and VA loans, but the rapid growth at United Wholesale Mortgage is reshaping channel dynamics.

IT Modernization: Top Priority at Ginnie, Other Agencies

IT modernization is a top priority at Ginnie Mae, FHA, VA and USDA despite a serious shortage of funds to make the changes needed to create electronic platforms for digitized mortgages, facilitate risk management, and provide consumers better service.

HECM Lender RMS Slated to be Sold in Ditech Liquidation

A buyer has emerged for Ditech's reverse lending division. However, it's a "stalking horse" bid, subject to bankruptcy court approval.

Exempt Veterans Charged VA Funding Fees

An audit by the VA IG found that thousands of disabled veterans may have been charged home loan funding fees even though they are exempt.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends

Broker Channel Expanding in All Major Mortgage Products

Broker originations accounted for a growing share of first-quarter production in all three major mortgage products. United Wholesale accounted for the channel's growth.

Inside Mortgage Finance

Agency MSR Market Keeps Growing, Banks Pull Back

Most of the decline in bank MSR activity in the first quarter was attributable to Wells Fargo, while Flagstar accounted for a big chunk of the increase among savings institutions.

Inside Nonconforming Markets

Interest-Only Lending Declines in First Quarter

Inside MBS & ABS

Securitization Starts Slowly in 2019 Despite ECM Bump

A sharp increase in the securitization rate of nonprime and expanded-credit mortgages was partly due to seasoned loans and GSE-eligible mortgages. Agency securitization rates were sluggish.

Inside the CFPB

Industry Concerned About 2018 HMDA Public Release

The public release of the complete 2018 HMDA dataset may lead to more fair lending scrutiny as it contains more information and is easy to access. Should lenders be concerned?

Inside The GSEs

Refi Surge Boosts GSE MBS in May, Market Share Steady

Fannie's MBS issuance was up significantly from April to May while Freddie posted a smaller monthly gain. Purchase mortgages and refinancing both rose substantially.

Inside FHA/VA Lending

Wholesale-Broker Channel Growing in Gov't Lending

Correspondent production remained the biggest source of FHA and VA loans, but the rapid growth at United Wholesale Mortgage is reshaping channel dynamics.

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?