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Mortgage Complaints Up Slightly in 2Q20
August 5, 2020
Complaints regarding mortgage applications increased 25.7% in the second quarter...
Signs of Life in Bulk Servicing Sales but Bids Remain Weak
August 5, 2020
Investment bankers point to the obvious: Bid prices are hardly enticing, especially with 30-year fixed-rate loans being offered at 3.0% or less...
Bayview to Issue Its First Prime Non-Agency MBS
August 5, 2020
The deal received preliminary AAA ratings from Moody’s Investors Service and S&P Global Ratings, with credit enhancement of 13.75% on the senior tranche.
A Small Profit for MGIC in 2Q20 but Delinquency Inventory Soars
August 5, 2020
However, despite the bad news on late payments and set-asides, MGIC wrote new insurance on $28.2 billion of residential product, an impressive sequential gain of 55.5%.

Servicing
GSE Servicing Fragments in 2Q20, Forbearance Totals Up
Hundreds of smaller GSE sellers retained more servicing in the second quarter than they usually do, setting the stage for increased bulk MSR trades when buyers get more confident. (Includes two data charts.)
Characteristics
GSE Refi Market Leans to Lower-Risk Loans in 2Q20
Only 9.2% of refi loans sold to Fannie and Freddie in the second quarter had credit scores below 700, the lowest such concentration on record. (Includes two data charts.)
Originations
Mortgage Originations Shoot to 17-Year High in 2Q20
Residential lenders originated $865 billion of mortgages in the second quarter, the highest level since 2003. While most shops reported robust increases, a number of top-tier banks and nonbanks failed to keep pace. (Includes two data charts.)
ABS
Auto Finance Drives Away in Slumping 2Q20 ABS Market
Although ABS issuance backed by auto finance fell 26% from the first to the second quarter, the sector still accounted for nearly 57% of non-mortgage securitization in the first half of 2020. (Includes two data charts.)
Ginnie Mae
GNMA MBS Issuance Hits New Record Level in 2Q20
VA refinance activity drove much of the increase from the first to the second quarter, and the veterans' program accounted for over half of Ginnie MBS issuance during the period. (Includes four data charts.)
Securitization
Non-Agency MBS Issuance Diverges in Second Quarter
Issuance of prime non-agency MBS dropped in the second quarter while expanded-credit activity was up 5% from the first quarter. (Includes data chart.)

Inside Mortgage Finance

Crosscurrents in Servicing: Fragmented and Forbearing
Delinquency rates generally went higher in the second quarter, and forbearance counts continued to climb. With MSR sales down, larger servicers generally ceded ground to smaller firms. (Includes three data charts.)
Signs of Life in Bulk MSR Sales but Bids Remain Weak
The bulk MSR market is on the mend but it’s hardly a “good news” story. Bids are weak and dealmakers are advising sellers to wait.
- A $4.3 Billion 2Q Profit for the GSEs. COVID Charges Decline
- NYDFS Charges First American over Data Breach
More Inside Mortgage Finance

Inside MBS & ABS

GSE Earnings Rebound in 2Q20, SF Loan Holdings Up
July 30, 2020
After taking big hits in credit expenses and hedging losses in early 2020, Fannie and Freddie reported more normal net income in the second quarter. (Includes data chart.)
Commercial MBS Pummeled in 2Q20, Agency MF Solid
July 30, 2020
Not surprisingly, mortgages on retail and lodging properties were hit the hardest in the economic fallout of the coronavirus. Agency multifamily MBS issuance rose significantly in the second quarter. (Includes data chart.)
Ginnie Not Exactly Swamped with New Issuer Applications
July 30, 2020
Where are all the Ginnie Mae applicants? The waiting list has dwindled to a trickle. Reason: The pandemic and related issues.
Strong Demand for Non-QM MBS, but Issuance Uncertain
July 30, 2020
Investor demand for non-QM MBS is currently near levels seen before volatility in March, helping to sustain issuance volume. The deal flow could slow soon due to limited originations and economic trends.

More Inside MBS & ABS

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Inside Nonconforming Markets

Shellpoint Tops Non-Agency MBS Servicers in Second Quarter
July 24, 2020
Shellpoint Mortgage Servicing is the top servicer, by far, of non-agency MBS issued since the beginning of 2019. The firm handles both prime loans and expanded-credit mortgages. (Includes data chart.)
MBS Investors Question Reporting by Non-Agency Servicers
July 24, 2020
The lack of standardization in the non-agency MBS market has raised concerns about how servicers are handling loans in forbearance. Critical details regarding loan performance are missing, according to investors.
Non-QM Lenders Regaining Footing
July 24, 2020
Demand for non-QMs in the secondary market is helping lenders loosen underwriting standards and drive down interest rates for new production. Five non-QM MBS hit the market in the past two weeks.
First Republic’s Jumbo Production Up Sharply in Second Quarter
July 24, 2020
The lender increased its mortgage originations by 67% in the second quarter, with an emphasis on refinances.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Bulk MSR Transfers Swoon in 2Q20, Coissuance Slows
July 31, 2020
Most of the major bulk buyers of agency servicing rights moved to the side-lines in the second quarter of 2020, and more mid-sized lenders opted to hold MSR rather than sell through coissuance arrangements. (Includes three data charts.)
Banks Report Huge Gain in Mortgage Banking Income
July 31, 2020
The second quarter of 2020 generated the strongest profits from mortgage banking that the banking industry has seen in years. MSR accounting issues were a drag, but production volume and margins soared. (Includes data chart.)
The Inherent Value of Rocket Companies: $44 Billion
July 31, 2020
On Thursday, Rocket Companies, the parent of Quicken Loans, will debut on the NYSE. If warmly received, the mortgage IPO could pave the way for other deals.
Black Knight to Acquire Optimal Blue for $1.8 Billion
July 31, 2020
Data vendor Black Knight plans to combine its Compass Analytics business with Optimal Blue in a newly formed entity, with an emphasis on cross-selling products.

More Inside Mortgage Trends

Inside FHA/VA Lending

FHA/VA Delinquencies Soar in 2Q20, Is the Worst Over?
There was a huge spike in early-payment delinquencies in April that migrated to more serious categories of default in May and June. Last month saw a huge increase in servicer buyout of delinquent loans. (Includes four data charts.)
Large FHA Lender Loses Legal Battle in M&A Case
FHA/VA lending giant Freedom Mortgage lost a court battle over an aborted M&A deal with RoundPoint Mortgage. Is a settlement in the works?
Former Ginnie Chief Tozer Continues to Worry About Liquidity
Ted Tozer, the former Ginnie president, wants to head off a potential liquidity crisis before it happens. Is anyone listening?
FHA Employs 'Waterfall' Model for Loss Mitigation
One option places past-due mortgage amounts in separate junior liens of up to 30% of the outstanding. The lien is repayable when the mortgage ends, which is usually when a borrower refinances or sells their home.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Bulk MSR Transfers Swoon in 2Q20, Coissuance Slows
Most of the major bulk buyers of agency servicing rights moved to the side-lines in the second quarter of 2020, and more mid-sized lenders opted to hold MSR rather than sell through coissuance arrangements. (Includes three data charts.)
Inside Mortgage Finance
Crosscurrents in Servicing: Fragmented and Forbearing
Delinquency rates generally went higher in the second quarter, and forbearance counts continued to climb. With MSR sales down, larger servicers generally ceded ground to smaller firms. (Includes three data charts.)
Inside Nonconforming Markets
Shellpoint Tops Non-Agency MBS Servicers in Second Quarter
Shellpoint Mortgage Servicing is the top servicer, by far, of non-agency MBS issued since the beginning of 2019. The firm handles both prime loans and expanded-credit mortgages. (Includes data chart.)
Inside MBS & ABS
GSE Earnings Rebound in 2Q20, SF Loan Holdings Up
After taking big hits in credit expenses and hedging losses in early 2020, Fannie and Freddie reported more normal net income in the second quarter. (Includes data chart.)
Inside the CFPB
Democrats Want Kraninger Out Over Pandemic Response
Democratic lawmakers have called for the resignation of CFPB Director Kathy Kraninger over the bureau's handling of the response to the coronavirus pandemic, particularly its oversight of mortgage servicers.
Inside The GSEs
GSEs Post Strong 2Q20 Earnings, Despite CECL, Pandemic
The improved financial performance of the GSEs largely reflects the impact of CECL. The provisions for losses that would have been made in 2Q20 under the old accounting standard were already accounted for by CECL, which was adopted in December. (Includes data chart.)
Inside FHA/VA Lending
FHA/VA Delinquencies Soar in 2Q20, Is the Worst Over?
There was a huge spike in early-payment delinquencies in April that migrated to more serious categories of default in May and June. Last month saw a huge increase in servicer buyout of delinquent loans. (Includes four data charts.)

Inside The GSEs

GSEs Post Strong 2Q20 Earnings, Despite CECL, Pandemic
The improved financial performance of the GSEs largely reflects the impact of CECL. The provisions for losses that would have been made in 2Q20 under the old accounting standard were already accounted for by CECL, which was adopted in December. (Includes data chart.)
Are GSE Fees on Early Forbearance Loans Misguided?
Urban Institute researchers estimate the 7% fee the GSEs charge to purchase loans that have gone into forbearance after closing squeezes 255,000 creditworthy borrowers out of the market.
More Inside The GSEs

Mortgage rates are on a bit of a roller coaster ride these days, hitting historic lows before inching back up amid an uncertain economic environment. What sort of application volume are you seeing?