Latest News

2023 Fannie/Freddie Conforming Loan Limit Spikes 12%
November 29, 2022
Home price appreciation has slowed of late, but year-over-year it's still up more than 12%...
A Price War During a Difficult Time for Originators
November 29, 2022
A fair question: Will today's price breaks come back to haunt lenders tomorrow?
Non-Agency Jumbo Lending Takes a Market Share Hit
November 29, 2022
Near the end of the third quarter, the average interest rate on a 30-year fixed-rate jumbo was 6.384%...
Phoenix Offers GSE MSRs With a Mid-Atlantic Concentration
November 29, 2022
The seller wants to close the deal in early 2023...

News
Few Positives as Decline in Ginnie Issuance Steepens
The falloff in refinance issuance is easing, but perhaps only because it's nearing rock bottom. (Includes two data charts.)
Issuance
Prime RMBS Market Flops in 3Q22: Five Deals Issued
Lenders cut back on jumbo originations in the third quarter, and they kept most of what they produced. The result: a 73% nosedive in prime RMBS issuance from the second quarter. (Includes three data charts.)
Investors
Banks Post Another Drop in Residential MBS in 3Q22
A market-wide slump in MBS fair market values accounted for most of the decline in reported bank holdings of these securities during the third quarter. And there was a significant increase in MBS held in bank trading accounts. (Includes two data charts.)
Mortgage Insurance
FHA Ekes Out Slight 3Q22 Gain as Other Insurers Fade
Originations of purchase mortgages with primary MI coverage declined in the third quarter, but the FHA stood alone with a sturdy 7% increase in purchase endorsements. National MI was the only private insurer to boost quarterly production. (Includes three data charts.)
Earnings
Banks Report Weakening Mortgage Banking Income
Publicly held banks reported a 20% decline in mortgage banking income from the second to the third quarter as more firms shift away from the originate-to-sell model. Servicing generally helped offset faltering profits on production and secondary marketing. (Includes data chart.)
Agency MBS
Decline in GSE Sales Accelerates in October
Sales of refinance loans plummeted to the lowest level in at least eight years. But purchase-mortgage sales had a bad month too. (Includes two data charts.)

Inside Mortgage Finance

Third-Party Lenders Gaining Ground in Slumping Market
Retail lending led the mortgage market to lower production volume in the third quarter as rates stayed stubbornly high and companies moved to cut overhead. (Includes six data charts.)
Delinquencies Fall Again, to All-Time Low
Late payments are at an historic low as the economy hums along with near-full employment, Inside Mortgage Finance’s loan performance survey shows. (Includes data chart.)
- A Price War at a Difficult Time for Lenders
- Time is Running Out for Better.com, Aurora
More Inside Mortgage Finance

Inside MBS & ABS

Bank ABS Holdings Decline Again in 2022 Third Quarter
November 23, 2022
Much of the downturn in bank ABS holdings reflects slumping fair-market values for these securities, but the industry also appeared to actively shed some assets. (Includes two data charts.)
Portfolio Buyers (Banks) a Force to be Reckoned With?
November 23, 2022
Earlier this year, banks saw an advantage in purchasing jumbo mortgages for their portfolios, but of late it seems as though the edge is beginning to erode.
CECL Standards Drove GSEs' Loan Loss Provisions
November 23, 2022
The new accounting standard, which went into effect just before the pandemic, requires the GSEs to anticipate losses over the life of the loan.
RMBS Outlook Dour, Performance Good Though
November 23, 2022
KBRA said that third-quarter MBS issuance volume didn’t meet its expectations and will drop rapidly in the coming year. Meanwhile, both DBRS and Moody’s noted that performance is stabilizing.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Non-Agency Jumbo Lending Takes a Hit as Interest Rates Rise
November 23, 2022
Originations of non-agency jumbo mortgages declined by 34.8% from the second to the third quarter, driven by rising interest rates. The decline in the jumbo sector was largely in line to trends in the mortgage market. (Includes data chart.)
Jumbo Servicing Portfolios Increase Slightly in 3Q22
November 23, 2022
Despite a drop in jumbo originations, servicing portfolios at many shops increased during the third quarter. Top-ranked Wells Fargo saw its jumbo servicing portfolio go up by less than 1%, while second-ranked Chase did slightly better at 2.6%. (Includes data chart.)
Commercial Lender Decides to Enter the Non-QM Arena
November 23, 2022
Stronghill Capital of Austin, TX, has launched a new residential lending division that will focus on non-qualified mortgages, non-agency jumbos and loans for investment purposes. This comes at a time when the rest of the non-agency sector is caving in.
WMC Spills Red Ink, Reports Zero Non-QM Acquisitions in 3Q
November 23, 2022
Western Asset Mortgage Capital is in the middle of a strategic review that could result in a sale or merger of the real estate investment trust.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Nonbanks Endure Another Harsh MB Earnings Cycle
November 18, 2022
UWM had, by far, the most successful third quarter among publicly traded nonbank mortgage companies, boosting net income by 51% from the previous period. But others saw sharp declines in profitability and four nonbanks posted losses. (Includes data chart.)
Bank and Thrift Servicing Values Continue to Rise in 3Q
November 18, 2022
Banks and thrifts continued to see more value in their mortgage servicing rights in the third quarter, while their portfolios increased only slightly. (Includes data chart.)
Shifting MSR Market Gives Lenders a Lot to Think About
November 18, 2022
Loan-level analytics can help small and mid-sized mortgage companies decide whether to sell or retain newly originated mortgage servicing rights as they plan survival strategies for an increasingly hostile market.
Third Layoff Round Strikes Blend Amid Nonstop Losses
November 18, 2022
The fintech expects cost savings tied to the workforce reductions to materialize starting in the first quarter of 2023. Meanwhile, KBW upgraded the company’s stock to market perform.

More Inside Mortgage Trends

Inside FHA/VA Lending

Refis Continue to Drag Govt-Insured Volume Down
VA lending took the brunt of the 3Q22 downturn as its streamlined refinance business all but disappeared. Meanwhile, UWM overtook Rocket in the FHA market. (Includes three data charts.)
Experts Bemoan Looming Ginnie Mae Eligibility Rule
Small issuers will have two options: sell production to aggregators rather than Ginnie or sell off mortgage servicing rights.
FHA Adds Private Flood Insurance Option
The rule, which takes effect Dec. 21, differs somewhat from those that apply to other federally backed mortgages.
MMIF Audit Report Spurs New Calls for MIP Cut
Industry stakeholders once again called for cuts to FHA’s mortgage insurance premium last week after the agency announced a record high capital ratio for its Mutual Mortgage Insurance Fund. (Includes data chart.)

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Nonbanks Endure Another Harsh MB Earnings Cycle
UWM had, by far, the most successful third quarter among publicly traded nonbank mortgage companies, boosting net income by 51% from the previous period. But others saw sharp declines in profitability and four nonbanks posted losses. (Includes data chart.)
Inside Mortgage Finance
Third-Party Lenders Gaining Ground in Slumping Market
Retail lending led the mortgage market to lower production volume in the third quarter as rates stayed stubbornly high and companies moved to cut overhead. (Includes six data charts.)
Inside Nonconforming Markets
Non-Agency Jumbo Lending Takes a Hit as Interest Rates Rise
Originations of non-agency jumbo mortgages declined by 34.8% from the second to the third quarter, driven by rising interest rates. The decline in the jumbo sector was largely in line to trends in the mortgage market. (Includes data chart.)
Inside MBS & ABS
Bank ABS Holdings Decline Again in 2022 Third Quarter
Much of the downturn in bank ABS holdings reflects slumping fair-market values for these securities, but the industry also appeared to actively shed some assets. (Includes two data charts.)
Inside the CFPB
CFPB Appeals Funding Decision to the Supreme Court
The bureau, which is speeding things up to make sure the case is decided by June, says the Fifth Circuit decision contradicts the Constitution, historical practice, and case law.
Inside The GSEs
Higher Interest Rates Juice FHLBanks’ 3Q22 Earnings
Systemwide, FHLBank advances grew 36.5% in the third quarter, helping drive a 51.1% sequential increase in profits. (Includes three data charts.)
Inside FHA/VA Lending
Refis Continue to Drag Govt-Insured Volume Down
VA lending took the brunt of the 3Q22 downturn as its streamlined refinance business all but disappeared. Meanwhile, UWM overtook Rocket in the FHA market. (Includes three data charts.)

Inside The GSEs

Higher Interest Rates Juice FHLBanks’ 3Q22 Earnings
Systemwide, FHLBank advances grew 36.5% in the third quarter, helping drive a 51.1% sequential increase in profits. (Includes three data charts.)
Lower Earnings Compound Capital Shortfalls at the GSEs
Sagging home prices forced the GSEs to post a combined $4.34 billion provision for credit losses in the third quarter, undercutting retained earnings. (Includes data chart.)
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?