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Former Trump Ax on GSEs Weighs In: Reform is Done, It's All About Capital
June 11, 2021
Perhaps the lone Democrat in the Trump administration, Phillips believes the nation needs both Fannie and Freddie...
The Mortgage Employment Bonanza Continues. Signs of Easing? Nope
June 11, 2021
Need more workers to staff your shop? You're not alone...
REITs Rein in Agency MBS in 1Q21, But a Slight Uptick for Non-Agency
June 11, 2021
However, the group did post a 1.9% increase in its investment of non-agency MBS, boosting aggregate holdings to $7.07 billion.
Student Loan Refis: A Market Residential Lenders Should Tap?
June 11, 2021
In an interview with Inside Mortgage Finance, CampusDoor Chief Executive Officer Steve Winnie declined to say exactly what the new rate might be, but offered up this ray of hope: “We’ll be competitive.”

Federal Home Loan Banks
FHLB 1Q21 Earnings Fall; Member Advances Lead the Way
Low interest rates and excess liquidity drove down demand for FHLBank advances and ate into profits during the early part of the year (Includes three data charts.)
Servicing
Banks Mark Up MSR Values in 1Q21 But Shed Holdings
At its current pace, the banking industry will soon have less than $3 trillion of servicing-for-others on its books. But MSR values saw one of their biggest quarterly gains in early 2021.
Agency MBS
Agency Market Tumbles in May; IPLs Move Elsewhere
It's no surprise that the massive agency refinance boom showed signs of fizzling out, but purchase-mortgage business slumped just as housing season rolled into high gear. (Includes two data charts.)
Originations
First-time Buyers Hang on in Slumping Purchase Market
PennyMac ranked as the top producer of purchase-money mortgages in the first quarter of 2021. Quicken Loans remained the top refi lender but lost ground to many competitors. (Includes four data charts.)
Government-Insured Originations
VA Footprint Expands in 1Q21 Government Lending
Both FHA and VA saw sharp declines in purchase-money endorsements in the first quarter, and the FHA actually posted a bigger gain in refinance business. (Includes three data charts.)
Jumbo
Non-Agency Jumbo Sector Gains Market Share in First Quarter
Jumbos accounted for 9.2% of total first-lien originations in the first quarter of 2021, a slight improvement from 4Q20, but nowhere close to pre-pandemic levels. (Includes data chart.)

Inside Mortgage Finance

Agencies Lag Behind in 1Q21 Jumbo Mortgage Lending
Non-agency jumbo production grew 6.2% in the first quarter, but Fannie, Freddie and Ginnie saw a 19.5% downturn in conforming-jumbo business. A lean toward refinancing and pricing issues likely accounted for the difference in the two markets. (Includes three data charts.)
As Warehouse Commitments Ebb, New Entrants Appear
Nonbanks are starting to ease up on their credit requests, which portends a lending slowdown is in the works. Meanwhile, the warehouse club has two new entrants, in the form of Signature Bank and Fifth Third. (Includes data chart.)
- GOS Margins Get Squeezed. First Victim: TPOs
- Residential Appraisers Fear HUD Task Force
More Inside Mortgage Finance

Inside MBS & ABS

Fitch Takes Top Ranking in Rating Both MBS and ABS
June 10, 2021
All five rating services saw hefty increases in their ABS business in the first quarter as total rated issuance rose 88%. But there were clear winners and losers in the non-agency MBS market.
REITs Rein in Agency MBS in 1Q21, RMBS Up Slightly
June 10, 2021
REIT industry holdings of agency MBS have climbed 8% higher than they were when COVID forced many firms to shrink, but investment in non-agency MBS remains depressed. (Includes data chart.)
One-on-One with Former Treasury Official Phillips on the GSEs
June 10, 2021
In an interview with IM&A, former Treasury official Craig Phillips says capitalize the GSEs and let them go.
Non-QM MBS with Newer Loans Gaining Momentum
June 10, 2021
After months of sporadic issuance of MBS with newer non-QMs, five deals are in the market with fresh production. PIMCO is also selling off some older loans originated by Citadel Servicing.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Expanded-Credit Mortgage Originations Nearly Flat in 1Q21
June 4, 2021
An estimated $8.60 billion of non-qualified mortgages and other expanded-credit products were originated in the first quarter. But the sector’s market share was still below 1.0%. (Includes data chart.)
Correspondent Channel Gains Jumbo Market Share in 1Q21
June 4, 2021
Jumbo correspondent lending continued to make its comeback in the first quarter of 2021 after a sharp drop in volume tied to the coronavirus. Trends were mixed among lenders that focus on the retail channel. (Includes data chart.)
Mixed Feelings on New Loan Flow into Non-Agency MBS
June 4, 2021
The non-agency market has emerged as an alternative, albeit at a higher cost, for lenders to deliver GSE-eligible mortgages backed by investment properties and second homes. However, some lenders are concerned about the adverse impact GSE restrictions could have.
Three Firms Dominate Non-Agency MBS Servicing in 1Q21
June 2, 2021
The top three servicers of non-agency MBS issued during the first quarter of 2021 handled nearly 70% of the market. Shellpoint, the top-ranked firm, alone had a 41% share.

More Inside Nonconforming Markets

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Inside Mortgage Trends

Servicing Turns a Corner as Production Profits Recede
June 11, 2021
Nonbanks accounted for most of the improvement in servicing income in the first quarter while also reporting significant declines in originations and secondary marketing. Companies that use subservicers posted significantly higher earnings. (Includes data chart.)
Banks Report Another Big Haul for Mortgage Banking
June 11, 2021
Most of the big banks -- even Bank of America -- reported hefty gains in mortgage banking income during the first quarter that appear largely driven by net servicing fees. (Includes data chart.)
Two Mortgage Vendors Raise a Combined $100M
June 11, 2021
Stavvy has secured $40 million in an initial funding round while Spruce closed on a $60 million Series C round. The vendors provide tech-related services for lenders and servicers.
Repurchases Spike Higher in Bank Mortgage Bank Units
June 11, 2021
Most of the industry's big increase in first-quarter repurchases came from USAA Federal Savings Bank. (Includes data chart.)

More Inside Mortgage Trends

Inside FHA/VA Lending

GNMA Market Sags in May as Refinance Drops Sharply
A shift away from refinancing to purchase-mortgage lending played to the FHA's strengths as the program came close to reclaiming top-dog status in the government market.
Proposed HUD FY22 Budget Up 15%
The Biden administration has requested $68.7 billion in spending for the Department of Housing and Urban Development in fiscal 2022. Details?
Biden Takes Aim at Home Appraisal Disparity
Commemorating the 100th anniversary of the Tulsa Race Massacre, the White House announced the creation of a task force led by the housing secretary to root out discrimination in the appraisal and homebuying process.
VA Issues Final COVID-19 Partial Claim Program Rule
The final rule aligns the VA partial claim program with initiatives implemented by the FHA and USDA. The rule goes into effect July 27.

More Inside FHA/VA Lending

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Inside Mortgage Trends
Servicing Turns a Corner as Production Profits Recede
Nonbanks accounted for most of the improvement in servicing income in the first quarter while also reporting significant declines in originations and secondary marketing. Companies that use subservicers posted significantly higher earnings. (Includes data chart.)
Inside Mortgage Finance
Agencies Lag Behind in 1Q21 Jumbo Mortgage Lending
Non-agency jumbo production grew 6.2% in the first quarter, but Fannie, Freddie and Ginnie saw a 19.5% downturn in conforming-jumbo business. A lean toward refinancing and pricing issues likely accounted for the difference in the two markets. (Includes three data charts.)
Inside Nonconforming Markets
Expanded-Credit Mortgage Originations Nearly Flat in 1Q21
An estimated $8.60 billion of non-qualified mortgages and other expanded-credit products were originated in the first quarter. But the sector’s market share was still below 1.0%. (Includes data chart.)
Inside MBS & ABS
Fitch Takes Top Ranking in Rating Both MBS and ABS
All five rating services saw hefty increases in their ABS business in the first quarter as total rated issuance rose 88%. But there were clear winners and losers in the non-agency MBS market.
Inside the CFPB
Credit Bureaus Deflect Blame for Surge in Consumer Complaints
In testimony before lawmakers, executives of the big three credit reporting agencies said borrowers’ heightened concern over their financial obligations during the pandemic is to blame for the rise in grievances.
Inside The GSEs
GSE Business Tumbles in May as Refi Well Goes Dry
Lenders delivered $149 billion of refinance loans into Fannie and Freddie MBS issued in May, down 29% from April. The GSEs also saw a 4% drop in deliveries of purchase-money mortgages. (Includes two data charts.)
Inside FHA/VA Lending
GNMA Market Sags in May as Refinance Drops Sharply
A shift away from refinancing to purchase-mortgage lending played to the FHA's strengths as the program came close to reclaiming top-dog status in the government market.

Inside The GSEs

GSE Business Tumbles in May as Refi Well Goes Dry
Lenders delivered $149 billion of refinance loans into Fannie and Freddie MBS issued in May, down 29% from April. The GSEs also saw a 4% drop in deliveries of purchase-money mortgages. (Includes two data charts.)
Former Treasury Housing-Finance Czar Says GSEs Fully Reformed
Craig Phillips, senior counselor to Treasury Secretary Steven Mnuchin, recounts the Trump administration’s difficulties in ending the net worth sweep and the conservatorships.
More Inside The GSEs

After switching to remote work in response to the pandemic, many employed in the mortgage business aren’t showing a sense of urgency to return to offices. What’s your preference?