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GSE Credit-Risk Transfers Down Significantly in 2Q19
August 20, 2019
Fannie Mae and Freddie Mac acquired $2.83 billion of reinsurance coverage through the first six months of the year, down 29.9% from the same period in 2018.
More Ocwen Insiders Buy Shares in the Open Market
August 20, 2019
Generally, it’s a bullish sign when executives purchase shares of their companies in the open market, especially if they’re paying cash as opposed to buying on margin.
The Secret Sauce of Non-QM Liquidity: Mortgage REITs
August 20, 2019
CEO Craig Knutson: “MFA’s reputation as a reliable buyer of residential whole loans and dependable capital partner has enabled us to source significant volume of whole loans, including transactions with limited competition.”
The Stock Market is Gyrating but Mortgage REITs Keep Issuing Additional Shares
August 20, 2019
The issuer list encompasses an array of public “mREITs,” including two of the largest players in the MBS-investing market…

FHA
Strong Refinance Demand Propels FHA, VA 2Q Production
Fueled by low rates, demand for FHA and VA refis was strong in the second quarter, although purchase loan originations for both programs hit the ceiling as well.
Originations
Large Share of GSE Business Outside of ‘Core’ Functions
More than half of the dollar volume of mortgages securitized by the GSEs in 2018 was backed by noncore loans, according to a new analysis by Inside Nonconforming Markets.
Agency MBS
Agency MBS Issuance Soars in July, Purchase Loans Up
Mortgage lenders delivered $85.5 billion of purchase loans to Fannie, Freddie and Ginnie MBS platforms in July, the highest monthly volume in years.
Mortgage Insurance
Primary MI Volume Soars in 2Q19; Private MI Share Up
Private mortgage insurers came close to setting an all-time record for new business written through traditional flow transactions during the second quarter. FHA and VA also posted hefty gains from the first quarter.
Agency MBS
Freddie Chips Away at Fannie’s MSR Market Share
Fannie still accounted for nearly 62% of GSE single-family servicing out-standing at the end of June, but Freddie has been growing its business more quickly.
Servicing
Agency MSR Transfers Heat Up in Second Quarter 2019
A large bank merger and Wells Fargo’s move to unload Ginnie Mae servicing played key roles in the surge of bulk MSR transfers during the second quarter.

Inside Mortgage Finance

2Q19 Yields Big Gains in All Products, But ECM Lagged
Jumbo lending increased by 67.2% from the first quarter of 2019 to the second, faster than any other product category. Expanded-credit lending had the slowest growth rate.
Ocwen Loses Money Yet Again. Can it Survive Long-Term?
Ocwen Financial posted another losing quarter, with new challenges: De-clining interest rates and a massive amount of debt coming due.
- OCC May Block CRA Credit on Loans to the Wealthy
- Final Rule on Credit Score Models
More Inside Mortgage Finance

Inside MBS & ABS

Mortgage REITs Up Agency MBS Holdings Again in 2Q19
August 15, 2019
A group of 15 top mortgage REITs increased its agency MBS portfolio by $20.9 billion during the second quarter of 2019, although non-agency MBS investment slipped modestly.
GSE Credit-Risk Transfer Deals Slowed in 2Q. However…
August 15, 2019
New issuance of credit-risk debt notes by the GSEs fell 25.5% sequentially in the second quarter, but surging MBS production in recent months will likely spur increased CRT activity in the second half of the year.
Stock Market is Unpredictable, but REITs Keep Issuing New Shares
August 15, 2019
Mortgage-investing REITs continue to tap the equities market. And it’s occurring at an odd time: The Dow Jones Industrial Average is gyrating like a drunken puppet.
Demand for Non-Agency MBS Sparks Innovation
August 15, 2019
Noting strong demand for non-agency MBS, issuers are getting creative with the types of loans they package into deals. JPMorgan, Credit Suisse, Angelo Gordon and Goldman Sachs are all entering new sectors.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Non-Agency Jumbo Originations Surged in the Second Quarter
August 16, 2019
Originations of non-agency jumbo mortgages increased in the second quarter, spurred by low interest rates. The sector gained market share and some lenders said pipelines were strong heading into 3Q19.
REITs Lapping Up Non-QMs
August 16, 2019
Several real estate investment trusts, including MFA Financial and Starwood Property Trust, are expanding their portfolio of non-qualified mortgages. The loans provide attractive returns, whether retained or bundled into an MBS.
Annaly, Chimera Seeing Benefits of Non-Agency MBS
August 16, 2019
Annaly and Chimera are generating strong returns aggregating mortgages, issuing non-agency MBS and retaining subordinate tranches from the deals. Chimera plans to be a regular issuer of non-agency MBS with GSE-eligible loans.
Quicken Tops Prime Non-Agency MBS Contributors in 2Q
August 16, 2019
Quicken increased its contributions to prime non-agency MBS this year, including $619 million of loans going into deals issued in the second quarter. Characteristics of the deals were largely unchanged.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

GSE Credit Scores Trend Higher, LTV Ratios Rising
August 9, 2019
Some 12.9% of purchase loans sold to Fannie and Freddie in the second quarter had credit scores ranging from 620 to 699, the highest such concentration on record. But loans with high credit scores accounted for a rising share of GSE refi business.
Nonbanks Struggle with MSR Volatility in 2Q19
August 9, 2019
Seven publicly held nonbanks reported a combined loss of $47.8 million on their mortgage banking operations in the second quarter as interest rate volatility hammered their servicing books.
Originations Rise But Hiring By Mortgage Firms Tepid
August 9, 2019
Originations are booming but the government’s latest reading on mortgage employment wasn’t exactly encouraging. Still, interviews conducted by Inside Mortgage Trends reveal that many shops are looking to hire.
Banks Among the Fastest-Growing Lenders in 2Q19
August 9, 2019
TD Bank was the top volume gainer among residential lenders in the second quarter but barely made the top 50 volume ranking in the first half of the year. Moral of story: the bigger you are, the harder it is to post huge percentage gains.

More Inside Mortgage Trends

Inside FHA/VA Lending

Wholesale Channel Gallops to Bigger GNMA Share
The volume of broker-originated FHA and VA refinance loans pooled in new Ginnie MBS jumped 94.1% from the first to the second quarter. Correspondent production saw the smallest gains among the three channels.
Ginnie 1-Family MBS Surges to Four-Year High in July
Purchase loans still accounted for over two-thirds of Ginnie loan deliveries, but the volume of incoming refinance loans had a slightly higher increase from June.
Final Condo Financing Rules
HUD’s final rules on condo projects allow certain condo units to be eligible for FHA-insured loans even if the project is not FHA approved.
Lenders Don’t Need Prior Approval to Cure IRRRLs
Lenders don’t need prior VA approval to cure IRRRLs that do not meet certain standards as long as it doesn’t increase loan costs.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
GSE Credit Scores Trend Higher, LTV Ratios Rising
Some 12.9% of purchase loans sold to Fannie and Freddie in the second quarter had credit scores ranging from 620 to 699, the highest such concentration on record. But loans with high credit scores accounted for a rising share of GSE refi business.
Inside Mortgage Finance
2Q19 Yields Big Gains in All Products, But ECM Lagged
Jumbo lending increased by 67.2% from the first quarter of 2019 to the second, faster than any other product category. Expanded-credit lending had the slowest growth rate.
Inside Nonconforming Markets
Non-Agency Jumbo Originations Surged in the Second Quarter
Originations of non-agency jumbo mortgages increased in the second quarter, spurred by low interest rates. The sector gained market share and some lenders said pipelines were strong heading into 3Q19.
Inside MBS & ABS
Mortgage REITs Up Agency MBS Holdings Again in 2Q19
A group of 15 top mortgage REITs increased its agency MBS portfolio by $20.9 billion during the second quarter of 2019, although non-agency MBS investment slipped modestly.
Inside the CFPB
Industry Mulls Transition as End of QM ‘Patch’ Nears
As the initial anxiety over the CFPB’s plan to end the qualified mortgage “patch” fades, mortgage industry participants are assessing their options.
Inside The GSEs
Fannie/Freddie 2Q19 Profits Down
Fannie and Freddie reported lower combined comprehensive income in the second quarter compared with a year ago. While net interest income and non-interest income declined, expenses shot up.
Inside FHA/VA Lending
Wholesale Channel Gallops to Bigger GNMA Share
The volume of broker-originated FHA and VA refinance loans pooled in new Ginnie MBS jumped 94.1% from the first to the second quarter. Correspondent production saw the smallest gains among the three channels.

Inside The GSEs

Fannie/Freddie 2Q19 Profits Down
Fannie and Freddie reported lower combined comprehensive income in the second quarter compared with a year ago. While net interest income and non-interest income declined, expenses shot up.
Fannie Sees Bigger Gains in July Business than Freddie
Both GSEs posted their highest monthly volume of single-family MBS issuance since January 2017. Purchase-mortgage and refinance business rose significantly.
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?