Latest News

Mortgage Bellyaching Plunges to Record Low in 4Q19
January 22, 2020
For the full year of 2019, total mortgage complaints from end users were down 9.1%...
Radian Sells Due Diligence Unit Clayton – At a Loss
January 22, 2020
Radian bought Clayton in 2014, paying a hefty $305 million for the business, a price that many observers thought was a bit rich.
Slip Sliding Away: Megabanks’ Share of the GSE Servicing Pie
January 22, 2020
Then again, not all banks are pulling back from agency servicing…
Invictus Set to Issue its Largest Expanded-Credit MBS Ever
January 22, 2020
The $699.2 million expanded-credit security tops a $681.0 million deal Invictus issued in October.

Characteristics
GSE Business Profile Turns More Risk-Averse in 4Q19
The FHFA has been pushing Fannie and Freddie to reduce the risk profile of the loans they acquire, and that effort appears to be taking hold as the share of high-risk new business fell drastically in the fourth quarter. (Includes two data charts.)
Issuance
Strong 4Q19 Lifts GSE MBS Production Over $1 Trillion
Fannie and Freddie in 2019 topped the $1 trillion mark for the first time since 2013 thanks to an unexpected surge of refinance business in the second half of the year. (Includes two data charts.)
Agency MBS
Agency MBS Push Structured Finance Over $2T in 2019
Total new issuance of securities backed by home loans, commercial mortgages and non-mortgage assets jumped 24% from 2018’s levels to $2.14 trillion last year, the biggest volume since 2007. (Includes three data charts.)
MBS
Refi Boom Pushes Agency Business to Six-Year High
Fannie Mae, Freddie Mac and Ginnie Mae all recorded big gains in refinance business in 2019, driving their combined MBS production to over $1.5 trillion. (Includes two data charts.)
Portfolios
Bank First-Lien Holdings Increase in Third Quarter
First-lien holdings increased in the third quarter but Chase stood out among big banks as it sold mortgages and acquired MBS. First Republic slowed its mortgage sales and boosted its portfolio. (Includes data chart.)
ABS
ABS Issuance Fades in 4Q19, But 2019 Hits 11-Year High
Vehicle-finance transactions and ABS backed by a variety of business-finance assets were the mainstays in 2019’s modest increase in new issuance. Consumer-finance deals saw significant growth but accounted for just 6% of the market. (Includes two data charts.)

Inside Mortgage Finance

Private MIs See Explosion of Refis, Gain in Purchase Loans
Fannie Mae, Freddie Mac and Ginnie Mae securitized $819 billion of insured loans in 2019, up 20% from the previous year. Insured agency refi business soared by 120% from 2018.
Preliminary Results Suggest a Lending Boom in 4Q19
Some of the largest home lenders reported fourth-quarter results this week and the writing is on the wall: Home lending in the final three months of the year may have eclipsed a very good third quarter.
- Calabria Raises SIFI Concerns for Nonbanks
- Best Performing Mortgage Stocks in 2019? The GSEs, Of Course
More Inside Mortgage Finance

Inside MBS & ABS

4Q Non-Agency MBS Rally Lifts 2019 to Post-Crisis High
January 16, 2020
Deals backed by seasoned loans still accounted for over half of last year’s non-agency MBS issuance, but securitization of newly originated prime and expanded-credit mortgages more than doubled in 2019.
In the Secondary Market, Non-QM Prices Get Frothy
January 16, 2020
Secondary market investors, especially hedge funds and private equity firms, are bidding up the price of non-qualified mortgages. That’s good news for sellers, but can it last?
Non-Agency MBS Issuance Picks up After Holidays
January 16, 2020
Six non-agency MBS backed by newly-originated mortgages have been introduced since the beginning of the year. Issuance is ramping up after a slow December.
CSS Board Shakeup Gives FHFA More Direct Control
January 16, 2020
The move gives the regulator more direct control over Common Securitization Solutions, which is responsible for issuing and administering the uniform MBS.

More Inside MBS & ABS

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Inside Nonconforming Markets

Expanded-Credit Loans Drive Increase in Non-Agency MBS
January 10, 2020
Issuance of non-agency MBS increased by nearly 50% on an annual basis in 2019, largely due to expanded-credit mortgages. (Includes data chart.)
Prime Non-Agency MBS Issuance Expected to Increase in 2020
January 10, 2020
Issuance of prime non-agency MBS will likely increase this year, according to projections by industry analysts. The big wildcard is how FHFA’s efforts to reduce the GSEs’ footprint will impact the non-agency market.
Velocity Financial Plans $100 Million IPO
January 10, 2020
The lender plans to raise around $100 million through an initial public offering of shares. Velocity funded about $1.0 billion of originations in 2019, focused on residential investment and small commercial properties.
Handful of Expanded-Credit MBS Incur Losses
January 10, 2020
At least eight expanded-credit MBS rated by DBRS Morningstar suffered losses in the second half of 2019. Investors, though, were protected due to high credit enhancement levels.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Nonbank Share in Agency Market Reaches New High
January 17, 2020
Only two banks ranked among the top 10 agency sellers in 2019, while six of their nonbank peers posted significant increases from the third to the fourth quarter. (Includes two data charts.)
Conventional NBs Can’t Go Public but Nonprime Firms Can (Now)
January 17, 2020
Velocity Financial went public on Friday, a somewhat rare event for a nonbank lender and an even rarer happening for a nonprime shop. That said, are more deals on the way?
California Tops in Agency Purchase Loans in 2019
January 17, 2020
The Golden State had the largest volume of purchase loans sold to Fannie, Freddie and Ginnie, but it lagged other states in growth rates. (Includes two data charts.)
Mortgage Hiring Slows a Bit but the Desire is There
January 17, 2020
A new reading on mortgage employment from the federal government was barely positive but interviews conducted by Inside Mortgage Trends suggests that plenty of lenders need workers.

More Inside Mortgage Trends

Inside FHA/VA Lending

Ginnie MBS Issuance Hits New Annual Record in 2019
A gusher of refinance loans over the second half of the year pushed Ginnie MBS production to a record $498 billion in 2019, up 28% from the previous year. (Includes four data charts.)
Stakeholders Doubt Effectiveness of Revised Defect Taxonomy
The revised defect taxonomy will hardly nudge banks to return to or increase participation in FHA programs despite tighter standards for identifying and curing defective loans, according to industry stakeholders.
FHA Footprint in High-Risk Market May Grow in 2020
In 2020, FHA is poised to take a significant chunk of high-risk business as Fannie and Freddie continue to draw back from the over-95% LTV market. VA is expected to continue its slow-growth trajectory.
HUD Feels the Heat from Congress, Tribes on DPA
A bipartisan group of House lawmakers sent a letter urging HUD to engage with Native American tribes before formulating any rulemaking, such as on downpayment assistance, that would impact tribal organizations.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Nonbank Share in Agency Market Reaches New High
Only two banks ranked among the top 10 agency sellers in 2019, while six of their nonbank peers posted significant increases from the third to the fourth quarter. (Includes two data charts.)
Inside Mortgage Finance
Private MIs See Explosion of Refis, Gain in Purchase Loans
Fannie Mae, Freddie Mac and Ginnie Mae securitized $819 billion of insured loans in 2019, up 20% from the previous year. Insured agency refi business soared by 120% from 2018.
Inside Nonconforming Markets
Expanded-Credit Loans Drive Increase in Non-Agency MBS
Issuance of non-agency MBS increased by nearly 50% on an annual basis in 2019, largely due to expanded-credit mortgages. (Includes data chart.)
Inside MBS & ABS
4Q Non-Agency MBS Rally Lifts 2019 to Post-Crisis High
Deals backed by seasoned loans still accounted for over half of last year’s non-agency MBS issuance, but securitization of newly originated prime and expanded-credit mortgages more than doubled in 2019.
Inside the CFPB
Kraninger Letter Assures ‘GSE Patch’ will be Extended
Loans that qualify for purchase by the GSEs will continue to be exempt from the 43% debt-to-income ratio cap. This development was not unexpected. In July, the CFPB said it would consider a short extension.
Inside The GSEs
Nonbanks Continue to Grow Share of GSE Servicing in 4Q19
Most of the decline in bank GSE servicing was recorded at Wells Fargo, Chase and Bank of America. Big nonbank gainers included NewRez, Quick-en, Matrix Financial and PennyMac. (Includes two data charts.)
Inside FHA/VA Lending
Ginnie MBS Issuance Hits New Annual Record in 2019
A gusher of refinance loans over the second half of the year pushed Ginnie MBS production to a record $498 billion in 2019, up 28% from the previous year. (Includes four data charts.)

Inside The GSEs

Nonbanks Continue to Grow Share of GSE Servicing in 4Q19
Most of the decline in bank GSE servicing was recorded at Wells Fargo, Chase and Bank of America. Big nonbank gainers included NewRez, Quick-en, Matrix Financial and PennyMac. (Includes two data charts.)
Calabria Weighs In on FSOC, Nonbank Risk and More
One of the key jobs of the Financial Stability Oversight Council is to make suggestions and recommendations to regulators to avoid SIFI designations, the FHFA director said.
More Inside The GSEs

With rates staying low and refis at a decent clip, what are your hiring plans for the rest of 2019?