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What We’re Hearing: Quicken Settles FHA Case with Uncle Sam / Ditech’s Unsecured Creditors (Pain) / GSE Irony 101 / Interest Rates Falling: Watch Out Below / Called Home Early / MSR Carnage? / Getting Well / The Most Cyclical Business in the Universe
June 14, 2019
Quicken Loans signed a $32.5 million agreement with the federal government to settle FHA underwriting allegations that accused the nation’s largest direct lender w...
Slip, Sliding Away: the Fed’s Role in the MBS Market
June 14, 2019
Commercial banks held a combined $1.673 trillion of MBS at the end of the first quarter, maintaining their position as the largest investor class in the market...
FHFA Working with GSEs to Improve Counterparty Risk (Nonbanks)
June 14, 2019
Mark Calabria of the FHFA: “But from a risk perspective there are some key differences between banks and non-banks that we need to address in a responsible way. Prudent, sustainable risk management...
A Post-Crisis First: An MBS Backed by HELOCs (That’s Right, HELOCs)
June 14, 2019
The collateral consists of 1,732 seasoned performing HELOCs totaling $277.7 million of outstanding draws. The lines have seasoned for an average of 5.5 years...

Fannie Mae
California Still the Mother Lode of GSE Market in 1Q19
The Golden State's high concentration of broker loans and refinancing is reflected in its top two sellers: United Wholesale Mortgage and Quicken Loans.
Banks Retreat a Little More From SFO, Values Soften
While banks overall reduced their servicing for others, Chase, Flagstar, M&T and MUFG Union Bank all built up their portfolios in the first quarter.
Earnings
Production Profits Rebound in 1Q19, Servicing Also Up
Most of the gain in production income occurred at JPMorgan Chase, which reversed an unusual loss in the fourth quarter. Wells Fargo accounts for most of the increase in servicing profits.
Agency Refi Market Gains Momentum in May MBS
Fannie posted the biggest increase over April MBS volume, while Freddie lagged behind. Purchase-mortgage business is on track for another annual climb.
Originations
Agency Jumbo Production Off Sharply, Non-agency Steady
Some of the sharp drop in non-agency jumbo securitization resulted from higher loan limits, but volume was buoyed by a large pool of seasoned loans sold to Freddie Mac.
Refis Up Sharply in 1Q19, But Purchase Market Dominates
Most of the 20% surge in refinance business likely came from rate-term trans-actions rather than cash-out deals. First-timers held up slightly better than re-peat buyers.

Inside Mortgage Finance

Heavy Refi Activity Hurts Home-Equity Sector in 1Q19
Home-equity lending fell 15% in the first quarter of 2019 as the total supply of HEL debt outstanding continued to shrink. Heavy cash-out refinancing was a factor.
Ginnie Open to Non-Traditional MSR Ownership. Can the GSEs Be Next?
It's no secret that Ginnie Mae officials are losing sleep over nonbanks dominating the government MBS market. With liquidity a primary concern, the agency is ready to consider "non-traditional" investors in its MSRs. But there's a catch: They may have to commit as much as $1 billion.
- FHFA Forecasts Reduced Earnings for Fannie, Freddie
- Growth Slows in the Subservicing Arena as Consolidation Looms
More Inside Mortgage Finance

Inside MBS & ABS

MBS Investors Step Up to Fill Central Bank’s Fading Role
June 13, 2019
The Federal Reserve reduced its holdings of agency MBS by $47 billion during the first quarter, but several other investor groups picked up the slack. Total MBS outstanding grew 0.4% during the first three...
Non-QM and Prime Non-Agency MBS Markets Diverge
June 13, 2019
Issuance of MBS backed by non-QMs remains healthy while prime non-agency MBS activity has slowed.
MBS Trading Hits Annual Low. Fear on Prepayment Front
June 13, 2019
Agency MBS trading hit a yearly low in May. What lies ahead will be determined by the Federal Reserve. Will the central bank ease credit? And if so, what will happen to MBS prepayments?
Self-Storage Share of Commercial MBS Increasing
June 13, 2019
The share of self-storage loans in commercial MBS is increasing, raising concerns from investors. The loans are performing well, though.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Jumbo Correspondent Lending Share Down in 1Q
June 7, 2019
The correspondent share of jumbo originations declined in the first quarter of 2019 after reaching relatively high levels in the second half of 2018. The retail channel remained the main source of p...
Non-Agency Players See Promise at End of the GSE 'Patch'
June 7, 2019
Participants in the non-agency market are looking forward to the end of the “GSE patch,” anticipating significant increases in non-QM activity as long as federal regulators provide certainty regarding the r...
Loans from CDFI Lender Shake up Non-QM MBS
June 7, 2019
An affiliate of Angelo Gordon is set to issue its first non-QM MBS with what could be a trend-setter: many of the loans were originated by a CDFI. Such loans are exempt from the ATR and risk-retention st...
Lenders, Investors Have Mixed Views on Fix-and-Flip Market
June 7, 2019
Fix-and-flip loans are offering attractive returns to some non-agency players even as others are reducing their exposure to the market, citing concerns about slowing home-price appreciation.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Broker Channel Expanding in All Major Mortgage Products
June 14, 2019
Broker originations accounted for a growing share of first-quarter production in all three major mortgage products. United Wholesale accounted for the channel's growth.
Mortgage Banking Earnings Weak Again in Early 2019
June 14, 2019
The average firm posted a pretax net loss of $214,000 loss in the first quarter. Retail-focused lenders and independent mortgage bankers fared relatively better.
Banks Retreat a Little More From SFO, Values Soften
June 14, 2019
While banks overall reduced their servicing for others, Chase, Flagstar, M&T and MUFG Union Bank all built up their portfolios in the first quarter.
Google a Better Gauge of Refi Applications than MBA Survey?
June 14, 2019
Some industry participants are questioning the accuracy of the MBA’s refinance application index, suggesting that Google search trends are a better gauge.

More Inside Mortgage Trends

Inside FHA/VA Lending

Ginnie MBS Issuance Sprouts as Purchase and Refi Boom
The purchase-mortgage and refinance sectors saw nearly identical gains in Ginnie volume last month, with most of the refi increase in rate-term transactions.
Industry Divided over Cash-Out Refi Proposal
Ginnie Mae's request for comment on proposed changes to pooling requirements for higher-risk VA cash-out refinance loans is generating mixed views from stakeholders.
MBA Seeks Delay of Loan Application Form
The trade group has asked FHFA to standardize and delay implementation of the redesigned standard loan application form, saying lenders might not be ready.
Options to Make HECM Program Less Costly
Reports from the Congressional Budget Office and the Urban Institute analyze various ways to lower the government’s cost of running and maintaining the Home Equity Mortgage Program for cash-strapped, equity...

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Broker Channel Expanding in All Major Mortgage Products
Broker originations accounted for a growing share of first-quarter production in all three major mortgage products. United Wholesale accounted for the channel's growth.
Inside Mortgage Finance
Heavy Refi Activity Hurts Home-Equity Sector in 1Q19
Home-equity lending fell 15% in the first quarter of 2019 as the total supply of HEL debt outstanding continued to shrink. Heavy cash-out refinancing was a factor.
Inside Nonconforming Markets
Jumbo Correspondent Lending Share Down in 1Q
The correspondent share of jumbo originations declined in the first quarter of 2019 after reaching relatively high levels in the second half of 2018. The retail channel remained the main source of production...
Inside MBS & ABS
MBS Investors Step Up to Fill Central Bank’s Fading Role
The Federal Reserve reduced its holdings of agency MBS by $47 billion during the first quarter, but several other investor groups picked up the slack. Total MBS outstanding grew 0.4% during the first three months of...
Inside the CFPB
CFPB to Soon Decide the Fate of its ‘QM Patch’
The bureau has turned its attention toward steps needed to address the “GSE patch” along with other changes to its rulemaking activity. But it has not indicated the approach it is considering.
Inside The GSEs
Refi Surge Boosts GSE MBS in May, Market Share Steady
Fannie's MBS issuance was up significantly from April to May while Freddie posted a smaller monthly gain. Purchase mortgages and refinancing both rose substantially.
Inside FHA/VA Lending
Ginnie MBS Issuance Sprouts as Purchase and Refi Boom
The purchase-mortgage and refinance sectors saw nearly identical gains in Ginnie volume last month, with most of the refi increase in rate-term transactions.

Inside The GSEs

Refi Surge Boosts GSE MBS in May, Market Share Steady
Fannie's MBS issuance was up significantly from April to May while Freddie posted a smaller monthly gain. Purchase mortgages and refinancing both rose substantially.
Raymond James Says GSE IPOs Will Take a While
Industry insiders disagree on how long it would take for Fannie and Freddie to go public. A Raymond James report says it will take three to four years, while others say it depends on the plan.
More Inside The GSEs

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