Latest News

For Citi, a Boom in First-Lien Originations
July 15, 2019
Citi’s strong showing is likely a harbinger of good news for the residential sector, especially since Citi uses predominantly retail/direct – with some correspondent – to produce loans. In the first quarter, the bank ranked 22^nd among all funders...
A Nice Market Share Increase for Freddie
July 15, 2019
Freddie Mac has long used a variety of tools to maintain a 40% share of GSE business, including discounted MBS guarantee fees and buying more of its own issuance. But one of the primary purposes of the uniform MBS program was to put the two GSEs on a more level playing field.
Are the States Out of Control When it Comes to Mortgage Servicing Rules?
July 15, 2019
“We believe the implementation of state-specific standards offered in the proposal would create consumer uncertainty, add additional costs and produce possible deviations from federal law,” wrote the trade groups.
Will Stearns' Ch. 11 Reorg Lead to a Merger?
July 15, 2019
According to figures compiled by Inside Mortgage Finance, the Santa Ana, CA-based Stearns ranked 21st among all home originators in the first quarter, while Finance of America, Horsham, PA, ranked 30th. Combined, the two would’ve been 15th...

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Sales
Nonbank Footprint in GSE Market Continues Growing
Nonbanks have increased their role in the selling and servicing of Fannie/Freddie mortgages. Nonbanks also sell somewhat riskier loans for which the GSEs are paid higher guarantee fees.
Repurchases
Low Seller Buybacks in 1Q19 Reflect Pristine Loan Quality
Lender buybacks of Fannie and Freddie mortgages remained at microscopic levels in early 2019, although there was a sharp increase in the pipeline of unresolved repurchase demands.
Originations
Nonbanks Gain Share in Soft 1Q19 Originations Market
The top five lenders had combined first-quarter production that was nearly even with the previous period, mostly because of substantially higher originations at Quicken and United Wholesale.
Ratings
Fitch Tops in Rating RMBS, S&P Still Rules ABS Sector
The share of unrated private placements of non-agency MBS fell sharply in the first quarter as Fitch edged into the lead.
ABS
CLO Market Slumped in 1Q19 as Refinances Tanked
Issuance of CLOs and CDOs fell 19% from the fourth quarter to the first quarter of 2019, largely due to a sharp decline in refinance transactions.
Programs & Policies
HECM Endorsements Increase in 1Q19
HECM endorsement volume rose in the first quarter of 2019 after three quarters of declining originations. FHA attributed the increase to the partial government shutdown that lasted 35 days, delaying HECM endorsements for part of the first quarter.

Inside Mortgage Finance

Agency Single-Family Mortgage Business Surges in 2Q19
Issuance of agency MBS during April-June rose 43% from the first quarter of the year, with gains posted across the board. Combined issuance by Fan-nie Mae, Freddie Mac and Ginnie Mae hit $330.65 billion.
Trade Groups Critical of New FHA Certification Proposal
Lenders are seeking significant revisions to FHA loan-level certifications and defect taxonomy in order to increase participation. Banks fled the FHA market following the financial crisis due to the False Claims Act cases brought against them by the Justice Department.
- Stearns Calls it a ‘Reorg,’ But Will Ch. 11 Lead to a Merger?
- Lending Practices Linked to Judicial Foreclosure Norms
More Inside Mortgage Finance

Inside MBS & ABS

New MBS and ABS Issuance Rebounds Strongly in 2Q19
July 11, 2019
Volume rose sharply from the first quarter in the major product categories, although the non-agency MBS market was soft.
Refi Wave Helps Lift Agency Single-Family Volume in 2Q19
July 11, 2019
Ginnie Mae saw a huge increase in rate-term refinance business, but the cash-out market also gained ground. Freddie led its rivals in attracting more first-time buyer business.
Whole-Business ABS Issuance on Track for Record Year
July 11, 2019
Issuance of whole-business ABS is on track to break a record this year, with $4.6 billion in volume at halfway mark. Issuers include fast food companies, aftermarket car services and spa services.
GSE 2Q19 Earnings Preview: A Case of Good/Bad News
July 11, 2019
Declining interest rates helped fuel a securitization boom at Fannie and Freddie in the second quarter. However, falling rates will force writedowns tied to derivatives.

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Poll

Inside Nonconforming Markets

Expanded-Credit MBS Issuance Slows in 2Q18
July 3, 2019
Issuance of expanded-credit MBS slowed somewhat in the second quarter but volume through the first half of the year more than doubled that seen in the first half of 2018. The sector remains hotter than the prime non-agency MBS market.
Prime Non-Agency MBS Issuance Down in 2Q
July 3, 2019
Issuance of prime non-agency MBS declined in the second quarter on a sequential basis, led by a drop in the volume of GSE-eligible loans going into the non-agency market. Only a handful of issuers were active in the second quarter.
Fresh Calls for Non-Agency MBS Standardization
July 3, 2019
Federal regulators should provide incentives for non-agency MBS issuers to standardize deal features, according to Annaly and Barclays. The firms detailed various changes that could help increase issuance.
Fitch Remains Cautious About Alt Doc Loans in MBS
July 3, 2019
The rating service will continue to take a relatively harsh view of mortgages underwritten with alternative documentation even though they have per-formed better than expected.

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Videos

Inside Mortgage Trends

Wholesale-Broker Share of Agency Market Up in 2Q19
July 12, 2019
Mortgage brokers accounted for a record 14.8% of single-family business in the agency MBS market during the second quarter. Credit trends suggest sellers may have focused on the low-hanging fruit as production volume ramped up significantly.
California Top Market for Mortgage Insurance in 2Q19
July 12, 2019
California remained the largest source of insured home loans securitized by Fannie, Freddie and Ginnie in the second quarter, and it had relatively large concentrations of FHA and VA mortgages.
Interest Rates Remain Low but Mortgage Hiring Tepid
July 12, 2019
Originations are strong in many markets but hiring by mortgage banking firms is not particularly robust. Meanwhile, some executives wonder privately whether the rate rally is getting long in the tooth.
Liquidity a Better Predictor of Default than LTV, DTI
July 12, 2019
A borrower’s liquidity situation seems to be a better indicator of potential default than LTV or DTI ratios, according to the JPMorgan Chase Institute. The institute suggests that the use of emergency mortgage reserve accounts could help alter the DTI ratio standards for qualified mortgages.

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Inside FHA/VA Lending

GNMA MBS Issuance Firing on All Cylinders in 2Q19
Robust homebuying activity brought a huge increase in purchase mortgages into the Ginnie Mae MBS program in the second quarter. Rate-term refinance activity was up sharply.
Congress Eliminates Cap on VA Home Loans
Congress withdrew a provision in the Blue Water Navy Vietnam Veterans Act that would have raised the guarantee fee on VA home loans. Instead, it approved the removal of the cap on VA mortgages.
Quicken's FHA Settlement a Major Victory and a 'Credit Positive'
Resolution of the Quicken-FHA lawsuit is credit positive for the lender as it removes uncertainty arising from prolonged litigation.
Ginnie Reinstates loanDepot In Multi-Issuer MBS Program
The agency has lifted a suspension of loanDepot from its multi-issuer securities program, noting the nonbank’s prepayment speeds on VA loans have normalized and are strictly being monitored.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Wholesale-Broker Share of Agency Market Up in 2Q19
Mortgage brokers accounted for a record 14.8% of single-family business in the agency MBS market during the second quarter. Credit trends suggest sellers may have focused on the low-hanging fruit as production volume ramped up significantly.
Inside Mortgage Finance
Agency Single-Family Mortgage Business Surges in 2Q19
Issuance of agency MBS during April-June rose 43% from the first quarter of the year, with gains posted across the board. Combined issuance by Fan-nie Mae, Freddie Mac and Ginnie Mae hit $330.65 billion.
Inside Nonconforming Markets
Expanded-Credit MBS Issuance Slows in 2Q18
Issuance of expanded-credit MBS slowed somewhat in the second quarter but volume through the first half of the year more than doubled that seen in the first half of 2018. The sector remains hotter than the prime non-agency MBS market.
Inside MBS & ABS
New MBS and ABS Issuance Rebounds Strongly in 2Q19
Volume rose sharply from the first quarter in the major product categories, although the non-agency MBS market was soft.
Inside the CFPB
Shift in Enforcement Activity Under Kraninger
There has been a huge decline in enforcement actions and civil money penalties imposed by the CFPB in the first six months of 2019. What does this say about the bureau’s enforcement trend?
Inside The GSEs
Freddie Gains Share in 2Q19, Especially with Depositories
Freddie Mac saw its share of new MBS issuance climb to 48.5% in the second quarter, though heavy lender sales of seasoned loans accounted for some of the gain.
Inside FHA/VA Lending
GNMA MBS Issuance Firing on All Cylinders in 2Q19
Robust homebuying activity brought a huge increase in purchase mortgages into the Ginnie Mae MBS program in the second quarter. Rate-term refinance activity was up sharply.

Inside The GSEs

Freddie Gains Share in 2Q19, Especially with Depositories
Freddie Mac saw its share of new MBS issuance climb to 48.5% in the second quarter, though heavy lender sales of seasoned loans accounted for some of the gain.
FHFA Reverses Course on the For-Cause Provision
Director Mark Calabria’s decision to reverse former acting Director Joseph Otting’s reversal of a Mel Watt-era decision to defend the constitutionality of the FHFA structure catches GSE observers by surprise.
More Inside The GSEs