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Jumbo Originations Increase in Second Quarter
September 6, 2024
Originations of both non-agency and conforming jumbos were up in the second quarter of this year.
Investors Showing Strong Demand for Home Equity Loans
September 6, 2024
“The potential for growth of the sector is massive,” said Sainadh Polisetty, a senior vice president of investments at One William Street Capital Management.
Non-Agency MBS Issuance Picks Up Momentum
September 6, 2024
MFA Financial, Rithm Capital and Annaly Capital Management all started marketing new non-agency or jumbo MBS deals this week.
MBS Investors Benefitting From Decline in Interest Rate Volatility
September 6, 2024
Analysts predict that a rate cut later this month could be as high as 50 basis points.

Earnings
Nonbank Mortgage Earnings Sag in Second Quarter
Most lenders reported rising production volume, but shrinking margins ate into bottom-line profitability. Servicing results depended on how successful the firms were in hedging MSR. (Includes data table.)
Servicing
Bank Mortgage Servicing for Others Declines in 2Q
JPMorgan Chase remained the largest bank in terms of servicing for others and increased its volume in the second quarter, a feat managed by only one other bank in the top 10. (Includes data table.)
Investors
Bank MBS Holdings Down Slightly, Shift to Ginnie
Wells Fargo moved deeper into Ginnie Mae pass-throughs while JPMorgan Chase upped its holdings of GSE pass-throughs. Bank of America, Charles Schwab and U.S. Bank all reduced their MBS holdings in the second quarter. (Includes two data tables.)
Originations
Government-Insured Sector Loses Share in Second Quarter
Originations increased across mortgage products in the second quarter. The conventional-conforming sector’s market share held steady while government-insured lending lost some share. (Includes data tables.)
Servicing
Early-Stage Delinquencies Increase in Second Quarter
The mortgage delinquency rate is rising in tandem with the unemployment rate. While early-stage delinquencies are growing, borrowers are largely avoiding foreclosure thanks to home equity and loss mitigation. (Includes data tables.)
Jumbo
Jumbo Lending Surges in Second Quarter
Originations of non-agency jumbo mortgages increased by nearly 60% on a sequential basis in the second quarter. (Includes data table.)

Inside Mortgage Finance

Jumbo Mortgages Gain Market Share in Second Quarter
Originations of both non-agency and conforming jumbo mortgages increased in the second quarter. Combined, they accounted for 16.1% of first-lien originations. Meanwhile, home price appreciation is slowing. (Includes three data tables.)
Anticipated Cut in Interest Rates by Fed Getting Closer
The Federal Reserve is widely expected to reduce the federal funds rate on Sept. 18. The initial rate cut is already priced in to mortgage rates.
- NAR Settlement Causes Early Confusion for Homebuyers
- IPO Window for Nonbank Mortgage Companies Could Reopen
More Inside Mortgage Finance

Inside MBS & ABS

Refi Uptick Helps Drive an Increase in Agency MBS
September 5, 2024
Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
MBS Investors Prepare for Lower Interest Rates
September 5, 2024
The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.
REITs Boost MBS Holdings in 2Q24, Focus on Agency
September 5, 2024
AGNC Investment gained some ground on REIT-leader Annaly Capital Management in the agency MBS sector. Industry holdings of non-agency MBS and whole loans fell in the second quarter. (Includes two data tables.)
Might Non-QM MBS be Next for Radian’s Conduit?
September 5, 2024
Radian Mortgage Capital hopes to issue jumbo MBS every quarter starting next year. It is also eyeing non-QM issuance.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Nonprime Servicing Volume Flat in 2Q
August 30, 2024
Overall nonprime mortgage servicing portfolios remained steady in the second quarter despite some sizeable increases at some servicers. (Includes data table.)
Investors Eye Non-QM Loans for Portfolio Diversification
August 30, 2024
Strong returns post-2008 have led investors to increasingly consider non-qualified mortgage loans for their portfolios.
Non-QM Market Remains Untapped for Many LOs
August 30, 2024
Investor demand for non-QMs is outpacing originator production, according to industry experts who spoke last week at the California MBA western secondary market conference.
MBA Economist Expects Growth in New Construction Loans
August 30, 2024
Michael Fratantoni, chief economist and senior vice president of research and industry technology at the Mortgage Bankers Association, forecast a growth in new construction loans in the coming year.

More Inside Nonconforming Markets

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Inside Mortgage Trends

Gain in Production Income Offsets 2Q24 Servicing Drag
September 6, 2024
Improving efficiency played a big role in boosting mortgage-banking profits in the second quarter as gain-on-sale margins narrowed while servicing took a hit on net MSR valuation. (Includes data table.)
Mortgage-Banking Income at Banks Up Slightly in 2Q24
September 6, 2024
Trends varied significantly among banks and thrifts, with five of the top 10 reporting declines in mortgage-banking income during the second quarter. (Includes data table.)
Bank Repurchases Down Sharply in Second Quarter
September 6, 2024
Mortgage repurchases by banks and thrifts during the second quarter were the lowest since before the 2008 financial crisis, according to a new Inside Mortgage Trends analysis of call-report data. (Includes data table.)
Implementing AI in the Mortgage Space
September 6, 2024
One reason companies should formally adopt generative AI is that three-quarters of employees say they already use ChatGPT or one of its competitors in the workplace.

More Inside Mortgage Trends

Inside FHA/VA Lending

HECM Production Increases in the Second Quarter
New FHA home equity conversion mortgage endorsements increased 10.8% from the first quarter to the second. Year-to-date, though, volume was down from the first six months of 2023. (Includes three data tables.)
Industry Seeks More Time to Implement VASP Program
The Mortgage Bankers Association and the Housing Policy Center have urged VA to extend the deadline to implement the Veterans Affairs Servicing Purchase loss-mitigation program though Dec. 31.
Industry Stakeholders Seek Details on Harris’ DPA Plan
Some questioned whether the proposed $25,000 downpayment assistance to first-time homebuyers would be enough in some housing markets.
UI Expands on FSOC Report on Ginnie Nonbank Liquidity
Researchers at the Urban Institute suggested alternatives to provide liquidity support to Ginnie Mae nonbank issuers and suggested that the Federal Housing Finance Agency be the prudential regulator for nonbanks.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Gain in Production Income Offsets 2Q24 Servicing Drag
Improving efficiency played a big role in boosting mortgage-banking profits in the second quarter as gain-on-sale margins narrowed while servicing took a hit on net MSR valuation. (Includes data table.)
Inside Mortgage Finance
Jumbo Mortgages Gain Market Share in Second Quarter
Originations of both non-agency and conforming jumbo mortgages increased in the second quarter. Combined, they accounted for 16.1% of first-lien originations. Meanwhile, home price appreciation is slowing. (Includes three data tables.)
Inside Nonconforming Markets
Nonprime Servicing Volume Flat in 2Q
Overall nonprime mortgage servicing portfolios remained steady in the second quarter despite some sizeable increases at some servicers. (Includes data table.)
Inside MBS & ABS
Refi Uptick Helps Drive an Increase in Agency MBS
Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
Inside the CFPB
CFPB to Snuff Out Customer Service ‘Doom Loops’
As part of a White House initiative, the CFPB is launching a rulemaking to put a stop to customer service processes that waste consumers’ time and money.
Inside The GSEs
GSE MBS Issuance Spikes in August
Freddie issuance totaled $35.67 billion in August versus $34.36 billion at Fannie — a rare instance in which Freddie was the larger issuer. Year to date, though, Fannie is still the leader. (Includes two data tables.)
Inside FHA/VA Lending
HECM Production Increases in the Second Quarter
New FHA home equity conversion mortgage endorsements increased 10.8% from the first quarter to the second. Year-to-date, though, volume was down from the first six months of 2023. (Includes three data tables.)

Inside The GSEs

GSE MBS Issuance Spikes in August
Freddie issuance totaled $35.67 billion in August versus $34.36 billion at Fannie — a rare instance in which Freddie was the larger issuer. Year to date, though, Fannie is still the leader. (Includes two data tables.)
Lenders Urged to Take Steps Toward Credit Score Transition
Experts recommend industry stakeholders start working with the new credit scores if they want to be prepared when the transition from FICO Classic to FICO 10 T and VantageScore 4.0 goes into effect.
More Inside The GSEs

The mortgage industry has been shedding jobs for a while now, but some lenders — particularly ones that focus on non-QMs — are talking about staffing up in anticipation of increased originations. Is your shop planning to hire this year?