December 13, 2018

Latest from Inside Mortgage Finance

ARM Share Drops in Third Quarter

Adjustable-rate mortgages accounted for a smaller share of originations in 3Q18, despite rising interest rates. The decline may reflect slower production in the ARM-heavy jumbo market.

Read more in Inside Nonconforming Markets.

Home-Equity Lending Still Can’t Get Traction Despite Continued Rise in Property Values

Home-equity lending remains one of the soft spots in the mortgage market, as the supply of loans outstanding continued to shrink and new lending volume remained anemic in the third quarter. [Includes three data charts.]

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Worries About FHFA Direction Persist, But It May Take A Year Before the Senate Clears Calabria as New Director

The White House this week finally made up its mind on a new regulator for the government-sponsored enterprises, picking conservative economist Mark Calabria to head the Federal Housing Finance Agency. Now comes the hard part: Getting the Senate to hold confirmation hearings and actually approve him.

FHFA Report Finds Little Change in Overall GSE MBS Guarantee Fees, But Movement in Specific Products

The FHFA’s annual report underscores the amount of cross-subsidy in g-fee pricing for low-score borrowers, loans with high LTVs and cash-out refinancing.

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Feature Stories

Inside FHA/VA Lending

GNMA Data Reveal Sharp Increase in FHA Risk Layering Over 2 Years

FHA officials have sounded alarms over the rising concentration of higher-risk loans in new business. An exclusive new Inside FHA/VA Lending analysis shows they have good reason to be concerned. (chart)

Inside Nonconforming Markets

Outlook for Prime Non-Agency MBS Issuance Closely Connected with GSE Pricing, Tools

Issuance volume and lending practices in the prime non-agency mortgage-backed security market in 2019 will be linked in several ways to the government-sponsored enterprises, according to industry analysts. Volume projections for prime non-agency MBS depend on pricing differences between non-agency execution and delivery of loans to Fannie Mae and Freddie Mac. Non-agency lenders are also expected to increasingly use tools developed by the GSEs. “We expect robust issuance from ...

Inside MBS & ABS

Non-Agency MBS Outstanding Nearing End of 11-Year Tunnel, Agency Market Plods Forward

The supply of single-family non-agency MBS continued to decline in the third quarter of 2018, but the sector may be nearing a turnaround point, according to a new Inside MBS & ABS analysis of outstanding mortgage securities. [Includes two data charts.]

Inside the CFPB

Kraninger Confirmed as CFPB Director. Will She Bring Change?

The Senate last week confirmed Kathy Kraninger as the second permanent director of the CFPB, on a 50-49 party-line vote.

Inside Mortgage Trends

Bank Servicing for Others Changes Tack with 3Q18 Gain, Valuations Rise Again

The outstanding volume of mortgages serviced for other investors by banks and thrifts has been falling almost constantly in the aftermath of the financial crisis, but the third quarter of 2018 saw a relatively rare increase. Banks and thrifts serviced $3.627 trillion of residential mortgages for other investors – typically mortgage-backed securities trusts – at the end of September, according to a new Inside Mortgage Trends analysis of call-report data ... [Includes one data chart]

Inside The GSEs

GSE Single-Family Business Steady in November Thanks to Freddie

Single-family mortgage business volume fell slightly from October to November, while refinance activity actually grew. [Includes two data charts.]

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Poll

With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.

45%

Yes, but only incrementally.

16%

We’re pondering a move into non-QM, but haven’t made up our mind.

13%

No, definitely not. We view it has too risky.

26%

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