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Quicken Has Big Plans for QLMS Unit. Firm Looks to Hire 250
October 17, 2019
Quicken said QLMS increased its volume of closed loans 240% from the third quarter of last year to 3Q19…
Wow: Nonbank Share of Agency Servicing Market Tops 47%
October 17, 2019
Fun fact: Over the past five years, the nonbank share of the agency servicing market has almost doubled and now stands at 47.2%...
FHFA Chief Suggests an Early End to the Conservatorships
October 17, 2019
Believe it or not, the two mortgage giants are much closer to getting out from under the FHFA’s thumb than most observers expect…
A Decent Origination Quarter for Bank of America
October 16, 2019
BofA no longer reports mortgage earnings separately in its quarterly results. Residential finance is housed in the company’s community banking division, which reported net income of $3.3 billion in 3Q19, a slight gain from the prior period.

Ginnie Mae
Refi Business Spurs Another Big Month in GNMA MBS
Ginnie single-family MBS issuance rose 12.8% from July to $50.41 billion, the highest monthly production figure since September 2016. (Includes two data charts.)
Non-QM
Non-QM Market Set for More Growth
Originations of non-QMs are set to increase along with issuance of MBS backed by the loans. Investors in the secondary market are helping to fuel the growth.
Mortgage and Asset Securitization
Agencies Pull MBS/ABS Issuance to 11-Year High
Although agency business faltered slightly in September, Fannie, Freddie and Ginnie drove the ABS/MBS market to a whopping $542 billion in new issuance during the third quarter. (Includes three data charts.)
Agency MBS/Secondary Activity
Heavy Refi Activity Boosts Agency Business in 3Q19
Agency single-family MBS production surged to $463.7 billion in the third quarter, the hottest market in nearly 11 years. But a handful of top players recorded declining sales to Fannie, Freddie and Ginnie platforms. (Includes two data charts.)
Outstanding Mortgage Securities
Plenty of Investors Willing to Buy as Fed Sheds MBS
Commercial banks, foreign investors and mortgage REITs all posted big increases in MBS holdings as net new issuance continued to grow and the Fed pared its holdings. (Includes two data charts.)
Mortgage Servicing and Portfolio
Servicing Tied to MBS Up in 2Q19; Bank Portfolio Grows
Banks and thrifts reported substantial growth in their retained home mortgages, including a surge in ARM holdings. Freddie was the fastest-growing MBS market.

Inside Mortgage Finance

Private MIs Expand Share of First-timer Market in 3Q19
Repeat homebuyers accounted for over half of the agency purchase-mortgage market in the third quarter, the first time that’s happened in a while. (Includes four data charts.)
FHFA Seeks Expert to End Control of Fannie, Freddie
The agency is looking for a financial advisor to help in its efforts to remove the government-sponsored enterprises from conservatorship.
- Servicing ‘Marks’ Will Hurt in 3Q19; Originations Strong
- Altisource Pulls the Plug on Real Estate Advisory Unit
More Inside Mortgage Finance

Inside MBS & ABS

Non-Agency MBS Issuance Flat in 3Q, But ECM Soars
October 10, 2019
Nonprime securitization was down for the second straight quarter and the S&D market was sluggish. But prime-jumbo and ECM production rose sharply in the third quarter. (Includes three data charts.)
Chase Preps Unique Credit-Risk Transfer for Non-Agency Loans
October 10, 2019
In an effort to receive favorable capital treatment for credit-risk transfer on non-agency mortgages, JPMorgan Chase is preparing a unique deal.
FHFA Advisory Contract Valued at $20M to $30M
October 10, 2019
The recap and release of Fannie Mae and Freddie Mac could be a bonanza for investment banking/advisory firms that assist the government. There might be four contracts overall.
Do the New Capital Buffers Favor Fannie or Freddie?
October 10, 2019
The new capital buffer deal has a limited life. At current earnings rates, Fannie will reach the $25 billion buffer cap in about two years, Freddie a little later.

More Inside MBS & ABS

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Inside Nonconforming Markets

Expanded-Credit MBS Issuance Surging; Prime Deals Slowing
October 11, 2019
Issuance of expanded-credit MBS more than doubled on an annual basis at the end of the third quarter while deals backed by prime mortgages and GSE-eligible loans declined. The expanded-credit sector is expected to continue to grow, according to industry analysts. (Includes data chart.)
Chase Preps Unique Non-Agency Credit-Risk Transfer Deal
October 11, 2019
JPMorgan Chase Bank has created a synthetic credit-linked note to transfer credit risk on a pool of jumbo mortgages. Unlike traditional MBS, loans in the transaction will remain on the bank’s balance sheet.
Quicken Issues Its First Prime Non-Agency MBS
October 11, 2019
After contributing loans to various prime non-agency MBS in recent years, Quicken Loans is set to issue the first deal on its own shelf.
Lenders Seek Retroactive QM Status Based on Loan Performance
October 11, 2019
The CFPB is considering whether to provide QM status to mortgages that didn’t miss payments in the early years after origination. The proposal has support from some lenders.

More Inside Nonconforming Markets

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Inside Mortgage Trends

Retail Channel Gains Share in 3Q19 Agency Market
October 4, 2019
Retail-originated loans accounted for a higher share of the booming agency mortgage market in the third quarter, and there are signs that wholesale-broker competition is heating up. (Includes two data charts.)
Concerns About Nonbanks Persist. The Latest Worrier: The CSBS
October 4, 2019
The debate that won't go away: Nonbank risk to the financial system. Time to worry? The CSBS weighs in.
Banks Stepped Up Retail Originations, Sales in 2Q19
October 4, 2019
Banks and thrifts reported $83 billion in originations through their retail platforms during the second quarter, the highest level since 3Q17. (Includes data chart.)
Automated Verifications Offer Lenders Relief and Risk
October 4, 2019
The government-sponsored enterprises’ automated verification programs help simplify the mortgage application process. But they could also result in counterparty risk, according to a report by the FHFA IG.

More Inside Mortgage Trends

Inside FHA/VA Lending

Refinancing Pushes GNMA to Record Issuance in 3Q19
Ginnie Mae MBS volume was boosted by a 41% jump in VA loan deliveries and a 22% boost in FHA. Both programs saw sharp increases in refi volume along with rising purchase-mortgage business. (Includes four data charts.)
IG Audit Uncovers FHA Loans to Tax-Delinquent Borrowers
FHA insured at least $13 billion in loans to borrowers with unpaid federal tax debt, according to audit findings by the HUD inspector general. The potential loss on the problem loans could be as much as $6.1 billion, the IG said.
Montgomery Nominated to HUD; Kasper to Quit Ginnie
The White House has nominated FHA Commissioner Brian Montgomery as HUD deputy secretary. Meanwhile, interim Ginnie President Maren Kasper is stepping down by the end of next week.
Increased Oversight of HECM Servicers Expected in 2020
Servicers of Home Equity Conversion Mortgage loans should brace for additional on-site supervisory audits, according to attorneys.

More Inside FHA/VA Lending

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Inside Mortgage Trends
Retail Channel Gains Share in 3Q19 Agency Market
Retail-originated loans accounted for a higher share of the booming agency mortgage market in the third quarter, and there are signs that wholesale-broker competition is heating up. (Includes two data charts.)
Inside Mortgage Finance
Private MIs Expand Share of First-timer Market in 3Q19
Repeat homebuyers accounted for over half of the agency purchase-mortgage market in the third quarter, the first time that’s happened in a while. (Includes four data charts.)
Inside Nonconforming Markets
Expanded-Credit MBS Issuance Surging; Prime Deals Slowing
Issuance of expanded-credit MBS more than doubled on an annual basis at the end of the third quarter while deals backed by prime mortgages and GSE-eligible loans declined. The expanded-credit sector is expected to continue to grow, according to industry analysts. (Includes data chart.)
Inside MBS & ABS
Non-Agency MBS Issuance Flat in 3Q, But ECM Soars
Nonprime securitization was down for the second straight quarter and the S&D market was sluggish. But prime-jumbo and ECM production rose sharply in the third quarter. (Includes three data charts.)
Inside the CFPB
Lawmakers Differ Sharply on CFPB’s Debt Collection Rule
A recent House hearing highlighted differences on how the CFPB should strengthen fair debt collection practices.
Inside The GSEs
Booming GSE Market in 3Q19 More Fragmented
Small and mid-sized mortgage banks expanded their footprint in the GSE market during the third quarter. (Includes two data charts.)
Inside FHA/VA Lending
Refinancing Pushes GNMA to Record Issuance in 3Q19
Ginnie Mae MBS volume was boosted by a 41% jump in VA loan deliveries and a 22% boost in FHA. Both programs saw sharp increases in refi volume along with rising purchase-mortgage business. (Includes four data charts.)

Inside The GSEs

Booming GSE Market in 3Q19 More Fragmented
Small and mid-sized mortgage banks expanded their footprint in the GSE market during the third quarter. (Includes two data charts.)
Is This the End of the Net Worth Sweep? Not Quite
Fannie and Freddie will be able to retain all their second-quarter profits, rather than forward them to Treasury. Combined, the GSEs will add $5.2 billion to their net worth this month.
More Inside The GSEs

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