Latest News

Between M&A and IPO Talk, Interest in Non-QM Sector Remains High
February 21, 2020
The IPO market remains closed to 'A' paper nonbanks, but that's not the case when it comes to non-QM originators...
Moody's Warns of Regulatory Risks for Some Non-QMs
February 21, 2020
Moody's believes that relying on less than 12 months of a borrower's bank statements increases the risk a non-QM loan may not meet the CFPB's standards...
Depositories Boost MBS Holdings … Thanks to a Mortgage-Hungry BofA
February 21, 2020
Bank of America added $9.13 billion to its MBS portfolio, which nearly matched the $9.60 billion increase for the entire industry.
Trump Picks Wade as FHA Commissioner as Montgomery Waits for Senate Confirmation
February 21, 2020
Wade is no stranger to the Department of Housing and Urban Development...

Ginnie Mae Issuance
Ginnie MBS Issuance Starts 2020 With Unexpected Gain
Overall volume was up for both purchase and refinance loans as Ginnie posted its second-highest monthly MBS issuance. VA provided most of the oomph. (Includes two data charts.)
Securitization
UWM Tops Prime Non-Agency MBS Contributors in 2019
United Wholesale Mortgage was the top originator of prime mortgages securitized in non-agency MBS in 2019. Underwriting characteristics for the sector loosened modestly.
Agency MBS
Freddie Gains Level Playing Field in 4Q19 GSE Market
For the first time, Freddie was able to charge a higher average g-fee for new single-family business during the fourth quarter of 2019. Pricing disparity was a key driver in the development of the uniform MBS.
Originations
Brokers Post Banner Year in 2019, Retail Gains in 4Q19
The wholesale-broker market was the fastest-growing production channel in 2019 and reached its strongest annual volume since the financial crisis. Retail saw bigger gains in the fourth quarter as refinance volume spiked. (Includes six data charts.)
Agency MBS
Nonbank Share of GSE MBS Business Up Sharply in 2019
Independent mortgage bankers became the largest source of new single-family loans for Fannie and Freddie MBS in 2019, while significantly expanding their share of the GSE servicing market. (Includes data chart.)
Servicing
MSR Transfers Up in 4Q19 As Older Transactions Close
NewRez, Lakeview and Mr. Cooper ranked as the top bulk buyers of agency servicing in 2019. Coissuance volume was flat in the fourth quarter despite a rise in overall agency securitization. (Includes three data charts.)

Inside Mortgage Finance

Private MI Loses Share as Refi Buoys FHA/VA in 4Q19
Arch Mortgage Insurance retained its ranking as the top private MI in the business, but several of its competitors gained market share in 2019. (Includes two data charts.)
Bloomberg Touts Fannie-Freddie Merger
If billionaire Mike Bloomberg starts looking like a front-runner in the 2020 presidential elections, putting out stock offerings on Fannie Mae and Freddie Mac could prove difficult.
- Enough Policy Guidance on False Claims Act?
- Between M&A and IPO Talk, Interest in Non-QM Sector High
More Inside Mortgage Finance

Inside MBS & ABS

Banks Boost MBS Holdings in 4Q19 Thanks to BofA
February 20, 2020
The biggest gain in bank MBS investment over the past year was in agency pass-throughs, up 11.4% from December 2018, although holdings of non-agency securities also climbed 7.4%. (Includes two data charts.)
JPMorgan Issues First Credit Card ABS in Two Years
February 20, 2020
JPMorgan Chase has issued its first ABS transaction backed by credit card receivables through Chase Issuance Trust since May 2018. A wildcard to the deal, however, is a pending lawsuit involving the issuance trust.
As Non-QM Warehouse Credit Expands, MBS Deals Should Benefit
February 20, 2020
A noticeable increase in warehouse credit to non-QM originators is bolstering both lending volumes and MBS creation. Another positive: better terms for nonbank borrowers.
GSE Multifamily Loan Originations Slowed in 4Q19
February 20, 2020
Two prominent GSE multifamily lenders cut production in the fourth quarter as they adjusted to the new investment limits set for Fannie and Freddie. The new caps are unlikely to constrain GSE business in 2020.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Jumbo Originations Jump in 2019, Slow in Fourth Quarter
February 21, 2020
Production of jumbos increased by nearly 50% in 2019. The increase was proportional to broader trends in the mortgage market, but the sector didn’t keep pace in the fourth quarter. (Includes data chart.)
Kraninger Says Robust Market for Non-QMs Absent
February 21, 2020
CFPB Director Kathy Kraninger says the relatively small size of the non-qualified-mortgage market is one of the reasons the bureau plans to change QM standards.
FHFA is More Likely Than Congress to Hike G-Fees
February 21, 2020
Congress is unlikely to increase the g-fee charged by the GSEs, though the FHFA may as part of efforts to “level the playing field” between the GSEs and the non-agency market.
Moody’s Raises Concerns Over Non-QM Underwriting
February 21, 2020
Certain non-QM lenders’ underwriting tactics might not meet the CFPB’s ability-to-repay rule, according to Moody’s. It suggested tighter standards for bank statement mortgages and loans to the self-employed.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

4Q19 Retail Credit Profile Mostly Stronger than TPO
February 14, 2020
A large concentration of refinance loans meant that retail mortgages sold to the agencies had higher credit scores — along with lower LTV and DTI ratios — than did third-party originations. Seller profiles were shaped by their channel strategies. (Includes two data charts.)
Private MI Volume Surges in 4Q19 with Agency Refi Wave
February 14, 2020
Sales to Fannie and Freddie of refinance loans with private MI coverage rose 61.8% from the third to the fourth quarter last year. But the VA program remained the most refi-intensive sector.
BlackRock Moves Large Stake in PennyMac to Charities
February 14, 2020
BlackRock transferred $589 million of stock in PennyMac Financial Services, accounting for a 20% stake in the lender, to two of its affiliated charitable entities. BlackRock initially invested $34 million in PennyMac in 2008.
Road Blocks Aplenty When It Comes to Mortgage M&A
February 14, 2020
Freedom Mortgage’s planned acquisition of RoundPoint Mortgage Servicing is the latest example of delays in merger and acquisition deals. Factors delaying transactions include approvals from Ginnie and state regulators.

More Inside Mortgage Trends

Inside FHA/VA Lending

Lower Rates Fuel Strong Demand for FHA Product in 2019
FHA endorsements in the fourth quarter of 2019 were the highest in years. Most of the increase was in the refinancing business led by the lower interest rate environment.
Strong Refi Activity Sets New Record for VA Originations
VA originations set a new record in the fourth quarter despite a slump in purchase lending. Nonetheless, purchase mortgages accounted for a large share of total VA business in 2019.
Don’t Expect More Guidance On FCA Enforcement: DOJ
The Justice Department sees no need to issue additional guidance on defective FHA loans. The agency believes the actions undertaken so far will encourage depository institutions’ participation in the FHA program.
HUD 2021 Budget Has Legislative Proposals for FHA, Ginnie
HUD sought no changes in its funding request for FHA and Ginnie but has called for legislative reforms, and will seek them through the authorization, rather than the appropriations, process.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
4Q19 Retail Credit Profile Mostly Stronger than TPO
A large concentration of refinance loans meant that retail mortgages sold to the agencies had higher credit scores — along with lower LTV and DTI ratios — than did third-party originations. Seller profiles were shaped by their channel strategies. (Includes two data charts.)
Inside Mortgage Finance
Private MI Loses Share as Refi Buoys FHA/VA in 4Q19
Arch Mortgage Insurance retained its ranking as the top private MI in the business, but several of its competitors gained market share in 2019. (Includes two data charts.)
Inside Nonconforming Markets
Jumbo Originations Jump in 2019, Slow in Fourth Quarter
Production of jumbos increased by nearly 50% in 2019. The increase was proportional to broader trends in the mortgage market, but the sector didn’t keep pace in the fourth quarter. (Includes data chart.)
Inside MBS & ABS
Banks Boost MBS Holdings in 4Q19 Thanks to BofA
The biggest gain in bank MBS investment over the past year was in agency pass-throughs, up 11.4% from December 2018, although holdings of non-agency securities also climbed 7.4%. (Includes two data charts.)
Inside the CFPB
Lawmakers Question Abusiveness Standard, QM Revision
During a congressional oversight hearing, House Financial Services Committee members grilled CFPB Director Kathy Kraninger on the bureau’s interpretation of the abusiveness standard, plans to reform the qualified-mortgage rule and the controversial RESPA bulletin.
Inside The GSEs
GSE Single-Family Business Volume Steady in January
GSE single-family MBS issuance fell 1.6% from December 2019 to January 2020, but production was double its volume of a year ago. (Includes two data charts.)
Inside FHA/VA Lending
Lower Rates Fuel Strong Demand for FHA Product in 2019
FHA endorsements in the fourth quarter of 2019 were the highest in years. Most of the increase was in the refinancing business led by the lower interest rate environment.

Inside The GSEs

GSE Single-Family Business Volume Steady in January
GSE single-family MBS issuance fell 1.6% from December 2019 to January 2020, but production was double its volume of a year ago. (Includes two data charts.)
Freddie Cuts Some Fat; Fannie to Follow?
As part of Freddie’s voluntary retirement program, 700 employees have taken a buyout. Most are expected to be gone by the end of March.
More Inside The GSEs

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