February 15, 2018

Latest from Inside Mortgage Finance

The top four participants are servicing 31.9% of the nation's mortgages, according to Inside Mortgage Finance.

See who the top 50 servicers at year-end 2017 were.

Private MIs Lose Some Share Late in the Year, But Industry Gained Overall in 2017

Private mortgage insurers took a bigger share of the primary MI market last year, although the VA program rebounded in the fourth quarter, a new Inside Mortgage Finance analysis reveals.

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Shell Company Stuffed with NOLs Agrees to Buy Nation’s Third Largest Servicer in a Feat of Financial Engineering

WMIH Corp., a shell company whose chief asset is tax losses, this week agreed to purchase Nationstar Mortgage for roughly $1.68 billion in cash and stock.

Mortgage Delinquencies Increase at End of 2017 with Poor Performance Concentrated in Areas Damaged by Hurricanes

Mortgage delinquencies overall increased at the end of the year, with the poor performance largely attributed to areas hit by hurricanes in August and September. Mortgage performance in most of the rest of the country actually improved at the end of 2017.

Feature Stories

Inside the CFPB

Trump Budget Plan Envisions Major Restructuring of Consumer Bureau

The Trump administration has released a proposed fiscal year 2019 budget that envisions big changes for the CFPB. According to budget documents, the White House is proposing to restructure the bureau, limit its mandatory funding in 2019, and provide discretionary, congressional appropriations to fund the agency beginning in 2020. Many of the proposed changes would require revisions to the bureau’s charter by Congress that would likely face a difficult path to enactment ...

Inside Mortgage Trends

GSE Credit Trends Continued Easing In 2017, Not So Much in Fourth Quarter

The credit box in Fannie Mae and Freddie Mac lending continued to widen – at a glacial rate – during 2017, according to a new Inside Mortgage Trends analysis of mortgage-backed securities disclosure data. The easing trend seemed to lose momentum slightly in the fourth quarter, as more government-sponsored enterprise business landed in the middle-risk categories. For the full year, 12.13 percent of GSE purchase loans were in the highest-risk ... [Includes two data charts]

Inside MBS & ABS

Banking Industry Increased Its MBS Holdings in Late 2017, But Many Institutions Pared Back Their Portfolios

Commercial banks and savings institutions held a combined $1.844 trillion of single-family MBS in their investment portfolios at the end of 2017, a modest 0.3 percent increase from the previous period, according to a new Inside MBS & ABS ranking and analysis.

Inside The GSEs

GSEs Report $9B Earnings Loss Resulting from Tax Act

As predicted, per the Tax Cuts and Jobs Act, the GSEs’ fourth-quarter earnings took a big hit with Fannie Mae and Freddie Mac posting losses of $6.5 billion and $2.9 billion, respectively. This is a far cry from their combined net income of $7.7 billion in the third quarter. But this likely one-time event was prompted by the GSEs having to reduce the value of their deferred tax assets by $15.3 billion after the tax act became law in December 2017. As a result, Fannie will need a $3.7 billion draw from Treasury and Freddie will have to request a $312 million draw.

Inside Nonconforming Markets

Non-Agency Jumbo Originations Fell 18 Percent in 2017, Demand Weakened

Originations of non-agency jumbo mortgages declined by 17.8 percent on an annual basis in 2017, according to a new ranking and analysis by Inside Nonconforming Markets. The sector lost market share as total mortgage originations declined by 12.3 percent during that span. Jumbo originations were down among most of the top 10 lenders, including banks and nonbanks, with many reporting weaker consumer demand, particularly as refinances became ... [Includes one data chart]

Inside FHA/VA Lending

Correspondent Platforms Had Big Year in FHA/VA Market in 2017

The steadiest source of new FHA and VA loans flowing into Ginnie Mae mortgage-backed securities came from correspondent lending platforms, according to a new Inside FHA/VA Lending analysis. In the fourth quarter, however, correspondent originations declined more than retail and wholesale-broker production. Ginnie last year securitized $115.05 billion of FHA loans that issuers acquired from correspondent lenders. That was down 2.8 percent from 2016, but total FHA loan deliveries dropped 13.9 percent over that period. The correspondent share of the FHA market rose to 48.6 percent last year, a gain of 5.5 percentage points from 2016. FHA loans generated by brokers accounted for 14.8 percent of 2017 activity, up slightly from the previous year. But retail-originated FHA loan volume plummeted 25.5 percent, dropping the channel’s share of the market to 36.6 percent – down from 42.3 percent back in ... [ Chart ]

Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

vote to see results