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FHFA and Treasury Eliminate Cap on GSE Retained Earnings. Now What?
January 15, 2021
Rather than ending the net worth sweep outright and agreeing to write off some of its preferred shares, Treasury is essentially simply allowing Fannie Mae and Freddie Mac to continue their practice of retaining earnings.
Is Wall Street Running Out of (Nonbank) Mortgage IPO Candidates?
January 15, 2021
What about Movement Mortgage as an IPO candidate?
4Q Results Begin: Wells Slides in Mortgages, JPM Gains…
January 15, 2021
Wells Fargo: “Home lending revenue [was] down 21% from 3Q20 on lower servicing income and MSR valuation adjustments reflecting higher prepayment.”
Non-Agency Securitizations Still a Work in Progress. Re: COVID
January 15, 2021
For all of 2020, non-agency MBS issuance totaled $90.23 billion, down 20.0% from the year before...

Issuance
Agencies Push MBS/ABS Issuance to $3.64 Trillion in 2020
Thanks to heavy consumer refi demand, the support of the Fed and muscular production by nonbanks, the agency single-family market pushed overall MBS/ABS issuance to record levels in 2020. (Includes three data charts.)
MBS
Agency Single-Family Market Tops $1 Trillion in 4Q20
Fannie and Freddie led the surge to a record $3.15 trillion of agency MBS issuance in 2020. The agency market saw huge shifts in seller demographics. (Includes two data charts.)
Fannie Mae
Nonbanks Expand Footprint in GSE Sales and Servicing
Nonbank sellers accounted for 63.9% of single-family mortgages pooled in Fannie and Freddie MBS during the first 11 months of 2020, raising their share of the GSE market by nearly 10 percentage points. (Includes two data charts.)
Profitability
Banks Report 3Q20 Bonanza in Originations, Loan Sales
Retail originations by banks' mortgage banking operations rose to the highest level in seven years but they understate total lending by the industry. (Includes two data charts.)
Investors
Plenty of Buyers for Growing Agency MBS Supply in 3Q20
Commercial banks, savings institutions, credit unions and the Federal Reserve continued to buy agency MBS during the third quarter. Fannie and Freddie drove a 2.2% increase in residential MBS outstanding. (Includes two data charts.)
Home-Equity Lending Perks Up in 3Q20, Supply Shrinks
New funding of home-equity loans rose in the third quarter as borrowers tapped into existing accounts, but banks generally shrank from writing new HELOC commitments. (Includes three data charts.)

Inside Mortgage Finance

Nonbanks Extend Footprint in Agency MBS Servicing
Freddie Mac saw the biggest gain in agency MSR during the fourth quarter, fueled by a hefty 18% increase by independent mortgage companies. Ginnie servicing fell slightly despite growth among nonbanks. (Includes two data charts.)
Not Bad: $38 Billion of MSRs Offered Over the Past Few Weeks
The long-awaited recovery in MSR sales may finally be here. It appears Ocwen and Freedom were the winning bidders on a $25 billion Quicken portfolio.
- Is Wall Street Running Out of Mortgage IPO Candidates?
- FHFA Ends COVID-Related Early Forbearance Loan Policy
More Inside Mortgage Finance

Inside MBS & ABS

COVID Recovery is Still a Work in Progress for RMBS
January 14, 2021
Issuance of prime jumbo non-agency MBS was up in 2020 despite a soft fourth quarter, but the expanded-credit mortgage sector lagged, as did securitization of reperforming loans. (Includes three data charts.)
Agency MBS Delinquency Rates Decline in December
January 14, 2021
After a slight blip higher in early-stage delinquencies in November, late-payment rates fell in December for all three agencies. (Includes data chart.)
CLOs Pass the Pandemic Test With Flying Colors
January 14, 2021
For years, industry analysts raised concerns about the quality of CLOs, warning of poor performance. While issues from the coronavirus prompted some problems, AAA-rated tranches of CLOs have held strong.
A Banner Year for Agency MBS Trades? Yep
January 14, 2021
In 2020, mortgage records were broken all over the industry. MBS trading, meanwhile, had its best year since 2010.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Non-Agency MBS Issuance Fizzles in Fourth Quarter
January 15, 2021
Issuance of non-agency MBS declined by 41.5% from the third to the fourth quarter. On an annual basis, volume was off 12.7% as the market struggled to recover from volatility in March. (Includes data chart.)
Outlook on Non-Agency MBS Issuance: Bright and Gloomy
January 15, 2021
Some analysts expect prime non-agency MBS issuance to increase by 60% in 2021. Expanded-credit deals are also likely to rebound.
Redwood Jumbo Volume Up in 4Q20, Expanded-Credit Lags
January 15, 2021
The REIT set a company record for locked jumbo business in the third quarter and then went on to break it in the fourth quarter. Redwood is focusing on prime jumbos as its expanded-credit lending has stalled.
Figure Planning Jumbo MBS Showcasing Blockchain
January 15, 2021
The fintech upstart aims to issue a jumbo MBS during the first quarter of 2021 using blockchain technology. Mike Cagney’s shop also has applied for a bank charter.

More Inside Nonconforming Markets

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Inside Mortgage Trends

GSE Market Skews Further to Low-Risk Loans in 4Q20
January 8, 2021
With consumer demand peaking at historic levels in the fourth quarter, the share of higher-risk loans sold to Fannie and Freddie continued to decline. (Includes two data charts.)
California's Share of MI Business Grew in 4Q20
January 8, 2021
Private mortgage insurance provided most of the coverage for purchase loans securitized in the fourth quarter, while VA was the top guarantor of agency refi loans. (Includes data chart.)
Forbearance Helped Many Borrowers Avoid Foreclosure
January 8, 2021
It’s too early to tell if the foreclosures have been avoided altogether or just pushed further into the future, a Federal Reserve economist said.
GNMA Buyouts Drive Bank Repurchases Higher in 3Q20
January 8, 2021
Commercial banks and thrifts reported over $1 billion of mortgage repurchases during the third quarter. (Includes data chart.)

More Inside Mortgage Trends

Inside FHA/VA Lending

VA Cements its Status as Kingpin in GNMA Market
The VA home loan guaranty program accounted for 54% of single-family loans securitized in Ginnie MBS last year, thanks to a roaring refinance program. (Includes four data charts.)
Another Large FHA/VA Lender Reveals IPO
Michigan-based lender Home Point is joining the stampede into public ownership.
Ginnie Mae Posts $1.1B Profit for FY20
After incurring a $546.3 million loss in fiscal 2019, Ginnie Mae earned $1.1 billion on revenues of $4.3 billion in fiscal 2020.
Ginnie Loans in Relief Down, But Not Out of the Woods Yet
A sign of trouble ahead: December job losses, mainly in the leisure and hospitality sector.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
GSE Market Skews Further to Low-Risk Loans in 4Q20
With consumer demand peaking at historic levels in the fourth quarter, the share of higher-risk loans sold to Fannie and Freddie continued to decline. (Includes two data charts.)
Inside Mortgage Finance
Nonbanks Extend Footprint in Agency MBS Servicing
Freddie Mac saw the biggest gain in agency MSR during the fourth quarter, fueled by a hefty 18% increase by independent mortgage companies. Ginnie servicing fell slightly despite growth among nonbanks. (Includes two data charts.)
Inside Nonconforming Markets
Non-Agency MBS Issuance Fizzles in Fourth Quarter
Issuance of non-agency MBS declined by 41.5% from the third to the fourth quarter. On an annual basis, volume was off 12.7% as the market struggled to recover from volatility in March. (Includes data chart.)
Inside MBS & ABS
COVID Recovery is Still a Work in Progress for RMBS
Issuance of prime jumbo non-agency MBS was up in 2020 despite a soft fourth quarter, but the expanded-credit mortgage sector lagged, as did securitization of reperforming loans. (Includes three data charts.)
Inside the CFPB
Compliance Could Get Tougher for Mortgage Firms in 2021
One of the biggest issues mortgage lenders will face is implementing changes to the general qualified-mortgage rule, which has a mandatory compliance date of July 2021.
Inside The GSEs
Nonbanks Power GSEs to New MBS Records in 2020
Independent mortgage bankers accounted for a stunning 70% of single-family loans securitized by Fannie and Freddie during the fourth quarter. In a record-smashing year for both GSEs, Freddie boosted its share of the market. (Includes two data charts.)
Inside FHA/VA Lending
VA Cements its Status as Kingpin in GNMA Market
The VA home loan guaranty program accounted for 54% of single-family loans securitized in Ginnie MBS last year, thanks to a roaring refinance program. (Includes four data charts.)

Inside The GSEs

Nonbanks Power GSEs to New MBS Records in 2020
Independent mortgage bankers accounted for a stunning 70% of single-family loans securitized by Fannie and Freddie during the fourth quarter. In a record-smashing year for both GSEs, Freddie boosted its share of the market. (Includes two data charts.)
What Georgia Runoffs Mean For Housing Finance, the GSEs
Their new Senate majority, albeit a slim one, should make it easier for Democrats to pass key budget priorities. But what does it mean for Fannie and Freddie?
More Inside The GSEs

Refinances were the hot story of 2020, but plenty of purchase lending still got done as well. What did your shop’s loan breakdown look like?