June 21, 2018

Latest from Inside Mortgage Finance

The top four subservicers control nearly 60% of the market.

Read more in Inside Mortgage Finance.

With Renewed Interest in Bulk Servicing Deals at Some Institutions, Bank Retreat Slowed in 1Q18

Depository institutions continued to pull back from the business of servicing home loans for other investors during the first quarter of 2018, but the rate of withdrawal appeared to slow, according to a new Inside Mortgage Finance ranking and analysis. [Includes two data charts.]

More

Servicing Advisors Worry about the Role Being Played by Fannie and Freddie in ‘Flow’ Market

Investment bankers that make a market in flow servicing rights increasingly are worried about the role Fannie Mae and Freddie Mac play in the space and are beginning to wonder if the two government-sponsored enterprises are creeping beyond their charters.

As the Mortgage M&A Train Continues on Its Path, Eli Global Emerges as an Eager Buyer – to an Extent

Eli Global is hardly a household name in residential finance, but the privately held investment firm aims to be a player in the industry by purchasing mortgage companies and running them as separate entities.

Feature Stories

Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...

Inside Nonconforming Markets

Originations of Expanded-Credit Mortgages Increase in First Quarter, Bucking Industry

Expanded-credit products look to be a ray of sunshine in an otherwise gloomy mortgage market. Originations of the loans increased in the first quarter of 2018 while production in many other product categories declined, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $10.1 billion of expanded-credit mortgages were originated in the first quarter of 2018, up 3.1 percent from the previous quarter and a 13.5 percent ... [Includes one data chart]

Inside MBS & ABS

MBS Outstanding on Steady Growth Track As Mutual Funds Step Up in Early 2018

Ginnie Mae continued to lead the growth in agency single-family MBS outstanding during the first quarter of 2018, according to a new Inside MBS & ABS analysis. [Includes three data charts.]

Inside the CFPB

CFPB Disbands Three Advisory Boards, Wanting Diverse Voices

The CFPB fired all the members serving on three of its advisory boards, including the Consumer Advisory Board, indicating a shift in its approach to external engagement. The consumer agency announced last week that it plans to reconstitute three of its advisory groups – the Consumer Advisory Board, the Community Bank Advisory Council, and the Credit Union Advisory Council – with “new, smaller memberships.” “By both right-sizing its advisory ...

Inside Mortgage Trends

Bank MSR Holdings Decline Again in 1Q18, But Valuations Hit Record High

Commercial banks and savings institutions once again reduced their holdings of mortgage servicing rights during the first quarter of 2018, according to an Inside Mortgage Trends analysis of call-report data. [Includes one data chart.]

Inside The GSEs

MBS Business Up Modestly in May But Little Change in Credit Box

A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]

Poll

With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

vote to see results