Latest News

Purchase-Mortgage Share Hits 85% in First Quarter
June 2, 2023
The purchase-mortgage share is growing as refinance business dwindles.
Biden Administration Proposes Rule on Automated Valuation Models
June 2, 2023
Vice President Kamala Harris announced the issuance of a joint rulemaking proposal on automated valuation model use in assessing transaction collateral, as well as several other coming developments in the appraisal space.
To Boost Non-QM Lending, Educate Loan Originators
June 2, 2023
“MLOs don’t want to touch non-QM if they don’t have to,” said Aaron Samples, the former CEO of First Guaranty Mortgage.
Nonbank Ginnie Issuers Making Progress on Capital Requirements
June 2, 2023
Ginnie President Alanna McCargo is confident nonbanks will be able to meet pending capital requirements.

ABS
Banks Pull Back from ABS as Fair Value Drifts Lower
Although top-ranked TD Bank trimmed its portfolio substantially, a handful of banks increased their ABS holdings in early 2023. (Includes two data charts.)
Originations
Market Tilts Toward TPO in 1Q23, Rivals Fill Wells Void
PennyMac appeared to gain the most from Wells Fargo's exit from the correspondent market during the first quarter. Slumping refinance business hit the retail channel hard. (Includes six data charts.)
Sales
Nonbanks Increase Market Share as Volumes Drop
The only lender type that saw an increase in GSE-related production in the first quarter was housing finance agencies. Meanwhile, deliveries to the GSEs ticked up in April. (Includes two data charts.)
Earnings
Most Banks Post Stronger Mortgage Banking Earnings
After a harsh fourth quarter, most banks reported rebounding earnings from their mortgage banking operations in early 2023 despite declining originations volume. (Includes data chart.)
Channels
Brokers Increase Market Share as Refis Continue to Wane
An analysis of agency securitizations shows brokers gaining market share as their loan sizes increased faster than other channels. Credit scores improved somewhat but DTI and LTV ratios rose. Refis took a smaller slice of a shrinking pie. (Includes two data charts.)
Investors
Failures Spur Another Drop in Bank MBS Investment
The failures of SVB and Signature Bank were the major causes of another decline in aggregate bank MBS holdings, but the fair value of the industry's portfolio remains well below amortized cost. (Includes two data charts.)

Inside Mortgage Finance

Private MI Gains Share in Agency Purchase Market
Both purchase-mortgage lending and refinancing were down substantially in the first quarter, but a number of lenders gained share — or even increased production volume — compared with the prior period. (Includes four data charts.)
MSR Market Still Running Strong
Some experts expect MSR trading to top $1 trillion in each of the next three years, surpassing the approximately $900 billion traded in 2022.
- Subservicing Growth Near Zero in 1Q23
- Lenders Struggle to Stay Afloat Amid Volatility
More Inside Mortgage Finance

Inside MBS & ABS

REITs Find Opportunity in Turbulence to Boost MBS
June 1, 2023
The Federal Reserve has been paring its massive agency MBS portfolio, and banks have been on the sideline. Cue a modest rebound in REIT investment in the sector in the first quarter. (Includes data chart.)
MBS Issuance Expected to be Suppressed for Years
June 1, 2023
Lower demand and drastically reduced issuance may balance out in the MBS market. Meanwhile, high spreads mean the asset could attract new investors.
FHFA Encouraged to Establish Social Bond Framework for GSEs
June 1, 2023
Numerous industry participants support FHFA developing a social bond designation for single-family MBS issuance from the GSEs. There are lingering concerns about the impact on the agency MBS market and borrower privacy.
Ginnie is Confident Issuers Will Meet Capital Standards
June 1, 2023
The need for Ginnie Mae nonbank issuers to have ongoing access to capital is key to their success, and that informs the agency’s approach to policy and risk management, said Ginnie President Alanna McCargo.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Jumbo Originations Hit Hard by Rising Interest Rates
May 19, 2023
Rising interest rates and tightening of credit standards from banks caused a slowdown in jumbo lending in the first quarter of 2023. First Republic Bank was the top producer in the sector, followed by Wells Fargo. (Includes data chart.)
Non-QM Lenders on a Hiring Spree
May 19, 2023
Deephaven Mortgage and Arc Home are looking to add to their operations and sales teams to take advantage of upcoming opportunities in the non-QM space.
Higher-Priced Lending Sees Modest Gains in 2022
May 19, 2023
Originations of higher-priced mortgages slightly increased last year, with many loans produced by CDFIs and lenders who specialize in mobile and manufactured homes. (Includes two data charts.)
REITs Struggle With Non-QMs in First Quarter
May 19, 2023
Real estate investment trusts are facing adversity in the non-qualified mortgage space due to high interest rates and low originations.

More Inside Nonconforming Markets

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Inside Mortgage Trends

Nonbank Mortgage Income Battered Again in Early 2023
May 26, 2023
Half of the 16 publicly traded nonbank mortgage lenders reported net losses in the first quarter. The MBA found independent mortgage bankers lost an average of $1 million, largely due to hugely unprofitable loan production. (Includes data chart.)
Banks Shrink Servicing for Others in First Quarter
May 26, 2023
Bank portfolios of mortgage servicing for others contracted slightly during the first quarter. Also, the ratio measuring MSR fair value against the UPB serviced for others continued to drop after peaking in the third quarter of last year. (Includes data chart.)
Lenders Raise Concerns About FHFA’s Credit Score Plan
May 26, 2023
FHFA proposed adjusting the capital framework that applies to the GSEs to incorporate planned changes in the usage of credit scores. Lenders want more data before any changes are implemented.
Outlook for the Rest of 2023: More of the Same
May 26, 2023
Issues at regional banks will likely slow the economy and have impacts on mortgage lending through the year, according to economists at the MBA. Still, GSE economists suggest that originations could pick up soon.

More Inside Mortgage Trends

Inside FHA/VA Lending

FHA, VA Endorsements Continue Downward Slide
The volume of FHA and VA originations continued to fall in the first three months of the year, marking the eighth straight quarter-over-quarter decline. (Includes three data charts.)
FHA, PMI Serve Different Market Needs
FHA lending is concentrated on borrowers with loan-to-value ratios greater than 95%, while private MI activity is focused on borrowers with LTV ratios between 85% and 95%, according to an analysis by Inside FHA/VA Lending of agency mortgage-backed securities disclosures.
Lawmakers Reintroduce Bipartisan HELPER Act
A revised version of the Homes for Every Local Protector Educator and Responder Act was introduced in Congress last week. The bill would offer downpayment assistance through the FHA loan program for many teachers and first responders.
FHA Finalizes New HECM Assignment Timeline
Under the modified policy, FHA decreased the minimum loan balance threshold at which a mortgagee can submit the assignment request for a home equity conversion mortgage.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Nonbank Mortgage Income Battered Again in Early 2023
Half of the 16 publicly traded nonbank mortgage lenders reported net losses in the first quarter. The MBA found independent mortgage bankers lost an average of $1 million, largely due to hugely unprofitable loan production. (Includes data chart.)
Inside Mortgage Finance
Private MI Gains Share in Agency Purchase Market
Both purchase-mortgage lending and refinancing were down substantially in the first quarter, but a number of lenders gained share — or even increased production volume — compared with the prior period. (Includes four data charts.)
Inside Nonconforming Markets
Jumbo Originations Hit Hard by Rising Interest Rates
Rising interest rates and tightening of credit standards from banks caused a slowdown in jumbo lending in the first quarter of 2023. First Republic Bank was the top producer in the sector, followed by Wells Fargo. (Includes data chart.)
Inside MBS & ABS
REITs Find Opportunity in Turbulence to Boost MBS
The Federal Reserve has been paring its massive agency MBS portfolio, and banks have been on the sideline. Cue a modest rebound in REIT investment in the sector in the first quarter. (Includes data chart.)
Inside the CFPB
Amicus Briefs Defend CFPB Funding, Warn of Contagion
Several amicus briefs have been filed in defense of the CFPB’s funding structure in a case the Supreme Court will hear in its next term. Former and current members of Congress and academics said the bureau’s funding is consistent with historical practice.
Inside The GSEs
Outstanding FHLBank Advances Top $1.0 Trillion
Outstanding FHLBank advances have only surpassed $1 trillion one other time. Banks and thrifts — including now-failed institutions — boosted their advance usage in the first quarter. (Includes three data charts.)
Inside FHA/VA Lending
FHA, VA Endorsements Continue Downward Slide
The volume of FHA and VA originations continued to fall in the first three months of the year, marking the eighth straight quarter-over-quarter decline. (Includes three data charts.)

Inside The GSEs

Outstanding FHLBank Advances Top $1.0 Trillion
Outstanding FHLBank advances have only surpassed $1 trillion one other time. Banks and thrifts — including now-failed institutions — boosted their advance usage in the first quarter. (Includes three data charts.)
Surging Repurchase Requests May Not Reflect Policy Changes
The GSEs say the spike in repurchase requests simply reflects the historic volume in 2020 and 2021. Lenders argue there should be something short of a repurchase request for performing loans with minor defects.
More Inside The GSEs

Some companies launched cryptocurrency-backed mortgage products during the recent housing boom. Do you think this is a space worth joining?