Latest News

What Keeps FHFA Director Calabria Up at Night: Risk, Not Footprint
September 20, 2019
FHFA Director Mark Calabria: Reducing risk isn’t necessarily the same as reducing volume…
CSBS Analyzes Nonbank Servicers and Frets a Great Deal
September 20, 2019
The CSBS report: “Thin liquidity margins, especially when coupled with the other risks identified above, can put a nonbank in a sudden compromised position triggered by a reduction in revenues or other market or economic events such as volatile interest rates that can have significant impact on the value of MSRs.”
Residential Securitization Market Has Some Catching Up to Do
September 20, 2019
Read the tea leaves: Just 56.4% of second-quarter loan originations have been pooled in MBS. In recent years, the overall securitization rate has run at about 70%.
Once Again, the Clock is Ticking on the National Flood Insurance Program
September 20, 2019
The flood bill, introduced by committee Chairwoman Maxine Waters, D-CA, following extensive negotiations with Ranking Member Patrick McHenry, R-NC, aims to provide certainty to the market…

A major influx of refinance business pushed Fannie and Freddie MBS issuance to $120.25 billion in August, their biggest monthly production since January 2013.

ABS

Bank ABS Investment Falls in Growing 2Q19 Market

Most of the industry's pullback in ABS holding resulted from portfolio trimming by the three largest bank investors. Total ABS outstanding rose sharply in the second quarter.

Originations

Home-Equity Lending Up in 2Q19 as Market Shrinks

Lenders reported a sharp increase in new home-equity lending in the second quarter, but the supply of home-equity debt outstanding continued to fall.

Expanded Credit

Expanded-Credit Originations Trail Strong Market in 2Q

Production of expanded-credit mortgages increased in the second quarter but not by nearly as much as the surge in total originations. The sector was crowded out to some extent by conventional loan refinances.

Issuance

Agency MBS Issuance Up Sharply on Boom in Refi

Fannie, Freddie and Ginnie issued a combined $170.7 billion in new single-family MBS in August, their highest monthly volume since November 2012. A big surge of refinance business was a major factor.

Originations

First Timers Continue to Rely on GSEs, FHA/VA

Private MIs and Freddie Mac posted relatively larger gains in first-time buyer business during the second quarter, though the government-insured market was still the biggest source of such loans.

Inside Mortgage Finance

Inside MBS & ABS

Focusing on GSE Risk, Not Footprint: Calabria

September 19, 2019

Dealing with the risks in Fannie Mae’s and Freddie Mac’s portfolio is more complicated than simply reducing the footprint of the government-sponsored enterprises, FHFA Director Mark Calabria told IM&A.

Securitization Market Has Some Catching Up to Do

September 19, 2019

Nearly $320 billion of newly originated home loans were funneled into the MBS market during the second quarter, but that represented just 56.4% of new production in the primary mortgage market.

DBRS Leads in Rating MBS, S&P Tops in ABS Market

September 19, 2019

DBRS and Fitch were the top rating services in non-agency MBS mostly because they cover a lot of scratch-and-dent transactions. S&P excels in nonprime, Moody's in jumbo.

Secondary Market Participants Clash Over QM ‘Patch’ Fix

September 19, 2019

Issuers and investors in the securities market are divided on what exactly should be done with the qualified mortgage “patch.”

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Treasury Calls for Reforms to Boost Non-Agency Market

September 13, 2019

The Treasury report on housing-finance reform included a number of suggestions on how federal regulators could promote a level playing field between the GSEs and non-agency players.

Treasury, Redwood Weigh In on QM ‘Patch’ Resolution

September 13, 2019

In comments on ways to address the end of the qualified mortgage patch, the Treasury suggested using a bright-line test while Redwood cautioned against using a metric based on the interest rate of a mortgage.

Jumbo Servicing Continues Steady Growth in Second Quarter

September 13, 2019

Servicing portfolios stocked with jumbo mortgages continued to steadily increase in the second quarter. However, portfolio growth at the top two servicers hasn’t kept pace with the market overall.

Nonbanks Differ on Jumbo Loan Sale Strategies

September 13, 2019

The top correspondent sellers of jumbo mortgages vary in where they sell loans. About half of sales in 2018 were to banks, about a third went to nonbanks and the rest was delivered directly to non-agency MBS.

More Inside Nonconforming Markets

Inside Mortgage Trends

Wholesale-Broker Channel a Big Winner in 2Q19 Rally

September 6, 2019

Mortgage brokers upped their market shares in both government-insured and conventional-conforming lending. Retail production also fared well in 2Q19.

In a Down Year for Originations, MBA’s Revenue Increases

September 6, 2019

For the fiscal year ending Sept. 30, 2018, MBA took in $65.1 million of revenue versus expenses of $54.4 million, according to a newly released tax filing. Roughly half of its annual revenue comes from its hugely popular annual convention.

MSR Values Tank in 2Q19; Bank SFO Balances Decline

September 6, 2019

Most of the industry's declining balance of servicing for others was attributable to Wells Fargo, JPMorgan Chase and Bank of America.

Lenders See Significant Increase in Mortgage Profits in 2Q19

September 6, 2019

Mortgage lenders posted a net gain of $1,675 per origination in the second quarter, the best quarter the industry has seen since the third quarter of 2016, the Mortgage Bankers Association said in a recent report.

More Inside Mortgage Trends

Inside FHA/VA Lending

HUD Recommends Scorecard to Track Loan Performance

The department has recommended a scorecard to ensure FHA borrowers re-ceive financing that is appropriate and sustainable for long-term homeowner-ship. Meanwhile, the Treasury has outlined the new role Fannie Mae and Freddie Mac would play in a revamped housing-finance system.

Bigger Role Seen for Ginnie in Housing Finance

The Treasury has recommended Congress empower Ginnie Mae to provide “last position” guarantee on MBS backed by conventional home loans and au-thority to adjust its guarantee fee.

HUD Mulls Formal Rulemaking on Downpayment Assistance

Despite a legal setback, the department said it intends to proceed with a for-mal rulemaking on downpayment assistance provided by government entities. This time, though, with proper notice to stakeholders.

Government Correspondent Sales Strong in 2018

Overall, 42.8% of government-backed loans originated in 2018 were sold to unaffiliated non-agency buyers, according to recently released Home Mortgage Disclosure Act data. The majority of sellers with at least $1.0 billion in sales were nonbanks.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends

Wholesale-Broker Channel a Big Winner in 2Q19 Rally

Mortgage brokers upped their market shares in both government-insured and conventional-conforming lending. Retail production also fared well in 2Q19.

Inside Mortgage Finance

Jumbo Market Lights Up in 2Q19, Agency Volume Soars

The conforming-jumbo business might be an attractive target for shrinking the GSE footprint as the loan limit is poised to top $500,000. But it's not clear it would de-risk Fannie/Freddie business.

Inside Nonconforming Markets

Treasury Calls for Reforms to Boost Non-Agency Market

The Treasury report on housing-finance reform included a number of suggestions on how federal regulators could promote a level playing field between the GSEs and non-agency players.

Inside MBS & ABS

Focusing on GSE Risk, Not Footprint: Calabria

Inside the CFPB

Treasury Department Calls for End of QM ‘Patch’

The Treasury Department in its housing-finance reform plan has asked the CFPB to end the qualified mortgage “patch” as scheduled and establish a bright-line rule in its place.

Inside The GSEs

GSE MBS Issuance Rockets to Biggest Month in 6 Years

A major influx of refinance business pushed Fannie and Freddie MBS issuance to $120.25 billion in August, their biggest monthly production since January 2013.

Inside FHA/VA Lending

HUD Recommends Scorecard to Track Loan Performance

Government reports show mortgage companies added just a small number of employees in April. But anecdotal evidence suggests real-world hiring could be rising more quickly. Is your shop planning on adding staff in the second half of the year?