Ginnie Mae MBS purchase issuance rose 14.9% in May compared to April, according to an analysis by Inside FHA/VA Lending. (Includes two data charts.)

Retail Channel Holds Up as Jumbo Lending Takes Hit

No channel was immune to the downturn in jumbo originations in the first quarter of 2022, but the retail channel suffered the least. There were also wide variations at the lender level in originations trends. (Includes data chart.)

Investors

Most MBS Investor Groups Post Declines in 1Q22 Values

While the market value of residential MBS fell in the first quarter, the volume of outstanding securities continued to grow. (Includes two data charts.)

Servicing

Depositories Lose Ground in Servicing, Nonbanks Plow on

Nonbanks increased their share of the mortgage servicing market by nearly 5% in the first quarter, while a one-time reporting change lowered credit union portfolio holdings. (Includes three data charts.)

Issuance

GSE Sellers Feel the Pinch in May; MBS Volume Drops

As a share of total mortgages sold to the GSEs, refinances fell to just 37.9% in May, the lowest level since July 2019.

Servicing

Bank MSR Fair Value Ratio Hits Level Last Seen in 2006

The ratio measuring the fair value of banks’ mortgage servicing rights compared with their servicing for others hit a post-2008 high as of the end of March thanks to the spike in interest rates.

Inside Mortgage Finance

Banks Nibble at Nonbank Share of Mortgage Lending

Nonbanks still accounted for 66% of first-lien mortgage production by the top 100 lenders in the first quarter, but depository institutions in the group managed to up their share slightly. (Includes two data charts.)

A Nice Gain for Second-Lien Production, Outstandings Shrink

It was a good news/bad news story for the second-lien market in the first quarter of 2022. Production increased nicely but outstandings fell. (Includes three data charts.)

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Inside MBS & ABS

Securitization Rates Spike in 1Q22 as Originations Tumble

June 23, 2022

The timing lag between primary market originations and MBS issuance led to a sharp increase in securitization rates in the first quarter of 2022. (Includes data chart.)

MBS/ABS Investment Down In BHC Trading Accounts

June 23, 2022

Bank holding companies reported a hefty 17% decline in the value of MBS in trading accounts during the first quarter. ABS and commercial MBS investment was up slightly. (Includes data chart.)

Deals Backed by Non-QMs And SFRs Hit the Street

June 23, 2022

Sponsors of non-agency mortgage-backed securities have been busy of late. One goal is to clear out older, lower-yielding paper. At least two recent deals fit the bill and more could be on the way.

Most REIT-Related Debt Trading at a Discount

June 23, 2022

When the financial outlook weakens, equity prices suffer and debt prices soon follow. Mortgage REITs are no exception. But overall, the cohort is holding up better than nonbank lender/servicers.

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Poll

Inside Nonconforming Markets

Originations of Short-Term Mortgages Jump in 2021

June 24, 2022

Fix-and-flip lending recovered in 2021 from a pandemic-led slowdown the previous year. Originations of short-term loans shot up nearly 75% on an annual basis. (Includes data chart.)

Some Buyers Holding Out for Higher-Yielding Whole Loans

June 24, 2022

Are secondary market non-QM buyers getting choosier about the paper they buy in a rising interest rate environment? In some cases, the answer is yes. Then again, who can blame them.

Bank Portfolio Holdings Up In 1Q22; Wells Takes a Hit

June 24, 2022

Bank and thrift holdings of first-lien mortgages increased in the first quarter of 2022. Meanwhile, Wells Fargo and JPMorgan trimmed their portfolios. (Includes data chart.)

More Job Cuts at Expanded-Credit Lender Sprout

June 24, 2022

Turmoil in the secondary market regarding prices paid for expanded-credit loans may be feeding job cuts at Sprout Mortgage. It’s hard to say, though. The New York-based company is keeping a low profile.

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Inside Mortgage Trends

Brokers Lose Conventional-Conforming Market Share

June 17, 2022

The broker share of conventional-conforming mortgages declined on a sequential basis to 20.3% in the first quarter of this year, according to surveys of various lenders. (Includes two data charts.)

The Fed’s Rate Hike — And the Ramifications

June 17, 2022

The Fed hiked short-term rates 75 basis points Wednesday, adding to uncertainty about originations. One thing is for certain: The refi game is over.

Wide Variety in Banks’ 1Q22 Mortgage Banking Income

June 17, 2022

Overall, banks saw a 24% decline in mortgage banking income in the first quarter of 2022. Many banks bucked the trend with large increases in income compared with the previous quarter. (Includes data chart.)

Court Finds RPM/LendUS Deliberately Blew Up Merger

June 17, 2022

A New York district court has found that RPM/LendUS used stalling tactics to get out of a merger deal with Entitle Direct Group, a title insurance company.

More Inside Mortgage Trends

Inside FHA/VA Lending

Correspondents Gain Share in 1Q22 FHA/VA Market

Government lending declined across all three major production channels during the first quarter of 2022. However, the correspondent platform was able to significantly boost its market share. (Includes data chart.)

HECM Production Continues Stellar Growth in 1Q22

Lender activity in FHA-insured reverse mortgages continued its upward trend in the first quarter of 2022, with some $8.38 billion of loans endorsed. (Includes three data charts.)

VA Wants to Expand Appraisal Panel

In a largely purchase market, the demand for timely appraisals becomes more critical, John Bell, executive director of the VA Loan Guaranty Service, said in an interview.

HUD Counselors Seek Clarity on Manufactured Housing

New questions relating to manufactured housing will be added to the HUD housing counselor training and certification exam later this year.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends

Brokers Lose Conventional-Conforming Market Share

The broker share of conventional-conforming mortgages declined on a sequential basis to 20.3% in the first quarter of this year, according to surveys of various lenders. (Includes two data charts.)

Inside Mortgage Finance

Banks Nibble at Nonbank Share of Mortgage Lending

Inside Nonconforming Markets

Originations of Short-Term Mortgages Jump in 2021

Fix-and-flip lending recovered in 2021 from a pandemic-led slowdown the previous year. Originations of short-term loans shot up nearly 75% on an annual basis. (Includes data chart.)

Inside MBS & ABS

Securitization Rates Spike in 1Q22 as Originations Tumble

The timing lag between primary market originations and MBS issuance led to a sharp increase in securitization rates in the first quarter of 2022. (Includes data chart.)

Inside the CFPB

Trade Groups Pan CFPB Role in Bank Merger Reviews

Industry trade groups said a separate role for the CFPB when it comes to reviewing bank mergers was unnecessary and would be outside of the bureau’s authority.

Inside The GSEs

Seller Repurchases of GSE Loans Spike in 1Q22

Fannie and Freddie reported $1.01 billion in seller repurchases during the first quarter of 2022, the highest quarterly volume in nearly eight years. (Includes three data charts.)

Inside FHA/VA Lending

Correspondents Gain Share in 1Q22 FHA/VA Market

Sales of bulk mortgage servicing rights are at a fever pitch these days. Has your shop gotten in on the buying frenzy?