Latest News

New Loan Applications Head North Amid Coronavirus Uncertainty
April 1, 2020
As New Jersey loan broker Brian Benjamin put it, “Most lenders I see now want a paystub within 30 days of closing and a verbal VOE [verification of employment] within five days of closing.”
New 'Flexibilities' from the GSEs Might Actually Hamper Production
April 1, 2020
The new “flexibilities” cover both originations and appraisals. On the origination front, Fannie and Freddie will reduce the acceptable age of income documentation on most loans to 60 days from 120...
Extra CRA Credit for Low/Mod Lending During COVID-19 Pandemic
April 1, 2020
Additional community development activities (loans, investments or services that support digital access, health care, small business operations and food supplies) will receive consideration for CRA credit during the pandemic.
Subservicing Sector Continues to Grow
April 1, 2020
Ditech Financial, the nation’s 10th largest subservicer last time around, disappeared from the ranking because a large chunk of the company’s business, including subservicing assignments, was sold to New Residential Investment Corp.

Issuance
GSE MBS Ebbs in February; Refi Surge Forms Offshore
Deliveries of refinance loans into Fannie and Freddie MBS pools fell sharply in February. But record lows in interest rates promise a huge influx of business in coming months. (Includes two data charts.)
Channels
Broker Share Retreats in Agency-Heavy 4Q19 Market
Correspondent production across all three major mortgage food groups was up 12.6% from the third to the fourth quarter, while retail rose 5.8% and wholesale-broker managed just a 2.5% gain. (Includes two data charts.)
Investors
Mutuals, Overseas Investors Key MBS Buyers in 4Q19
The Federal Reserve's revived MBS purchase program will likely absorb half of new monthly issuance, crowding out other investors that have carried the market for the past two years. (Includes two data charts.)
Servicing
Home Mortgage Debt Tops $11 Trillion, Again, in 4Q19
Single-family mortgage servicing was a healthy, growing market with a variety of business strategies in 4Q19. It may be morphing into something much different during the coronavirus crisis.(Includes two data charts.)
Expanded Credit
ECM Production Up But Lags Broader Market
The expanded-credit sector lost market share in 2019 as lower interest rates helped propel refinances of conforming mortgages. Citi was the top lender in the space. (Includes data chart.)
Investors
Japan Top Foreign Investor in U.S. MBS/ABS in 2Q19
Foreign investors boosted their holdings of U.S. agency MBS by 13.4% from June 2018 to the middle of last year, with big gains posted by Japan and China. (Includes data chart.)

Inside Mortgage Finance

MBS Issuer Relief Hangs in the Balance; Nonbanks a Concern
The mortgage market remained unsettled as the coronavirus damaged the U.S. economy and lenders weighed their options. The Fed came to the rescue with liquidity measures but fears regarding nonbanks persist.
Coronavirus Throws Doubt Over Huge Swath of Market
Some 60% of last year's agency single-family business came from markets that are now under shelter-in-places mandated by state governors. (Includes data chart.)
- Non-QM Lenders Suspend Originations as Funding Jams
- MSR Sales Market Mostly Dead (Reason: Coronavirus)
More Inside Mortgage Finance

Inside MBS & ABS

The Fed Takes Extraordinary Measures. Still Undecided: Nonbanks
March 26, 2020
The coronavirus economic assistance package is signed, sealed and delivered but concerns remain over the ability of nonbanks to pay MBS holders in the event delinquencies spike over the short term.
The Federal Reserve Doubles Down on MBS Buying
March 26, 2020
A resumption in quantitative easing — at a pace that dwarfs asset purchases during the financial crisis — is just one of several Fed actions to keep credit markets functioning through the coronavirus crisis.
Pandemic Weighs Heaviest on Non-Agency MBS/ABS
March 26, 2020
The agency MBS will likely see a 10% increase in new issuance when the March data come in, but non-agency MBS, ABS and CMBS production has dried up over the past three weeks.
Fannie Mae and Freddie Mac Dollar Rolls Explained
March 26, 2020
The FHFA’s move to allow Fannie Mae and Freddie Mac to buy MBS has a narrow and specific goal.

More Inside MBS & ABS

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Inside Nonconforming Markets

Non-QM Market Under Stress from Coronavirus
March 20, 2020
As the financial impact of the coronavirus spreads, some lenders have suspended non-QM originations and others have repriced products.
The Famine After the Feast in the Non-Agency MBS Market
March 20, 2020
After a surge in February, the issuance of non-agency MBS has all but ground to a halt due to financial turmoil caused by the coronavirus.
Jumbo Servicing Portfolios Increase in Fourth Quarter
March 20, 2020
Nearly all the firms in a group of 30 servicers increased their jumbo portfolio in 2019. Chase and Truist were the only ones to see a decrease. (Includes data chart.)
Problems Adding Up for Sterling Bank and Trust
March 20, 2020
More trouble for Sterling: DOJ is now investigating the bank’s non-qualified-mortgage origination practices.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Lenders Working from Home, Servicing Sales Moot
March 27, 2020
Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.
Social Distancing Shifts the Focus to Remote Closings
March 27, 2020
Digital mortgage closings are getting renewed attention with the industry forced into social distancing to contain the coronavirus. Remote online notarization can help, though it’s not allowed in all states yet.
Production Income Staggers in 4Q19, Servicing Improves
March 27, 2020
Despite a modest gain in production volume, income from originations and secondary market fell from the third to the fourth quarter. But higher interest rates stabilized performance on the servicing side of the business. (Includes data chart.)
Nonbank Lenders Report Strong Earnings in 4Q19
March 27, 2020
Mr. Cooper Group and PennyMac Financial Services dominated the small group of publicly traded nonbank mortgage lenders with $525 million in net mortgage banking income for the fourth quarter. (Includes data chart.)

More Inside Mortgage Trends

Inside FHA/VA Lending

Ginnie Issuers in Spotlight as Coronavirus Concerns Spike
As the economic fallout from the coronavirus worsens, all eyes are on the FHA book of business. Forbearance is here but delinquencies could spike. And what about nonbank issuer/servicers? Ginnie isn’t saying much.
HUD Halts all Foreclosures and Evictions in Response to COVID-19
The Department of Housing and Urban Development has suspended all foreclosures and evictions of FHA-insured homes for the next 60 days.
Retail Channel Gains Some Ground in FHA/VA Market
The rapid rise in refinance lending in the second half of 2019 boosted consumer-direct activity for FHA/VA lenders, though the correspondent channel remained the largest source of new business. (Includes data chart.)
Ginnie Informs Issuers: BNYM No Longer a Document Custodian
Bank of New York Mellon this month lost its designation as a Ginnie Mae document custodian but issuers have time to find a new one.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Lenders Working from Home, Servicing Sales Moot
Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.
Inside Mortgage Finance
MBS Issuer Relief Hangs in the Balance; Nonbanks a Concern
The mortgage market remained unsettled as the coronavirus damaged the U.S. economy and lenders weighed their options. The Fed came to the rescue with liquidity measures but fears regarding nonbanks persist.
Inside Nonconforming Markets
Non-QM Market Under Stress from Coronavirus
As the financial impact of the coronavirus spreads, some lenders have suspended non-QM originations and others have repriced products.
Inside MBS & ABS
The Fed Takes Extraordinary Measures. Still Undecided: Nonbanks
The coronavirus economic assistance package is signed, sealed and delivered but concerns remain over the ability of nonbanks to pay MBS holders in the event delinquencies spike over the short term.
Inside the CFPB
CFPB Stepping up to Help Lenders During the Pandemic
The CFPB has eased reporting of quarterly HMDA data. Nevertheless, the bureau is continuing with its supervisory activities and other essential functions.
Inside The GSEs
Coronavirus Casts Huge Shadow on GSE Business
States with shelter-in-place orders accounted for 75% of the single-family home loans securitized by Fannie and Freddie last year, and 81% of jobless claims filed last week. (Includes data chart.)
Inside FHA/VA Lending
Ginnie Issuers in Spotlight as Coronavirus Concerns Spike
As the economic fallout from the coronavirus worsens, all eyes are on the FHA book of business. Forbearance is here but delinquencies could spike. And what about nonbank issuer/servicers? Ginnie isn’t saying much.

Inside The GSEs

Coronavirus Casts Huge Shadow on GSE Business
States with shelter-in-place orders accounted for 75% of the single-family home loans securitized by Fannie and Freddie last year, and 81% of jobless claims filed last week. (Includes data chart.)
We’ve Got Two Months to Fix This: Calabria
If the coronavirus crisis goes on for more than six to eight weeks, FHFA Director Mark Calabria sees mortgage servicers under “a lot of stress.”
More Inside The GSEs

Mortgage rates are on a bit of a roller coaster ride these days, hitting historic lows before inching back up amid an uncertain economic environment. What sort of application volume are you seeing?