May 24, 2018
Latest from Inside Mortgage Finance
Despite Rough Road Ahead and Likely Contraction, Mortgage Bankers Remain Upbeat About the Future
Mortgage banking profits have been squeezed as refinance activity continues to fall off, and some think the industry is ripe for turmoil from rapidly shifting new technologies. But a panel of senior mortgage banking officials at this week’s secondary market conference sponsored by the Mortgage Bankers Association uniformly boosted the industry’s prospects.
Correspondent Channel Gained Some Market Share in Fiercely Competitive First Quarter
All three loan-production channels saw sharp declines in volume during the first quarter, but correspondent activity held up slightly better than the other platforms. [Includes four data charts.]
Observers Divided Over Prospects for Change in Fannie/Freddie Market Over Next Three Years
Many industry observers are bracing for significant change in the roles of Fannie Mae and Freddie Mac as Congress has failed again to tackle the problem. But some analysts believe the Trump administration will steer away from policy changes that would rile major business constituencies and slow down a major component of the economy.
Latest Mortgage Data
- Wild Gyrations in Reported 1Q18 Mortgage Income
- More Big Swings in GSE Single-Family MBS Business in April
- Bank ABS Holdings Edge Slightly Higher in 1Q18 As the Top Two Investors Add to Their Portfolios
- FHA/VA Loan Denial Rates Track Historical Patterns, Data Show
- California Loses Market Share for Jumbos in 2017
- Consumer Mortgage Complaints Plunge Year Over Year
- More Latest Data
Feature Stories
Inside The GSEs
More Big Swings in GSE Single-Family MBS Business in April
Freddie Mac posted a big increase in its single-family mortgage-backed securities activity in April, reclaiming some market share from Fannie Mae, according to a new Inside The GSEs analysis of MBS disclosure data. Freddie issued $26.08 billion of single-family securities last month, a hefty 22.9 percent jump from March. [Includes two data charts.}
Inside MBS & ABS
Non-Agency MBS Making Big Strides in 2018 But Still Far From Being a Meaningful Market
2018 is shaping up to be the best year for the non-agency MBS market since the financial crisis, but it’s still just a small niche with potential.
Inside Mortgage Trends
Consolidation Wave Expected as Mortgage Industry Faces Tight Margins, Overcapacity
Independent mortgage bankers lost money on loan production during the first quarter of 2018, according to preliminary figures reported by the Mortgage Bankers Association at the group’s annual secondary market conference in New York this week. Respondents to the quarterly mortgage banking performance survey reported, in aggregate, a negative margin in the “mid to high single digits” for the first quarter, said MBA Chief Economist Mike Fratantoni. Researchers are still putting together the ...
Inside Nonconforming Markets
Non-Agency Jumbo Lending Tumbled In 1Q18, Sector Loses Market Share
Production of non-agency jumbo mortgages declined significantly in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $60.0 billion of jumbos were originated in the first quarter, down 26.8 percent from the previous period. Jumbo production was also off 13.0 percent from the first three months of 2017. The decline in jumbo volume was greater than the slowdown in the overall mortgage ... [Includes one data chart]
Inside FHA/VA Lending
FHA, VA Lending Down Sharply in 1Q18 But Programs Diverged
New FHA endorsements and VA home loan guaranty volume were both down significantly in the first quarter, but the two programs followed different paths to mostly similar results. A new Inside FHA/VA Lending ranking and analysis shows that endorsements of FHA forward mortgages slipped 10.5 percent from the fourth quarter to $48.96 billion. That was the lowest quarterly output for the program since early 2015, when just $39.48 billion of FHA forward loans were originated. In the VA program, new loan guarantees fell 11.1 percent from the fourth quarter to $39.06 billion. That was the lowest three-month total since the first lap in 2016, with $37.09 billion produced. Most of the decline in FHA business was in purchase-mortgage lending, which fell 13.5 percent from the fourth quarter. While purchase loans still accounted for a hefty 71.1 percent of FHA forward endorsements during the ... [Charts]
Inside the CFPB
RESPA Clock Effectively Wound Back to Pre-CFPB State
PHH Corp. decided not to appeal to the U.S. Supreme Court a lower court ruling that effectively overturned the CFPB’s controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. The lender’s lawsuit also unsuccessfully challenged the constitutionality of the CFPB. In January, the en banc panel of the U.S. Court of Appeals for the District of Columbia Circuit sided with PHH on the RESPA components of the dispute, invalidating ...
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Most Popular Stories
- Real Estate Agents Prefer Nonbanks when Making Referrals for Purchase Mortgages
- Senators Divided on Prospects for Housing-Finance Reform Legislation this Year
- Bank Holdings of ABS Increase Slightly in First Quarter
- Short Takes: USMI Seconds that GSE Emotion / Don’t Hold Your Breath / Mid America Enters the Warehouse Arena / Fannie Selling NPLs / A Recession Coming? / Freddie Gets a New Chief Compliance Officer
- Short Takes: The Senate Could Vote on Brian Montgomery Soon / House to Take up the Reg Relief Bill / Foreclosure Timelines Extended For Disaster-Area Homes / What’s Next for the CFPB Payday Lending Rule
