Latest News

An Increase in Purchase Lending? That's Correct
December 1, 2022
The top three purchase lenders through the first nine months of 2022: UWM, Wells Fargo and PennyMac Financial...
FDIC-Insured Crypto Lender Pulls the Plug on Warehouse Finance
December 1, 2022
Sources told Inside Mortgage Finance that Silvergate is transferring its warehouse business to another bank...
CHLA Asks FHA, FHFA to Intervene on Costs of Credit Reports
December 1, 2022
Trade group President Taylor Stork said the reasoning behind the price increases have been shrouded in secrecy...
Mr. Cooper Chief Cashes In Some of His Holdings
December 1, 2022
Mr. Cooper's share price has held up reasonably well compared to most of its nonbank peers...

ABS
Bank ABS Holdings Decline Again in 2022 Third Quarter
Much of the downturn in bank ABS holdings reflects slumping fair-market values for these securities, but the industry also appeared to actively shed some assets. (Includes two data charts.)
Originations
Third-Party Lenders Gaining Ground in Slumping Market
Retail lending led the mortgage market to lower production volume in the third quarter as rates stayed stubbornly high and companies moved to cut overhead. (Includes six data charts.)
Ginnie Mae Issuance
Few Positives as Decline in Ginnie Issuance Steepens
The falloff in refinance issuance is easing, but perhaps only because it's nearing rock bottom. (Includes two data charts.)
Issuance
Prime RMBS Market Flops in 3Q22: Five Deals Issued
Lenders cut back on jumbo originations in the third quarter, and they kept most of what they produced. The result: a 73% nosedive in prime RMBS issuance from the second quarter. (Includes three data charts.)
Investors
Banks Post Another Drop in Residential MBS in 3Q22
A market-wide slump in MBS fair market values accounted for most of the decline in reported bank holdings of these securities during the third quarter. And there was a significant increase in MBS held in bank trading accounts. (Includes two data charts.)
Mortgage Insurance
FHA Ekes Out Slight 3Q22 Gain as Other Insurers Fade
Originations of purchase mortgages with primary MI coverage declined in the third quarter, but the FHA stood alone with a sturdy 7% increase in purchase endorsements. National MI was the only private insurer to boost quarterly production. (Includes three data charts.)

Inside Mortgage Finance

Purchase-Mortgage Market Tilts Toward Repeat Buyers
Although purchase-mortgage originations fell 12% from the second quarter, several lenders reported increased production in the third quarter. Nearly all top lenders saw hefty declines in refinance business in the third quarter. (Includes four data charts.)
Bitcoin Lender Silvergate Pulls the Plug on Warehouse Finance
Silvergate Bank has been in the news because of its crypto-finance-related business. But the depository is now in the process of trying to quietly pull out of warehouse lending. What’s going on? The bank isn’t talking.
- Slow Growth for Most Subservicers. Changes Ahead?
- Subservicing Looks Good but Default Outlook Is Dodgy
More Inside Mortgage Finance

Inside MBS & ABS

REITs Report Small Gain in Residential MBS in 3Q22
December 1, 2022
Despite rising rates and volatility, mortgage REITs reported a small gain in their retained agency MBS holdings. The industry’s aggregate TBA position was lower, as was non-agency MBS investment. (Includes data chart.)
S&P Holds Steady Lead in ABS Ratings, Kroll Hangs On
December 1, 2022
With rated issuance tumbling sharply in the third quarter, only Fitch managed to boost its ABS business, while DBRS was the only rating service to show a gain in non-agency MBS. (Includes two data charts.)
Canadian-Owned Firm ID’d as Buyer of AO Loans
December 1, 2022
A nonbank can only hold underwater non-QMs for so long until a decision needs to be made. In the case of Angel Oak, it decided to sell roughly $350 million of product at a steep discount of 83 cents on the dollar.
Industry Lauds SEC Relief on Disclosure Rule for MBS, ABS
December 1, 2022
The Securities and Exchange Commission has delayed implementation of a disclosure rule the industry feared would compromise the ability of many issuers to access the 144A market.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Non-Agency Jumbo Lending Takes a Hit as Interest Rates Rise
November 23, 2022
Originations of non-agency jumbo mortgages declined by 34.8% from the second to the third quarter, driven by rising interest rates. The decline in the jumbo sector was largely in line to trends in the mortgage market. (Includes data chart.)
Jumbo Servicing Portfolios Increase Slightly in 3Q22
November 23, 2022
Despite a drop in jumbo originations, servicing portfolios at many shops increased during the third quarter. Top-ranked Wells Fargo saw its jumbo servicing portfolio go up by less than 1%, while second-ranked Chase did slightly better at 2.6%. (Includes data chart.)
Commercial Lender Decides to Enter the Non-QM Arena
November 23, 2022
Stronghill Capital of Austin, TX, has launched a new residential lending division that will focus on non-qualified mortgages, non-agency jumbos and loans for investment purposes. This comes at a time when the rest of the non-agency sector is caving in.
WMC Spills Red Ink, Reports Zero Non-QM Acquisitions in 3Q
November 23, 2022
Western Asset Mortgage Capital is in the middle of a strategic review that could result in a sale or merger of the real estate investment trust.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Nonbanks Endure Another Harsh MB Earnings Cycle
November 18, 2022
UWM had, by far, the most successful third quarter among publicly traded nonbank mortgage companies, boosting net income by 51% from the previous period. But others saw sharp declines in profitability and four nonbanks posted losses. (Includes data chart.)
Bank and Thrift Servicing Values Continue to Rise in 3Q
November 18, 2022
Banks and thrifts continued to see more value in their mortgage servicing rights in the third quarter, while their portfolios increased only slightly. (Includes data chart.)
Shifting MSR Market Gives Lenders a Lot to Think About
November 18, 2022
Loan-level analytics can help small and mid-sized mortgage companies decide whether to sell or retain newly originated mortgage servicing rights as they plan survival strategies for an increasingly hostile market.
Third Layoff Round Strikes Blend Amid Nonstop Losses
November 18, 2022
The fintech expects cost savings tied to the workforce reductions to materialize starting in the first quarter of 2023. Meanwhile, KBW upgraded the company’s stock to market perform.

More Inside Mortgage Trends

Inside FHA/VA Lending

Refis Continue to Drag Govt-Insured Volume Down
VA lending took the brunt of the 3Q22 downturn as its streamlined refinance business all but disappeared. Meanwhile, UWM overtook Rocket in the FHA market. (Includes three data charts.)
Experts Bemoan Looming Ginnie Mae Eligibility Rule
Small issuers will have two options: sell production to aggregators rather than Ginnie or sell off mortgage servicing rights.
FHA Adds Private Flood Insurance Option
The rule, which takes effect Dec. 21, differs somewhat from those that apply to other federally backed mortgages.
MMIF Audit Report Spurs New Calls for MIP Cut
Industry stakeholders once again called for cuts to FHA’s mortgage insurance premium last week after the agency announced a record high capital ratio for its Mutual Mortgage Insurance Fund. (Includes data chart.)

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Nonbanks Endure Another Harsh MB Earnings Cycle
UWM had, by far, the most successful third quarter among publicly traded nonbank mortgage companies, boosting net income by 51% from the previous period. But others saw sharp declines in profitability and four nonbanks posted losses. (Includes data chart.)
Inside Mortgage Finance
Purchase-Mortgage Market Tilts Toward Repeat Buyers
Although purchase-mortgage originations fell 12% from the second quarter, several lenders reported increased production in the third quarter. Nearly all top lenders saw hefty declines in refinance business in the third quarter. (Includes four data charts.)
Inside Nonconforming Markets
Non-Agency Jumbo Lending Takes a Hit as Interest Rates Rise
Originations of non-agency jumbo mortgages declined by 34.8% from the second to the third quarter, driven by rising interest rates. The decline in the jumbo sector was largely in line to trends in the mortgage market. (Includes data chart.)
Inside MBS & ABS
REITs Report Small Gain in Residential MBS in 3Q22
Despite rising rates and volatility, mortgage REITs reported a small gain in their retained agency MBS holdings. The industry’s aggregate TBA position was lower, as was non-agency MBS investment. (Includes data chart.)
Inside the CFPB
CFPB Appeals Funding Decision to the Supreme Court
The bureau, which is speeding things up to make sure the case is decided by June, says the Fifth Circuit decision contradicts the Constitution, historical practice, and case law.
Inside The GSEs
Higher Interest Rates Juice FHLBanks’ 3Q22 Earnings
Systemwide, FHLBank advances grew 36.5% in the third quarter, helping drive a 51.1% sequential increase in profits. (Includes three data charts.)
Inside FHA/VA Lending
Refis Continue to Drag Govt-Insured Volume Down
VA lending took the brunt of the 3Q22 downturn as its streamlined refinance business all but disappeared. Meanwhile, UWM overtook Rocket in the FHA market. (Includes three data charts.)

Inside The GSEs

Higher Interest Rates Juice FHLBanks’ 3Q22 Earnings
Systemwide, FHLBank advances grew 36.5% in the third quarter, helping drive a 51.1% sequential increase in profits. (Includes three data charts.)
Lower Earnings Compound Capital Shortfalls at the GSEs
Sagging home prices forced the GSEs to post a combined $4.34 billion provision for credit losses in the third quarter, undercutting retained earnings. (Includes data chart.)
More Inside The GSEs

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