May 17, 2018

Latest from Inside Mortgage Finance

Radian, Arch and MGIC cover two-thirds of the $1T+ PMI market in terms of insurance in force

Read more in Inside Mortgage Finance.

All Major Loan Products Saw Huge Decline In Production From 4Q17 to Early 2018

Residential mortgage lending was down in the first quarter of 2018 in every category, according to a new analysis and ranking by Inside Mortgage Finance.

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After a Slow First Quarter, Servicing Sales Begin To Heat Up: Pricing Strong and Plenty of Buyers

Although mortgage servicing sales dipped a bit in the first quarter, it appears the second quarter is turning out to be a potential scorcher thanks to rising interest rates and a plethora of buyers.

Mortgage Performance Improves in First Quarter, Helped by Hurricane Recovery and Tax Refunds

The delinquency rate on residential mortgages declined in the first quarter of 2018, according to various data sources. Performance typically improves in the first quarter due to seasonal factors.

Feature Stories

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 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 MBS & ABS

Large Institutions Led the Way as Banking Industry Pulled Back from Residential MBS Market in 1Q18

After an extended period of steady growth in its investment in the residential MBS market, the banking industry changed course in early 2018 and reduced its participation in the market, according to a new Inside MBS & ABS ranking and analysis.

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 CFPBs controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. The lenders 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 ...

Inside Mortgage Trends

GSE Credit Window for Purchase Loans Opened Slightly in 1Q18

Mortgage sellers continue to get a little more adventurous in the kinds of loans they deliver to Fannie Mae and Freddie Mac, according to an exclusive Inside Mortgage Trends analysis of data on mortgage-backed securities issued during the first quarter of 2018. The credit loosening was more apparent in the purchase-mortgage sector, which saw declining production volume from seasonal factors. In the first quarter, 12.61 percent of purchase loans sold ... [Includes two data charts]

Inside The GSEs

Fannie Mae and Freddie Mac Report Strong $7.2B Profit in 1Q

GSE earnings bounced back to a profitable status, as expected, in the first quarter, with Fannie Mae and Freddie Mac reporting a combined $7.2 billion profit. That number is up from the $9.4 billion earnings hit the GSEs took last quarter due to tax reform that went into effect in December 2017. [Includes one chart.]

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