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What We’re Hearing: Loan Brokers, the Swagger is Back / Hiding From Wholesale: Most Banks / What Would Jamie Dimon Say? / Olmem is the Man / Lifting the Pay Cap on GSE CEOs?
August 23, 2019
One GSE-related question that hasn’t been answered yet: If a recap and release plan becomes a reality, will Congress end the $600,000 pay cap on GSE CEO compensation?
Banks Keep Adding to Their MBS Holdings. JPM and BofA Set the Pace
August 23, 2019
In the second quarter, Bank of America and JPMorgan Chase increased their MBS holdings by $12.34 billion and $22.39 billion, respectively.
Boom Times for Better.com: Originations Spike, Firm Raises $160M. And ‘Help Wanted’ Too
August 23, 2019
Better.com President Jerry Selitto told Inside Mortgage Finance the firm hopes to add 400 additional employees by yearend. Some of its workforce is in India…
Blend Scores Freddie Mac Partnership
August 23, 2019
Then again, the partnership with Freddie isn’t exactly novel. The vendor has a similar arrangement with the GSE’s crosstown rival Fannie Mae…

Some 12.9% of purchase loans sold to Fannie and Freddie in the second quarter had credit scores ranging from 620 to 699, the highest such concentration on record. But loans with high credit scores accounted for a rising share of GSE refi business.

Investors

Mortgage REITs Up Agency MBS Holdings Again in 2Q19

A group of 15 top mortgage REITs increased its agency MBS portfolio by $20.9 billion during the second quarter of 2019, although non-agency MBS investment slipped modestly.

Originations

2Q19 Yields Big Gains in All Products, But ECM Lagged

Jumbo lending increased by 67.2% from the first quarter of 2019 to the second, faster than any other product category. Expanded-credit lending had the slowest growth rate.

FHA

Strong Refinance Demand Propels FHA, VA 2Q Production

Fueled by low rates, demand for FHA and VA refis was strong in the second quarter, although purchase loan originations for both programs hit the ceiling as well.

Originations

Large Share of GSE Business Outside of ‘Core’ Functions

More than half of the dollar volume of mortgages securitized by the GSEs in 2018 was backed by noncore loans, according to a new analysis by Inside Nonconforming Markets.

Agency MBS

Agency MBS Issuance Soars in July, Purchase Loans Up

Mortgage lenders delivered $85.5 billion of purchase loans to Fannie, Freddie and Ginnie MBS platforms in July, the highest monthly volume in years.

Inside Mortgage Finance

Wholesale-Broker Channel Keeps Expanding in 2Q19

Mortgage brokers feasted on a growing crop of refinance business during the second quarter, pushing the wholesale channel to a 14.6% share of new first-lien mortgage originations.

Lenders Facing Capacity Issues. Any Underwriters to Spare?

Thanks to lower rates, residential loan production is booming but some lenders are experiencing capacity issues because they didn’t staff up quickly enough. Hard to find a good loan processor? You bet.

More Inside Mortgage Finance

Inside MBS & ABS

Chase and BofA Lead Banks in 2Q19 MBS Buying Spree

August 22, 2019

Nearly all of the banking industry’s growth in residential MBS holdings was in Fannie, Freddie and Ginnie pass-through securities.

Citi the Second Big Bank to Enter the Non-QM MBS Market

August 20, 2019

Following Chase, Citi is issuing MBS backed by non-QMs. The participation of two big banks is an encouraging sign for the sector.

China Securitization Market Facing Growing Pains

August 22, 2019

With more transactions given the go-ahead, China’s RMBS and auto loan ABS sectors face new challenges, according to S&P.

In an About-Face, New Rez Decides to Buy Back Common

August 22, 2019

New Residential Investment Corp. is pulling an about-face, of sorts. After issuing new shares of common earlier in the year, it’s now embarked on a $200 million buyback program.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Non-Agency Jumbo Originations Surged in the Second Quarter

August 16, 2019

Originations of non-agency jumbo mortgages increased in the second quarter, spurred by low interest rates. The sector gained market share and some lenders said pipelines were strong heading into 3Q19.

REITs Lapping Up Non-QMs

August 16, 2019

Several real estate investment trusts, including MFA Financial and Starwood Property Trust, are expanding their portfolio of non-qualified mortgages. The loans provide attractive returns, whether retained or bundled into an MBS.

Annaly, Chimera Seeing Benefits of Non-Agency MBS

August 16, 2019

Annaly and Chimera are generating strong returns aggregating mortgages, issuing non-agency MBS and retaining subordinate tranches from the deals. Chimera plans to be a regular issuer of non-agency MBS with GSE-eligible loans.

Quicken Tops Prime Non-Agency MBS Contributors in 2Q

August 16, 2019

Quicken increased its contributions to prime non-agency MBS this year, including $619 million of loans going into deals issued in the second quarter. Characteristics of the deals were largely unchanged.

More Inside Nonconforming Markets

Inside Mortgage Trends

Banks Report 2Q19 Boost in Mortgage Banking Income

August 23, 2019

Mortgage banking income was up in the second quarter but didn’t keep pace with big increases in loan origination volume and secondary market sales. Wells Fargo accounted for the lion’s share of the increased profitability.

Steady Credit Trends in 2Q19 Agency MBS Market

August 23, 2019

Purpose and production channel matter in loan credit characteristics but the biggest difference maker is whether the mortgage has a government guarantee.

Ocwen Insiders, Including CEO, Buy Shares

August 23, 2019

The nation’s 12th largest servicer, continues to lose money, but in early August company insiders started buying stock in the firm.

New Residential Eyeing Profits from Ancillary Unit

August 23, 2019

New Residential is increasing its emphasis on ancillary services. The REIT also announced a $200 million stock repurchase program.

More Inside Mortgage Trends

Inside FHA/VA Lending

Wholesale Channel Gallops to Bigger GNMA Share

The volume of broker-originated FHA and VA refinance loans pooled in new Ginnie MBS jumped 94.1% from the first to the second quarter. Correspondent production saw the smallest gains among the three channels.

Ginnie 1-Family MBS Surges to Four-Year High in July

Purchase loans still accounted for over two-thirds of Ginnie loan deliveries, but the volume of incoming refinance loans had a slightly higher increase from June.

Final Condo Financing Rules

HUD’s final rules on condo projects allow certain condo units to be eligible for FHA-insured loans even if the project is not FHA approved.

Lenders Don’t Need Prior Approval to Cure IRRRLs

Lenders don’t need prior VA approval to cure IRRRLs that do not meet certain standards as long as it doesn’t increase loan costs.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends

GSE Credit Scores Trend Higher, LTV Ratios Rising

Inside Mortgage Finance

Wholesale-Broker Channel Keeps Expanding in 2Q19

Mortgage brokers feasted on a growing crop of refinance business during the second quarter, pushing the wholesale channel to a 14.6% share of new first-lien mortgage originations.

Inside Nonconforming Markets

Non-Agency Jumbo Originations Surged in the Second Quarter

Inside MBS & ABS

Chase and BofA Lead Banks in 2Q19 MBS Buying Spree

Nearly all of the banking industry’s growth in residential MBS holdings was in Fannie, Freddie and Ginnie pass-through securities.

Inside the CFPB

Industry Mulls Transition as End of QM ‘Patch’ Nears

As the initial anxiety over the CFPB’s plan to end the qualified mortgage “patch” fades, mortgage industry participants are assessing their options.

Inside The GSEs

Fannie/Freddie 2Q19 Profits Down

Fannie and Freddie reported lower combined comprehensive income in the second quarter compared with a year ago. While net interest income and non-interest income declined, expenses shot up.

Inside FHA/VA Lending

Wholesale Channel Gallops to Bigger GNMA Share

Government reports show mortgage companies added just a small number of employees in April. But anecdotal evidence suggests real-world hiring could be rising more quickly. Is your shop planning on adding staff in the second half of the year?