May 24, 2018

Latest from Inside Mortgage Finance

Residential mortgage lending fell in every category in 1Q2018

Read more in 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 weekís secondary market conference sponsored by the Mortgage Bankers Association uniformly boosted the industryís 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.

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 itís 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 groupís 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 ďmid to high single digitsĒ 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 CFPBís controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. The lenderís 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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