Latest News

The M&A Train Has Arrived. How Far Will It Go?
May 7, 2021
Among those looking to buy: private-equity firms...
Income and Originations Decline at PennyMac in First Quarter
May 7, 2021
PennyMac's income fell by 17% on a sequential basis in the first quarter, originations declined by 3.5% while the nonbank's servicing portfolio grew by 5.2%.
Another Loss for Impac, Firm ‘Reengages’ with Non-QM Market
May 7, 2021
Personnel expenses at Impac increased 12.8% to $14.9 million...
New Fannie/Freddie Purchase Limits a Mixed Bag for the Non-Agency Market
May 7, 2021
The shift is tied to GSE PSPA amendments, which came in January...

Securitization
New Top Lender Emerges in Prime Non-Agency MBS in 1Q21
Guaranteed Rate jumped to the top spot in the first quarter of 2021 among lenders contributing to prime non-agency MBS. MAXEX Clearing also sharply increased its contributions. (Includes two data charts.)
Commercial MBS
CMBS Issuance Falters in 1Q21, Agency MF Slows
There were pockets of strength in the income-property securitization market, including financing on office properties, mixed-use projects and single-family rentals. But total CMBS issuance fell from the all-time record level set in the fourth quarter of 2020. (Includes data chart.)
Originations
Originations Hit New Record in 1Q21, But Gains Uneven
First-lien mortgage originations climbed 3.2% from the fourth quarter, hitting an estimated $1.305 trillion in the first three months of 2021. Agency lending continued to dominate the market. (Includes two data charts.)
Servicing
Nonbanks Help Freddie Gain Share in 1Q21 GSE Servicing
A number of nonbanks added significantly to their Freddie servicing portfolios during the first quarter, raising the industry's stake to over half of the market. Meanwhile, delinquency rates fell sharply in early 2021. (Includes two data charts.)
Servicing
MSR Transfer Market Off to Puzzling Start in Early 2021
Bulk transfers of Fannie and Freddie servicing rights increased significantly from the fourth quarter, but the Ginnie market was dead. New bulk buyers topped the ranking. (Includes three data charts.)
ABS
ABS Market Roars in 2021, Issuance Hits 16-Year High
Production of vehicle-finance and business ABS was up sharply in the first quarter. A transaction backed by future cash flows from an airline rewards program played a big part, while student loan and consumer ABS markets also posted big gains. (Includes two data charts.)

Inside Mortgage Finance

Servicing Market Thinning at the Top, Nonbanks Surge
The fastest-growing segment of the servicing market included companies ranking sixth through 25th in total servicing. Nonbanks gained ground while depositories fell back. (Includes two data charts.
Powell Open to Idea of CRA for All Lenders
Federal Reserve Chair Jerome Powell suggested expanding the Community Reinvestment Act to include nondepository financial institutions but said Congress will have to make that decision.
- Borrowers Hungry for Jumbos Despite Uptick in Interest Rates
- FHFA Finalizes Rule on Living Wills, Despite Industry Opposition
More Inside Mortgage Finance

Inside MBS & ABS

Agency Market Blooms in April with New Monthly Record
May 6, 2021
Freddie Mac accounted for most of the monthly gain in single-family agency MBS issuance, which rose to $372.9 billion in April, a new all-time high for the market. (Includes two data charts.)
New GSE Purchase Limits and the Non-Agency Market
May 6, 2021
Non-agency outlets are seeing a surge in the supply of non-owner-occupied loans due to caps recently placed on GSE business. Non-agency MBS issuance is expected to increase, though pricing for jumbos is also declining.
PennyMac Taps Structured Finance Vehicle to Lever MSRs
May 6, 2021
Notes backed by MSRs could become plentiful if a strategy employed by PennyMac Financial and its sister company catches fire.
GSE Earnings Up in 1Q21, Retained Portfolios Decline
May 6, 2021
The GSEs reported a modest decline in net interest income, which includes earnings from MBS guarantee fees. The surge in g-fee income from the adverse market fee implemented in December will be spread over the expected life of the loans. (Includes data chart.)

More Inside MBS & ABS

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Inside Nonconforming Markets

QM Changes to Help Improve Odds for Non-Agency Players
May 7, 2021
In the absence of the GSE patch, lenders have fewer incentives to rely on GSE eligibility when determining a loan’s QM status. Still, the final destination of a loan will depend on pricing in the non-agency market.
AmWest Top Contributor to Expanded-Credit MBS in 1Q21
May 7, 2021
Some $470 million of expanded-credit mortgages originated by AmWest Funding were securitized in the first quarter. (Includes three data charts.)
Jumbo Lenders Have Options Thanks to Changes to QM Standards
May 7, 2021
At least until October 2022, jumbo lenders can use either the long-standing qualified mortgage standards or the new, more flexible standards.
Guaranteed Rate Leads Jumbo Correspondent Sellers in 2020, By Far
May 7, 2021
Guaranteed Rate sold $5.55 billion of jumbo mortgages to unaffiliated buyers in 2020, nearly three times the volume of second-ranked Quicken Loans. (Includes two data charts.)

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Agency Market Sees 1Q21 Drop in Correspondent Share
April 30, 2021
An increase in the refinance share of agency single-family business led to a decline in the correspondent channel's market share in the first quarter. (Includes two data charts.)
Mortgage Banking Income Up Slightly in Early 2021
April 30, 2021
A group of 21 banks reported a combined $3.75 billion in mortgage banking income for the first quarter of 2021. While that was a modest 1.7% gain from the fourth quarter, it represented a huge 63.3% gain from the first three months of last year. (Includes data chart.)
Affordable Housing Advocates Criticize Housing Goals
April 30, 2021
Critics argue that the goals, as currently structured, don’t offer much assistance to low- and moderate-income borrowers or mortgagors of color.
MBA Cautions Against Continued Use of Remote Ink Notarization
April 30, 2021
Remote ink notarizations made mortgage closings exceptionally convenient amid the coronavirus, though the MBA suggests that state policymakers should focus on remote online notarization, which is more secure.

More Inside Mortgage Trends

Inside FHA/VA Lending

Sharp Decline in GNMA MBS Delinquency Rates in 1Q21
Ginnie Mae delinquency rates fell across the board during the first quarter of 2021, though still higher than a year ago. Solid growth in the VA market could not offset slumping FHA servicing. (Includes four data charts.)
Secretary Fudge Blames HUD for Housing Inequality
The new HUD secretary said real estate agents also are complicit in creating the homeownership gap by undervaluing properties and not providing buyers the relevant information.
HUD Moves to Restore 2013 Disparate-Impact Theory
The return of the Obama-era rule would acknowledge that there is no room for discrimination in housing.
Prepayments Continue to Drive GNMA Removals
Freedom Mortgage removed $32.1 billion of home loans from Ginnie MBS during the first quarter, mostly due to borrower payoffs. (Includes data chart.)

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Agency Market Sees 1Q21 Drop in Correspondent Share
An increase in the refinance share of agency single-family business led to a decline in the correspondent channel's market share in the first quarter. (Includes two data charts.)
Inside Mortgage Finance
Servicing Market Thinning at the Top, Nonbanks Surge
The fastest-growing segment of the servicing market included companies ranking sixth through 25th in total servicing. Nonbanks gained ground while depositories fell back. (Includes two data charts.
Inside Nonconforming Markets
QM Changes to Help Improve Odds for Non-Agency Players
In the absence of the GSE patch, lenders have fewer incentives to rely on GSE eligibility when determining a loan’s QM status. Still, the final destination of a loan will depend on pricing in the non-agency market.
Inside MBS & ABS
Agency Market Blooms in April with New Monthly Record
Freddie Mac accounted for most of the monthly gain in single-family agency MBS issuance, which rose to $372.9 billion in April, a new all-time high for the market. (Includes two data charts.)
Inside the CFPB
CFPB Puts Regulatory Might Behind CDC Eviction Moratoriums
The bureau issued an interim final rule to ensure tenants are provided with written notice of their rights under the Centers for Disease Control and Prevention eviction moratorium.
Inside The GSEs
Most COVID Borrowers Still Making Payments in 1Q21
Fannie and Freddie reported $83.8 billion of single-family loans in MBS pools under COVID payment-deferral plans. But 91.6% of COVID borrowers were current at the end of March. (Includes data chart.)
Inside FHA/VA Lending
Sharp Decline in GNMA MBS Delinquency Rates in 1Q21
Ginnie Mae delinquency rates fell across the board during the first quarter of 2021, though still higher than a year ago. Solid growth in the VA market could not offset slumping FHA servicing. (Includes four data charts.)

Inside The GSEs

Most COVID Borrowers Still Making Payments in 1Q21
Fannie and Freddie reported $83.8 billion of single-family loans in MBS pools under COVID payment-deferral plans. But 91.6% of COVID borrowers were current at the end of March. (Includes data chart.)
GSE MBS Loan Removals Down Sharply in 1Q21
After spiking in the third and fourth quarters of 2020, GSE repurchases of delinquent loans from MBS pools fell sharply in early 2021. (Includes data chart.)
More Inside The GSEs

After switching to remote work in response to the pandemic, many employed in the mortgage business aren’t showing a sense of urgency to return to offices. What’s your preference?