Latest News

Ginnie Sets New Record for Monthly MBS Issuance
November 11, 2019
October was also unusual because the flow of VA loans into Ginnie MBS exceeded the intake of FHA loans. That’s the first month of VA supremacy over FHA since the beginning of 2017 and perhaps in Ginnie’s history.
With Originations Booming, Better.com Promises to Hire 5,000 Military Vets
November 11, 2019
Better.com was founded in 2016 as Better Mortgage with an emphasis on loan origination technology and non-commissioned loan consultants. A few months back, the lender secured $160 million of additional financing.
SEC Seeks to Boost ‘Registered’ Non-Agency MBS Deals
November 11, 2019
Before the financial crisis, the “overwhelming majority” of non-agency MBS fell into the publicly registered category. But after the SEC issued wide-ranging changes to disclosure requirements in 2014, there has been no public issue of non-agency MBS whatsoever…
Incenter, Prestwick Ready New MSR Auctions
November 11, 2019
The portfolio offered by Incenter has 1.2 months of seasoning…

Delinquent loans accounted for 7.37% of FHA mortgages in Ginnie MBS at the end of September, up from 6.98% at midyear. The total delinquency rate for VA loans rose from 3.52% to 3.73% over that period. (Includes four data charts.)

Expanded Credit

Expanded-Credit MBS Jumps, Credit Characteristics Strong

Issuers of expanded-credit MBS have significantly increased deal volume this year without reducing underwriting standards in terms of traditional credit characteristics. Average credit scores for loans in the transactions have actually improved this year.

GSE Risk-Transfer Activity

GSE Risk-Transfer Activity Cools in 3Q19

Freddie Mac's STACR issuance was up solidly in the third quarter, along with its reinsurance program. While Fannie’s CAS production was down, volume will pick up in the fourth quarter. (Includes data chart.)

Servicing

Nonbanks Expand Further in 3Q19 Mortgage Servicing

The top five servicers managed a meager 0.5% increase during the third quarter despite big gains at NewRez and PennyMac. Nonbanks overall posted a 4.4% gain, although a handful of them reported declines. (Includes two data charts.)

Servicing

Freddie Servicing Continues Growing Faster Than Fannie

The fastest growing group of Fannie/Freddie servicers in the third quarter was small and mid-sized mortgage companies, but that's largely because NewRez is not a top-tier originator. (Includes two data charts.)

Servicing Transfers

Bulk MSR Sales Slump in 3Q19, Coissuance Surging

Falling interest rates and surging originations were poor conditions for bulk MSR sales in 3Q19, but coissuance activity was up sharply from the previous period. (Includes three data charts.)

Inside Mortgage Finance

Agency Market Rides Heavy Refi Wave in Third Quarter

Third quarter production of government-insured loans looks like an all-time record, while the conventional-conforming market saw its biggest output since 2003. (Includes two data charts.)

Calabria Raises Eyebrows with GSE Discount Claims

Aside from g-fee pricing, most of the ways the GSEs could engage in volume discounting would take place in the secondary market. That means they’re not really violating regulations.

More Inside Mortgage Finance

Inside MBS & ABS

Agency MBS Market Tacks in October as Refis Swell

November 7, 2019

Continued growth in the refinance market pushed new agency MBS issuance slightly higher in October, offsetting further softening in the purchase-mortgage business. (Includes two data charts.)

SEC Plans to Ease Disclosure Norms for Non-Agency MBS

November 7, 2019

Noting that not a single SEC-registered non-agency MBS has been issued since disclosure requirements were tightened in 2014, the regulator is planning to revisit the standards.

VA Warns on IRRRLs and Fast Prepays, Threatens Action

November 7, 2019

The issue of fast prepays on VA IRRRLs refuses to die. Recently, VA mailed a warning letter to as many as 500 lenders. Inside MBS & ABS obtained a copy of the correspondence.

REIT Sees Opportunity in Non-Agency Multifamily MBS

November 7, 2019

Arbor Realty Trust plans to issue non-agency commercial MBS stocked with multifamily loans that are eligible for sale to the GSEs, expecting better execution for the loans.

More Inside MBS & ABS

Inside Nonconforming Markets

Jumbo Originations Increase in 3Q, Market Share Drops

November 8, 2019

The volume of jumbo originations improved in the third quarter but not as fast as the increase in total originations across the mortgage market, causing the jumbo sector to lose market share. (Includes data chart.)

SEC Reviewing Disclosure Norms for Non-Agency MBS

November 8, 2019

No publicly registered deal has been issued since the SEC tightened disclosure requirements in 2014. However, revisions contemplated by the agency could change all that.

Noncore GSE Business Increases in 3Q Led by Conforming Jumbos

November 8, 2019

The dollar volume of conforming jumbo mortgages included in GSE MBS increased sharply in the third quarter. Other noncore GSE business also expanded. (Includes data chart.)

FHFA Working to Level the Playing Field for Non-Agency Market

November 8, 2019

A strategic plan from FHFA includes proposals to help the non-agency secondary market better compete with Fannie Mae and Freddie Mac.

More Inside Nonconforming Markets

Inside Mortgage Trends

3Q19 Agency Refi Surge Lifts Retail Production

November 1, 2019

In the third-quarter agency purchase-mortgage market, the retail channel generated loans with stronger credit characteristics than third-party platforms. For agency refi business, retail loans tended to have lower credit scores. (Includes two data charts.)

Mortgage Banking Income Soars in 3Q Lending Spree

November 1, 2019

Chase reported a huge increase in mortgage banking income that resulted in part from internal accounting while Wells posted a big decline due to MSR writedowns. (Includes data chart.)

2019 Will Yield $2 Trillion in Loans At Least

November 1, 2019

The Federal Reserve cut rates by 25 basis points this week, assuring mortgage lenders strong operating conditions in the months ahead. Still, the production outlook is a bit darker for 2020.

Flagstar Stands Out Among Banks with Servicing Growth

November 1, 2019

Flagstar increased its servicing portfolio by about 50% on an annual basis as of the end of September while no other bank servicer in the top 20 posted double digit gains.

More Inside Mortgage Trends

Inside FHA/VA Lending

VA Originations Hit Record in Third Quarter

VA lending rose to a record $65.06 billion in the third quarter of 2019 as purchase and refinancing activity surged due to a decline in interest rates. (Includes two data charts.)

Ginnie Sets Monthly MBS Issuance Record in October

Issuers last month produced a record $57.6 billion of Ginnie MBS backed by forward mortgages. While the flow of purchase loans rose modestly, the key growth engine was the refinance market. (Includes two data charts.)

Attorneys Warn FHA Lenders to Stay Alert on FCA Actions

A recent memo from HUD and DOJ appears to have eased the use of False Claims Act in FHA enforcement. However, compliance attorneys warned lenders not to let their guard down.

HUD Wraps Up Several False Claims Act Actions

HUD last month closed the book on several false claim cases, collecting $42.9 million in settlements from three FHA lenders.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends

3Q19 Agency Refi Surge Lifts Retail Production

Inside Mortgage Finance

Agency Market Rides Heavy Refi Wave in Third Quarter

Third quarter production of government-insured loans looks like an all-time record, while the conventional-conforming market saw its biggest output since 2003. (Includes two data charts.)

Inside Nonconforming Markets

Jumbo Originations Increase in 3Q, Market Share Drops

Inside MBS & ABS

Agency MBS Market Tacks in October as Refis Swell

Continued growth in the refinance market pushed new agency MBS issuance slightly higher in October, offsetting further softening in the purchase-mortgage business. (Includes two data charts.)

Inside the CFPB

CFPB Constitutionality Case Halts Enforcement Proceedings

Lower courts have started to put on hold CFPB enforcement litigation, pending a final decision by the Supreme Court on whether the bureau’s single-director leadership structure is constitutional.

Inside The GSEs

Calabria Says One of the GSEs Offered Fee Discounts

A GSE offering volume discounts to its customers? Apparently so, but the disclosure, which came from the FHFA, was light on details.

Inside FHA/VA Lending

Ginnie Sets Monthly MBS Issuance Record in October

With rates staying low and refis at a decent clip, what are your hiring plans for the rest of 2019?