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Home Equity Loan Originations Increase by 20% in Second Quarter
October 2, 2026
Originations of home equity loans remain concentrated on HELOCs, which accounted for 80.5% of originations in the first half of this year.
FHFA IG Blasts Budget Cut, Massive Layoffs Likely
October 2, 2026
James Hodge, FHFA’s acting principal deputy inspector general, said the OIG is likely going to have to reduce its staff by upwards of 80% due to the reduced funding and the OIG will cease criminal investigations.
GSE MBS Investors Could Penalize Loans With VS4 Scores
October 2, 2026
Pivot Financial CEO Jennifer McGuinness-Lubbert noted that even though the Federal Housing Finance Agency is treating the scoring models similarly for determining loan-level price adjustments with the GSEs, the secondary market has already seen the pricing grids that Fannie Mae and Freddie Mac developed for VS4.
Fitch Downgrades Wells Fargo’s Servicer Ratings
October 2, 2026
“The rating downgrades reflect Wells Fargo’s continued reduction of its servicing portfolio and strategic shift toward government-sponsored enterprise and owned prime portfolios,” Fitch said.

Agency MBS
GSE MBS Issuance Increases in August
Fannie Mae and Freddie Mac securitizations jumped 11.1% last month, reversing a three-month declining trend. On a year-to-date basis, GSE sales were up 22.5% from the first eight months of 2025. (Includes two data tables.)
Profitability
Mortgage-Banking Profits on Production, Servicing Decline in 2Q
An analysis of earnings reports from 18 lenders showed combined income from production and secondary marketing declined from the first quarter. Servicing income also decreased. (Includes data tables.)
Investors
Banks Shed MBS/ABS From Trading Accounts in 2Q
Bank holding companies reported a 3% decline in trading-account holdings of residential MBS, commercial MBS and ABS in the second quarter. (Includes two data tables.)
Servicing
Rocket, Cenlar Subservicing Portfolios Decline
Rocket’s acquisition of Mr. Cooper and Pennymac’s pending acquisition of Cenlar have prompted some changes in market share. M&T Bank posted a sharp increase in subservicing in the second quarter. (Includes data table.)
Servicing
GSE Share of Servicing Declines Again
The GSEs’ share of servicing topped out at 50.4% in March 2022 and has declined each quarter since then. (Includes two data tables.)
Ginnie Mae Issuance
Ginnie MBS Issuance Down in August as Refi Slide Continues
Refinance volume included in Ginnie Mae mortgage-backed securities slipped for the fourth consecutive month in August as interest rates climbed higher. (Includes two data tables.)

Inside Mortgage Finance

Originations of Home Equity Loans Rise 20% in 2Q
Home equity lending is being fueled by accumulation of equity and elevated interest rates, which have diminished demand for refis. (Includes three data tables.)
FHFA Ends 20-Point Haircut Applied to VS4 Scores
Critics argue that applying the same LLPA pricing grids to VS4 and Classic FICO will camouflage, but not eliminate, the added credit risk associated with the typically higher VS4 score.
- Broeksmit Calls for Lower LLPAs, FHA MIP Cut
- Ginnie Assessing Bifurcation of Servicing Advances
More Inside Mortgage Finance

Inside MBS & ABS

RMBS Market Breaks New Ground: $10 Trillion in June
October 1, 2026
Ginnie Mae and the non-agency MBS sector led residential MBS over the $10 trillion mark in the second quarter. Mutual funds and foreign investors increased their holdings. (Includes two data tables.)
GSE Portfolios Nearly Unchanged in August
October 1, 2026
MBS purchase levels at Fannie Mae and Freddie Mac continue to disappoint lenders looking for help with interest rates, though prospects look better for September reporting.
Secondary Market Slow to Respond to VantageScore 4.0
October 1, 2026
The third-party analytics models used by bond traders now accept VantageScore 4.0 loans, but their methodologies were designed before the confusion around loan-level price adjustment grids.
Non-Agency Securitization Rate Declines in 2Q
October 1, 2026
Interest rates on mortgages increased steadily throughout the second quarter, diminishing demand among non-agency MBS investors to some extent. (Includes data table.)

More Inside MBS & ABS

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Inside Nonconforming Markets

Retail Gains Nonconforming Share From Brokers
September 25, 2026
The retail channel’s share of nonconforming originations increased from the first quarter to the second. (Includes two data tables.)
Credit Score Options Fuel Uncertainty in Non-Agency Market
September 25, 2026
The availability of multiple credit scoring models leaves non-agency players with concerns related to lender choice, disclosures and historical data.
Non-Agency Market Gains Attention as Rates Increase
September 25, 2026
During a LoanNEX webinar, speakers discussed how increasing interest rates allow the non-agency market to step in, with investors driving demand.
ARM Production Rebounds
September 25, 2026
Originations of adjustable-rate mortgages bounced back in the second quarter after a decline in the quarter prior. (Includes data table.)

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

Retail Share Rising in Conventional-Conforming
October 2, 2026
The retail channel accounted for 44.2% of conventional-conforming originations in the second quarter among a large group of survey participants, up from a 41.4% share in the first quarter and a share of 38.9% in the second quarter of 2025. (Includes two data tables.)
Lenders Flocking to Partner With Real Estate Brokerages
October 2, 2026
loanDepot recently partnered with real estate brokerage HomeSmart, adding to the growing list of lenders trying to more closely connect home purchasing with home financing.
Mortgage Lenders Relatively Slow With AI Adoption
October 2, 2026
A study by the Mortgage Bankers Association found that lenders aren’t adopting AI as quickly as other financial services companies.
Lenders Face Risks as AI Availability Expands
October 2, 2026
While AI is offering the mortgage industry many benefits, industry experts caution that it’s also posing new risks, including falsified documents, inaccurate credit decisions and potential disruptions to servicing records.

More Inside Mortgage Trends

Inside FHA/VA Lending

Brokers Lose Market Share Among Government Lenders
Government lending through brokers declined on a quarterly basis in the second quarter while both retail and correspondent production increased. (Includes data table.)
VantageScore Credit Boost Appears Minor With FHA
Some FHA borrowers could see improved credit scores from FHA’s adoption of VantageScore 4.0, but the effect should be relatively small, according to researchers at Goldman Sachs’ credit strategy desk.
Industry Seeks Clarity on FHA’s RAP Pilot
Industry groups urged FHA to make the proposed alternative partial claim structure friendlier for smaller lenders and called for communication with Ginnie Mae investors.
Ginnie ET Issuance Jumps, Delinquencies Elevated
Issuance to Ginnie Mae custom extended-term pools spiked twice in the last year, after FHA and VA changed their loss-mitigation policies. Delinquency rates on the pools are also exceptionally high.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
Retail Share Rising in Conventional-Conforming
The retail channel accounted for 44.2% of conventional-conforming originations in the second quarter among a large group of survey participants, up from a 41.4% share in the first quarter and a share of 38.9% in the second quarter of 2025. (Includes two data tables.)
Inside Mortgage Finance
Originations of Home Equity Loans Rise 20% in 2Q
Home equity lending is being fueled by accumulation of equity and elevated interest rates, which have diminished demand for refis. (Includes three data tables.)
Inside Nonconforming Markets
Retail Gains Nonconforming Share From Brokers
The retail channel’s share of nonconforming originations increased from the first quarter to the second. (Includes two data tables.)
Inside MBS & ABS
RMBS Market Breaks New Ground: $10 Trillion in June
Ginnie Mae and the non-agency MBS sector led residential MBS over the $10 trillion mark in the second quarter. Mutual funds and foreign investors increased their holdings. (Includes two data tables.)
Inside the CFPB
Johnson Nomination as CFPB Chief Moves to Senate Floor
Ahead of the vote, Sen. Elizabeth Warren, D-MA, ranking member of the banking committee, released Johnson’s responses to her Questions for the Record following his nomination hearing in July.
Inside The GSEs
Seller Repurchases of GSE Loans Bounce Up in 2Q
Seller repurchases of defective Fannie/Freddie loans increased 19% from the first to the second quarter of 2026. Although the 2025 book appears to be one of the cleanest in recent years, unresolved buyback claims were up 18% in the second quarter. (Includes three data tables.)
Inside FHA/VA Lending
Brokers Lose Market Share Among Government Lenders
Government lending through brokers declined on a quarterly basis in the second quarter while both retail and correspondent production increased. (Includes data table.)

Inside The GSEs

Seller Repurchases of GSE Loans Bounce Up in 2Q
Seller repurchases of defective Fannie/Freddie loans increased 19% from the first to the second quarter of 2026. Although the 2025 book appears to be one of the cleanest in recent years, unresolved buyback claims were up 18% in the second quarter. (Includes three data tables.)
FHFA’s Shift on VS4 LLPA Grid Prompts Concerns
Analysts worry that FHFA’s aggressive policy moves on credit scores are more about saving consumers money than the safety and soundness of the mortgage system.
More Inside The GSEs

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?