Latest News

Underwriter Shortage Gets Serious as ‘Raids’ Heat Up
October 27, 2020
Fearful your best underwriters might get poached? You're not alone...
Latest Lenders to Re-enter the Non-QM Space: First Guaranty, New Rez
October 27, 2020
First Guaranty Mortgage Corp. restarted its Maverick non-QM program and New Residential Investment plans to resume non-QM lending shortly.
Amid the Pandemic, Consumer Complaints Reach an All-Time High
October 27, 2020
The top three in the complaint category: Experian, Transunion and Equifax...
Forbearance Reading Declines but Trouble Remains for Ginnie, PLS
October 26, 2020
On Friday, Black Knight Financial released its forbearance tally, saying cases declined by 11,000 units for the seven-day period, ending October 20. Roughly, three million mortgagors remain in active COVID-related relief programs, the analytics firm noted.

Sales
Nonbanks and Smaller Firms Growing GSE Market Share
Fannie and Freddie issued a whopping $705.7 billion of single-family MBS during the third quarter, smashing a record that had been on the books for 17 years. (Includes two data charts.)
Characteristics
GSE Sellers Harvest Low-Hanging Fruit in 3Q20
The shift to lower-risk loans was particularly pronounced in the GSE refinance market, where streamlined property valuation was available for many mortgages. (Includes two data charts.)
Non-Agency MBS
Non-Agency MBS Issuance Rebounds from COVID
Prime jumbo MBS production posted the biggest increase of any sector, rising 177% from the second quarter, while ECM securitization was up 14% in the third quarter. (Includes three data charts.)
Servicing
Servicing Market Shifts to GSEs, Default Rates Ease
The rapid growth in Freddie servicing during the third quarter stood in marked contrast to an unusual decline in the Ginnie market. Loan performance continued to improve. (Includes three data charts.)
Ginnie Mae Issuance
Ginnie MBS Buyouts Slow in August as Payoffs Decline
The volume of Ginnie single-family MBS outstanding peaked in June and retreated slightly in July and August. The slippage has been in FHA loans. (Includes two data charts.)
Securitization
Prime Non-Agency MBS Issuance Rebounds in 3Q
Issuance of prime non-agency MBS more than doubled in the third quarter. Thanks to new production, expanded-credit MBS remained the top source of non-agency MBS, though issuance is slowing. (Includes data chart.)

Inside Mortgage Finance

3Q20 First-Lien Originations Near All-Time Record
The year 2020 is on the edge of greatness as third-quarter mortgage originations climbed to $1.14 trillion, just shy of the all-time record set 17 years ago. (Includes two data charts.)
FHFA Moves to Clamp Down New GSE Products, Activities
A new rule proposed by the FHFA this week would ensure Fannie Mae and Freddie Mac “stay focused on their core mission and do not stray into business the market already serves well” after they exit conservatorship.
- CFPB Extends QM Patch Beyond Early Next Year
- Underwriter Wars Heat Up, ‘Raids’ A Plenty?
More Inside Mortgage Finance

Inside MBS & ABS

ABS Market Roars Back in Biggest Post-Crisis Quarter
October 22, 2020
Auto-loan securitization remained the biggest ABS sector, but business-finance deals recorded the biggest third-quarter increase. Delta’s air-mile deal set the pace. (Includes two data charts.)
Uptick in Delinquencies on Auto ABS a Worrying Sign
October 22, 2020
Delinquencies in auto securitizations increased in August, the first uptick in five months. But losses were at record low levels during the month.
Another Week, and More Note Offerings by NBs
October 22, 2020
Mortgage firms continue to court the debt market with note offerings. The latest deals come from loanDepot, Starwood and PennyMac Financial.
Standing in the Way of Huge GSE Earnings: Not Much
October 22, 2020
What might the GSEs earn in the third quarter? Based on their securitization volume, it should be a ton. Just subtract the COVID hit.

More Inside MBS & ABS

Poll

Inside Nonconforming Markets

Expanded-Credit MBS Characteristics Shift in 3Q
October 16, 2020
The share of mortgages for investment properties in expanded-credit MBS increased during the third quarter along with average credit scores. The age of loans going into securitized deals is also rising. (Includes three data charts.)
Non-Agency Aggregation Business Booming at Maxex
October 16, 2020
Maxex has aggregated more than $10 billion worth of product between its founding in 2016 and September of this year. More than $3 billion flowed through the firm’s exchange in the third quarter alone.
Sterling Internal Review Reveals Staff Misconduct
October 16, 2020
Originating non-QMs didn’t work out so well for Sterling Bank. After finding compliance issues, the bank ended its non-QM program and started to repurchase loans sold into MBS.
A&D Mortgage Affiliate Stands Out With its First Non-QM MBS
October 16, 2020
Imperial Fund, an affiliate of A&D Mortgage, issued its first non-QM MBS this week. Loans in the deal are concentrated in Florida and more than 15% went to foreign nationals or non-resident aliens.

More Inside Nonconforming Markets

Videos

Inside Mortgage Trends

MSR Transfers Stall in 3Q20, Ginnie Trades Nearly Dead
October 23, 2020
The strongest pulse in the secondary market for MSR was in coissuance transactions involving Fannie and Freddie servicing rights. Bulk deals continue to struggle. (Includes three data charts.)
Banks Report 3Q20 Surge in Mortgage Banking Income
October 23, 2020
Wells Fargo's huge increase in mortgage-banking income accounted for nearly all the gain reported by 19 publicly traded banks. Still, the second and third quarters of 2020 were incredibly lucrative for mortgage banking platforms. (Includes data chart.)
SFR Player Front Yard to be Taken Private
October 23, 2020
Pretium Partners and a unit of Ares Management will acquire Front Yard Residential in a deal valued at $2.4 billion. The move follows recent complaints from shareholders regarding mismanagement.
Servicers Step Up Efforts to Contact Distressed Borrowers
October 23, 2020
Industry trade groups are joining hands with nonprofits to develop an outreach campaign to address distressed borrowers who have avoided making contact with their servicers.

More Inside Mortgage Trends

Inside FHA/VA Lending

Ginnie Market Surging in 3Q20 But FHA Sector Lags
Nonbanks continued to broaden their footprint in the Ginnie market even though top players like Quicken, United Shore, Mr. Cooper and AmeriHome recorded declining sales in the third quarter. (Includes four data charts.)
Top FHA Lender Freedom Likely to Stay Private
Public ownership isn’t for everyone. Just ask FHA-direct giant Freedom Mortgage of Mt. Laurel, NJ.
Wells Fargo Makes Big Bet on Ginnie EBOs. Others?
Thanks to high forbearance readings and escalating delinquencies, Wells Fargo is once again playing the Ginnie buyout game. It’s not alone.
Many Borrowers Not Seeking Forbearance Extension
Nearly two-thirds of borrowers who exited forbearance remain current on their payments and have been able to resume pre-pandemic monthly payments, according to the MBA.

More Inside FHA/VA Lending

Premium Newsletter Content

Inside Mortgage Trends
MSR Transfers Stall in 3Q20, Ginnie Trades Nearly Dead
The strongest pulse in the secondary market for MSR was in coissuance transactions involving Fannie and Freddie servicing rights. Bulk deals continue to struggle. (Includes three data charts.)
Inside Mortgage Finance
3Q20 First-Lien Originations Near All-Time Record
The year 2020 is on the edge of greatness as third-quarter mortgage originations climbed to $1.14 trillion, just shy of the all-time record set 17 years ago. (Includes two data charts.)
Inside Nonconforming Markets
Expanded-Credit MBS Characteristics Shift in 3Q
The share of mortgages for investment properties in expanded-credit MBS increased during the third quarter along with average credit scores. The age of loans going into securitized deals is also rising. (Includes three data charts.)
Inside MBS & ABS
ABS Market Roars Back in Biggest Post-Crisis Quarter
Auto-loan securitization remained the biggest ABS sector, but business-finance deals recorded the biggest third-quarter increase. Delta’s air-mile deal set the pace. (Includes two data charts.)
Inside the CFPB
CFPB Extends Temporary QM ‘Patch’ for GSE loans
The new expiration date will be tied to the mandatory compliance date for the revised general QM rule, or when the GSEs exit conservatorships, whichever comes first.
Inside The GSEs
Small Fry Continue to Grow In GSE Servicing Market
Four of the top five players in Fannie/Freddie servicing recorded declines in their portfolio during the third quarter, while small and mid-sized shops gained ground. (Includes two data charts.)
Inside FHA/VA Lending
Ginnie Market Surging in 3Q20 But FHA Sector Lags
Nonbanks continued to broaden their footprint in the Ginnie market even though top players like Quicken, United Shore, Mr. Cooper and AmeriHome recorded declining sales in the third quarter. (Includes four data charts.)

Inside The GSEs

Small Fry Continue to Grow In GSE Servicing Market
Four of the top five players in Fannie/Freddie servicing recorded declines in their portfolio during the third quarter, while small and mid-sized shops gained ground. (Includes two data charts.)
Calabria Seeks to Limit Activities of the GSEs
The FHFA director has proposed a new rule that would ensure stakeholders have a say when the GSEs consider new products or activities.
More Inside The GSEs

Year-to-date primary market originations volume stood at $2.79 trillion through 9M20. With one quarter left to go, do you think 2020 will beat 2003’s record of $3.725 trillion in first-lien originations?