FHA/VA originations through the correspondent channel increased by 48.5% during the third quarter, bringing the channel's market share to 31.3%.

The pencil sharpening represents a 13.8% jump from the $3.4 trillion Fannie predicted just month ago, and 88.8% more than the $2.06 trillion in originations the GSE forecast in January, before the advent of the coronavirus pandemic.

Lenders expect originations to increase in the fourth quarter along with strong profits.

Fannie economists say surging refinance volumes remain the driving force in the housing market...

In addition, Fannie and Freddie have helped reduce face-to-face interactions during the closing process by expanding the use of powers of attorney and remote online notarizations.

With strong refinance demand, low rates and solid housing sales for this time of year, 2019 could end up as the best year since 2006, when originations totaled $2.550 trillion.

Brokers recorded a hefty 69.3% increase in government lending from the first to the second quarter, boosting their share of the sector to 21.4%.