Fannie Mae and Freddie Mac continue to let their holdings of nonprime mortgages gradually taper off, according to a new analysis by Inside Nonconforming Markets. The government-sponsored enterprises held a total of $91.01 billion of nonprime mortgages at the end of September, largely in purchased/guaranteed loans originated before the financial crisis. The holdings were down by 21.2 percent on an annual basis. In the past year, Fannie has ... [Includes one data chart]
Waterfall Asset Management announced that it launched a residential mortgage conduit to focus on partnering with lenders to originate proprietary mortgage products under flow agreements. The conduit aims to purchase prime and near-prime mortgages with relatively high loan-to-value ratios. An affiliate of Caliber Home Loans is preparing to issue a $354.5 million nonprime mortgage-backed security, according to presale reports by DBRS and Fitch Ratings ... [Includes four briefs]
VA mortgage originations fell significantly in the third quarter of 2018 due to a decline in purchase loans and a sharp drop in refinancing from the previous quarter. Rising interest rates and regulatory restrictions were mostly to blame, said lenders. VA production during the third quarter was $40.2 billion, down 21.0 percent from the quarter ago. Volume in the first nine months of 2018 dropped a mere 0.7 percent from the same time period last year. Purchase loans, which comprised 75.3 percent of VA’s guaranty business, were down 12.6 percent. On the other hand, year-over-year production increased 14.0 percent. VA refinance was down 39.0 percent from the second quarter and 18.1 percent on a year-to-date basis. The decline was fueled primarily by an 80.8 percent drop in VA streamline refis or Interest Rate Reduction Refinance Loans from the second quarter. IRRRL endorsements in the third quarter ... [Charts]
Arch Mortgage Insurance led the pack in terms of new insurance written in 3Q18 with $21.43 billion, followed by Radian Guaranty ($15.78 billion), and MGIC ($14.57 billion).
Private mortgage insurers expanded their combined footprint in the primary MI market during the third quarter mostly because of a sharp downturn in VA home loan guaranty activity. [Includes two data charts.]
Although Impac Mortgage Holdings lost $142.8 million over the past two quarters, company management continues to be bullish on its future, laying the groundwork for a further expansion into the non-qualified loan market.
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