A significant but continued decline in GSE refinance activity helped contribute to an overall dip in the volume of single-family mortgages securitized by Fannie Mae and Freddie Mac in October, according to a new Inside The GSEs analysis. Fannie and Freddie issued $67.7 billion in single-family mortgage-backed securities in October, a 13.8 percent decline from September but a 2.9 percent rise for the first 10 months of 2013. Deliveries of refinance loans to Fannie and Freddie have declined steadily since January.
So far this year, Fannie Mae and Freddie Mac have resolved some $30.99 billion of buyback demands through a combination of loan repurchases and indemnifications for the GSEs’ losses, nearly double the $15.66 billion in resolutions recorded during the first nine months of 2012, according to an analysis by Inside Mortgage Trends, an affiliated publication. The figures refer to the unpaid principal balance of loans subject to a repurchase demand, not the actual payment by the lender. Fannie and Freddie reported a combined $3.53 billion of mortgage repurchases and other buyback resolutions during the third quarter of 2013, the lowest quarterly amount in three years.
Mortgage-banking operations owned by banks and thrifts of all sizes reported huge declines in earnings during the third quarter, although some organizations fared significantly better than others, according to a new Inside Mortgage Trends analysis of call-report data. As a group, banks and thrifts reported net earnings of $4.76 billion on their mortgage-banking activity during the third quarter. That was down 41.7 percent from the second quarter, and it marked the lowest three-month ... [Includes one data chart]
Officials at Stonegate Mortgage suggest that the nonbank is primed for growth with plans to acquire a number of small originators that focus on purchase-mortgage production. Stonegate completed its initial public offering of stock in October and raised more than $220 million in equity capital this year, including $124 million from the IPO. Stonegate refers to its growth strategy as “retail tuck-in acquisitions.” The nonbank recently hired a management team to oversee the acquisition of lenders ...
With mortgage origination volume dropping sharply and gain-on-sale margins shrinking, it’s not surprising that the biggest downturn in mortgage-banking income during the third quarter came from production-related activities rather than servicing. A new Inside Mortgage Trends analysis of earnings shows that 10 major lenders reported a total of $1.66 billion in production-related income during the third quarter of 2013. That was down a whopping 62.5 percent from the second quarter. Total mortgage [Includes one data chart]
Many of the big brand names in the mortgage industry have backpedaled from the correspondent and broker market, but a new Inside Mortgage Trends analysis of loan-level Fannie Mae and Freddie Mac data reveals a very deep and diverse group of loan aggregators still remains in the market. During the first nine months of 2013, there were 512 different companies that sold mortgages to the government-sponsored enterprises that had been originated by loan correspondents of mortgage brokers. Some 324 of ... [Includes data chart]
Retail mortgage-production units accounted for 63.0 percent of new originations during the third quarter of 2013, according to a new analysis and ranking by Inside Mortgage Finance. That was up slightly from a 62.8 percent retail share of new production during the second quarter, and it represented one of the highest levels of retail-channel dominance ever. The share of retail originations has soared over the past few years as many major lenders have scaled back their broker and correspondent operations. But all three production channels showed...[Includes four data charts]
Mortgage brokers accounted for 9.6 percent of all loans originated in the the third quarter, one of the lowest readings ever, according to exclusive survey figures from Inside Mortgage Finance.
Tom Popik, research director of Campbell Surveys, said buyers have a number of incentives to pay with cash. “You get about a 10 percent discount on the purchase price,” he noted.
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