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.

A publicly traded real estate investment trust is the buyer of Fannie Mae MSRs offered by CashCall, investment banking sources said.

Mortgage industry officials note that the size and complexity of the disclosure rules and other regulations taking effect in January will cause huge operational and system challenges.

At the closing of the sale of Crossline, $500,000 will be held back to cover the CEO's indemnification obligations.

Mortgage lenders will have until Aug. 1, 2015, to implement the new integrated mortgage-disclosure forms and related rule issued by the Consumer Financial Protection Bureau this week. The new forms will replace the existing federal disclosures under the Real Estate Settlement Procedures Act and the Truth in Lending Act. Bureau officials hope they will help consumers better understand their options, choose the deal that’s best for them, and avoid costly surprises at closing. The new, three-page loan estimate form will be provided...

Private-equity firms such as Pershing Square Capital Management and Fairholme Funds are gobbling up the common and preferred shares of Fannie Mae and Freddie Mac, a trend that may continue as long as the two stay profitable and Congress dithers with how to end their conservatorships. “There’s some value there,” said Brian Harris, a senior analyst with Moody’s Investors Service. “The hedge funds believe the two will continue to earn money.” Industry observers who closely follow the government-sponsored enterprises predict...