Bank and thrift holdings of first-lien mortgages took a relatively rare decline in the first quarter of 2017 as jumbo production stalled during the period, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held a total of $1.93 trillion of first-lien residential mortgages in portfolio as of the end of March, down 0.1 percent from December 2016. The holdings have increased relatively steadily in recent years ... [Includes one data chart]

The Treasury Department last week released a report that called for regulatory reforms aimed to help boost non-agency originations and market share. Many of the reforms relating to the non-agency market could be completed without action from Congress. However, most of them are overseen by the Consumer Financial Protection Bureau, and Treasury’s recommendations appear unlikely to be enacted as long as Richard Cordray is director of the CFPB. Treasury sought input ...

The adjustable-rate mortgage share of total originations increased in the first quarter of 2017 as some borrowers shifted to the product with interest rates projected to increase. An estimated $42.0 billion of ARMs were originated in the first quarter of 2017, according to Inside Mortgage Finance. While production was down by 23.6 percent from the previous quarter, total first-lien originations declined by 33.6 percent during that time ... [Includes one data chart]

Originations of interest-only mortgages by a group of top lenders declined in the first quarter, according to an analysis by Inside Nonconforming Markets. A group of 12 prominent IO lenders originated $6.81 billion of the loans in the first quarter of 2017. The lenders’ production was down by 26.7 percent from the previous quarter and down by 19.9 percent from the first quarter of 2016. According to Inside Mortgage Finance, total first-lien originations ... [Includes one data chart]

The nonprime mortgage-backed security issued by Deephaven Mortgage earlier this month was largely similar to a deal the firm issued in April, save for a greater emphasis on mortgages underwritten with less than full documentation. So-called alternative documentation mortgages accounted for 36.5 percent of the $250.13 million MBS Deephaven issued this month, up from a 17.7 percent share of its $221.14 million issuance in April. Non-agency lenders underwriting mortgages ...

We can only assume Sen. Warner knows Freddie Mac is headquartered in his state, which means the company’s employees are his constituents.

The Atlanta-based Angel Oak hopes to double its sales force this year.

Flanagan once headed Cove Financial, which offered a unique rent-to-own product.

U.S. mortgage borrowers were somewhat less eager to tap the equity they have in their homes during the first quarter, but they have plenty of dry powder in a market that’s expected to continue tilting away from refinance lending. Originations of home-equity lines of credit and closed-end second mortgages fell 5.0 percent during the first quarter to an estimated $46.0 billion, according to a new Inside Mortgage Finance analysis. Compared to the sharp 33.6 percent drop in first-lien production, the home-equity sector virtually glowed. The supply of home-equity loans outstanding fell...[Includes three data tables]

The month of July may very well be do-or-die time for policymakers to decide whether they should delay implementation of the Consumer Financial Protection Bureau’s new reporting requirements under the Home Mortgage Disclosure Act. “Regulators, and particularly members of Congress, don’t understand that if you’re going to delay the rule based on the technology implications of it, you really have to make a decision fairly far out before the rule becomes effective,” said Richard Andreano, a partner with the Ballard Spahr law firm in Washington, DC. He gave his remarks during a panel discussion at the American Bankers Association’s annual regulatory compliance conference, held in Orlando last week. In his judgement, July is...