As first quarters go, the start to 2017 was relatively strong, but total issuance was down sharply from the previous period, a new Inside MBS & ABS analysis and ranking reveals. The market produced a total of $394.08 billion of residential MBS and non-mortgage ABS during the first three months of 2017, an 18.5 percent decline from the fourth quarter of last year. Production, however, was up 23.7 percent from the same period a year ago, and it was the strongest start since the first quarter of 2013, when agency mortgage refinance activity was running white-hot. In 2017, the agency MBS sector is...[Includes three data tables]
Single-family rental operator Invitation Homes expects to enter into its previously announced $1 billion financing agreement with Fannie Mae sometime in the second quarter, using the net proceeds to pay down loans racked up while issuing MBS. According to an update provided in a new 10-K filing with the Securities and Exchange Commission, Invitation – which went public earlier in the year – will “repay all remaining amounts outstanding under our mortgage loan relating to the IH1 2014-1 securitization and approximately $529.0 million of our mortgage loan relating to the IH1 2014-2 securitization.” Grubstaked by The Blackstone Group, IH has been...
Despite rumors to the contrary, Fannie Mae and Freddie Mac forked over most of their fourth-quarter earnings to the Treasury Department at the end of March, as scheduled. But some industry insiders wonder whether the timing of future payments will be altered to reduce the likelihood that either of the government-sponsored enterprises might need another bailout. In early March, there were talks predicting, or hoping for everything from a possible suspension of the Treasury sweep to replacing the quarterly payment with an annual one. Speculation may have been fueled by uncertainty about what the Trump administration wants to do about the now eight-year-old conservatorships of the two GSEs. In 2017, Fannie and Freddie can only retain...
Mortgage-banking income was down on both sides of the business in the fourth quarter of 2016, although the downturn in servicing may be more a matter of unusual results at two large firms. An Inside Mortgage Trends analysis of earnings releases from 13 publicly traded mortgage lenders shows production-related income – including origination fees and secondary market gains – fell 25.1 percent from the third quarter to the fourth. The group earned a combined ... [Includes one data chart]
Single-family business at Fannie Mae and Freddie Mac fell sharply in the first quarter of 2017 and the wholesale-broker channel bore much of the brunt of the decline. The two government-sponsored enterprises issued $218.2 billion in new single-family mortgage-backed securities during the first quarter, a 27.1 percent drop from the final three months of 2016. But a new Inside Mortgage Trends analysis reveals that the supply of mortgages originated ... [Includes two data charts]
Quicken Loans has exhibited strong, consistent profitability in recent years while some other major nonbanks have faltered, according to Moody’s Investors Service. A report the rating service recently published offers a rare glimpse into the profitability of Quicken, Provident Funding Associates and Stearns Holdings, three private nonbanks. They are among nine nonbanks in the mortgage industry that have corporate ratings from Moody’s. “Quicken has strong profitability due to ...
While conventional residential lenders try to figure out how to cut costs in what likely will turn out to be a down year for originations, nonprime firms are headed in the opposite direction – growth. Angel Oak Companies, Atlanta, the largest nonprime lender of 2016 with $700 million of production, this week announced the promotion of four senior managers and plans to double its sales force, which presently numbers 52 account executives. “We’ve already added 16 ...
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