Ginnie Mae this week warned nine VA lenders suspected of engaging in loan churning to each develop a plan to slow the rapid pace of prepayments they have triggered in the agency’s securitized loan pools. According to Ginnie, the issuers were directed individually to deliver correction action plans containing measures that could be deployed immediately to bring prepayment speeds in line with market peers. The agency told issuers they would be barred from multi-issuer pools if they do not come up with a plan. Participation would be allowed only in the agency’s custom pools. The latest action builds off the Ginnie Mae/VA Loan Churn Task Force, which has been working since September to resolve the churning problem. “We have an obligation to take necessary measures to prevent the lending practices of a few from impairing the performance of our multi-issuer securities, and thus raising the ... [ Chart ]
Originations of non-agency jumbo mortgages declined by 17.8 percent on an annual basis in 2017, according to a new ranking and analysis by Inside Nonconforming Markets. The sector lost market share as total mortgage originations declined by 12.3 percent during that span. Jumbo originations were down among most of the top 10 lenders, including banks and nonbanks, with many reporting weaker consumer demand, particularly as refinances became ... [Includes one data chart]
The steadiest source of new FHA and VA loans flowing into Ginnie Mae mortgage-backed securities came from correspondent lending platforms, according to a new Inside FHA/VA Lending analysis. In the fourth quarter, however, correspondent originations declined more than retail and wholesale-broker production. Ginnie last year securitized $115.05 billion of FHA loans that issuers acquired from correspondent lenders. That was down 2.8 percent from 2016, but total FHA loan deliveries dropped 13.9 percent over that period. The correspondent share of the FHA market rose to 48.6 percent last year, a gain of 5.5 percentage points from 2016. FHA loans generated by brokers accounted for 14.8 percent of 2017 activity, up slightly from the previous year. But retail-originated FHA loan volume plummeted 25.5 percent, dropping the channel’s share of the market to 36.6 percent – down from 42.3 percent back in ... [ Chart ]
RSS