One of the fastest-growing top-10 originators, loanDepot, this month came to market with a $150 million debt financing deal that portends good things for other firms looking to raise capital in a tough stock market. “The cost of money has really come down for nonbanks,” said consultant Paul Hindman. The privately held loanDepot disclosed...
A total of $333.1 billion of residential MBS backed by freshly originated home loans were issued during the second quarter of 2016, a 30.3 percent increase over the first three months of the year. But that trailed the 34.2 percent surge in primary-market originations during the same period. The result was a further decline in the mortgage securitization rate, from 67.3 percent in the first quarter to 65.3 percent in the second, according to a new Inside MBS & ABS analysis. It marked the lowest securitization rate since 2004, when the non-agency MBS market was just beginning to take off. The biggest decline was...[Includes one data table]
FHA saw a modest rise in originations midway through 2016 compared to the same period last year, but VA did a lot better with a double-digit increase in loan production, according to an analysis of Ginnie Mae data. Lenders delivered $123.0 billion of FHA-insured loans to Ginnie pools during the first half of 2016, up 8.4 percent from the previous year. FHA’s midyear production was driven by a surge in purchase-mortgage lending in the second quarter, which also pushed volume higher for VA as well as conventional-conforming mortgages. Government-backed lending rose 32.3 percent from the first quarter to approximately $131.0 billion in second-quarter originations, according to Inside Mortgage Finance, an affiliate publication of Inside FHA/VA Lending. It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the ... [2 charts]
The Mortgage Bankers Association strongly urged the Department of Housing and Urban Development and the FHA to issue authoritative guidelines for lenders participating in state and local housing finance programs that rely on premium pricing to fund downpayment assistance. In a recent letter to members, the MBA recommended that FHA lenders “tread carefully” and seek legal advice until HUD provides more definitive guidance on downpayment assistance and premium pricing. Lenders should consider carefully whether and when to participate in DPA programs from housing finance agencies that rely on premium-pricing mechanisms, the letter said. The MBA said it would continue to press HUD for clarification on this contentious issue. The FHA and HUD’s inspector general are currently at odds over permissible sources of single-family downpayment assistance offered through housing finance agencies. Although the ...
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