At the very least, MI firms must have $400 million in capital, and $500 million if the company is start-up mortgage insurer.

Marc Savitt, president of the National Association of Independent Housing Professionals, said he is seeing more lenders entering the wholesale channel. Most are nonbanks.

Over the past six months, many nonbanks have moved to sell MSRs as a way to remain cash flow positive in a tough origination market.

The most encouraging sign is that agency volume has been gaining pace. Production increased by 11.4 percent from May to June, with $76.48 billion in gross issuance.

Investors that have bought stock – and debt instruments – in the MIs are anxious about the phase-in period for the capital standards.

The Federal Housing Finance Agency will soon unveil capital rules for private mortgage insurers, introducing a risk-based standard based on loan-to-value ratios and other factors, while requiring parent companies to pledge assets to their MI subsidiaries if necessary, according to officials close to the matter. “Financial strength will be measured by comparing insured risk, on a risk-adjusted basis, against available assets,” said one official commenting under the condition he not be identified. The phrase “available assets” is key because it portends that liquidity must reside at the MI level and not at an affiliate of a parent company. It’s...

The anxiously-awaited Spring surge in purchase-mortgage lending finally arrived at Fannie Mae and Freddie Mac during recent months, according to a new Inside Mortgage Finance ranking and analysis of loan-level data from the two government-sponsored enterprises. The two GSEs issued $141.83 billion of single-family mortgage-backed securities during the second quarter, an encouraging 9.8 percent increase from the dreary levels recorded in the first three months of 2014. During the first quarter of this year, Fannie/Freddie MBS production set a 14-year low of just $129.21 billion. Clearly, the market isn’t...[Includes three data charts]

The Federal Housing Finance Agency agreed to provide guidance to Fannie Mae and Freddie Mac on how to manage the risks arising from their work with nonbank special servicers, the FHFA’s Office of Inspector General said in a report issued this week. The OIG said the FHFA and the government-sponsored enterprises “have responded well to specific problems at nonbank special servicers.” However, it said the FHFA “has not established a risk management process or overall oversight framework to handle some general risks” such servicers pose. The report cites...

Mortgage companies that were hoping to launch initial public offerings this year are putting their plans on hold these days thanks to a weak origination market, according to investment bankers and stock analysts who follow the industry. “It’s deader than a doornail,” said Paul Miller, a senior analyst with FBR Capital Markets. According to Miller, who tracks publicly traded mortgage companies such as Nationstar Mortgage, PHH Corp., and Walter Investment Management, the origination market has...

Agency issuance of single-family MBS rallied during the second quarter of 2014, offsetting a slump in production of non-agency MBS and non-mortgage ABS, according to a new market analysis by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae combined to produce $212.23 billion of single-family MBS during the April-to-June cycle. That was up 13.3 percent from the first three months of 2014, which was the weakest quarter for agency MBS production since the first quarter of 2001. On a year-to-date basis, agency MBS issuance was...[Includes two data charts]