FBR notes that a key provision in the draft QRM rule is that any mortgage securitized by Fannie or Freddie is automatically a QRM.

PennyMac is once again stepping up to the NPL plate with some major deals. Meanwhile, cash-out refis continue to dwindle.

Residential mortgage production remained fairly strong in the second quarter thanks to an increase in retail-channel originations, which reached an all-time high of 64.6 percent in market share, according to a new analysis and ranking by Inside Mortgage Finance. The surge in retail production appears largely tied to ongoing strength in refinance activity. But lenders that are turning their attention to the purchase-mortgage market should consider that correspondents (34.8 percent) and brokers (22.0 percent) had higher concentrations of purchase loans than retail producers (19.3 percent) during the second quarter, based on Fannie/Freddie activity. Wells Fargo, as usual, continued...[Includes five data charts]

Last week, SunTrust and PNC separately disclosed they are being investigated by agencies of the federal government over some of their mortgage practices as the drive continues to bring enforcement actions in the wake of the financial crisis. For SunTrust, the U.S. government is probing whether it properly processed borrowers’ loan-modification applications under the Home Affordable Modification Program. SunTrust Mortgage “has been cooperating...

The guaranty fee charged to lenders by Freddie Mac has recently fallen significantly lower than the rate charged by Fannie Mae as the government-sponsored enterprise struggles to shore up its share of the GSE market. In the second quarter of 2013, Freddie’s average guaranty fee on new acquisitions was 50.7 basis points. During the same period, Fannie’s average g-fee for new acquisitions was 56.9 bps. In the second quarter of 2012, Freddie’s g-fee averaged 39.8 bps while Fannie’s averaged 40.3 bps. In a statement provided to Inside Mortgage Finance, Freddie said...

Fannie Mae and Freddie Mac posted a combined $15.1 billion in profit during the second quarter of 2013, along with the lowest inventory of repurchase activity since the two government-sponsored enterprises went into government conservatorship and began aggressively enforcing representations and warranties provided by sellers and servicers. As of the end of June, the two GSEs had a combined $5.78 billion in outstanding repurchase demands, a 16.8 percent decline from the first quarter. Although Fannie’s unresolved buyback caseload was...[Includes one data chart]

Any private label mortgage seized through the use of eminent domain will not be eligible for FHA coverage, HUD hints in a new letter.

The IG's evaluation survey found that the total cumulative voluntary attrition rate at Fannie’s capital markets group “increased somewhat” from January 2010 through 2012.

It would appear that the GSE buyback scourge may be winding down. Meanwhile, Fannie Mae has egg on its face over someone it hired.

Fannie sold $2.2 billion of non-agency assets in the first half of the year. Meanwhile, Freddie sold at least $1 billion of non-prime MBS in May.