The agency servicing market grew steadily in the first quarter of 2017, as the business continued to slide toward nonbanks, a new Inside Mortgage Finance analysis reveals. The Federal Reserve late last week reported that total residential mortgage debt outstanding rose 0.7 percent during the first quarter, hitting $10.330 trillion. It marked the eighth consecutive quarterly increase since the sector hit its post-crash low in March 2015 at $9.912 trillion. Most of the growth came from the agency market, although portfolio holdings – including nonbanks – were...[Includes two data tables]
Ginnie Mae securitization of single-family mortgage securities backed by USDA loans fell in the first quarter of 2017. One-time leader Chase Home Finance was in fifth place after a whopping 31.6 percent decline in USDA activity and an even larger 87.4 percent drop year over year. A total of $4.6 billion in USDA loans were securitized in Ginnie Mae pools during the first three months of 2017, down 9.5 percent from the previous quarter. On the other hand, year-over-year securitization of USDA home loans rose 17.6 percent. Top-ranked Freedom Mortgage and 7th-ranked Ditech Financial each reported a tenfold increase in USDA volume year over year. Freedom Mortgage led the market with $887.3 million despite a 20.4 percent decline from the prior quarter Second-ranked PennyMac closed the quarter with $661.6 million of securitized USDA loans, while Wells Fargo reported a 9.3 percent decrease to ... [Chart]
Ginnie Mae is sailing without a captain, a fact that is causing some concern among mortgage bankers and mortgage-backed securities investors. The agency tasked with securitizing government-backed mortgages has been without a president since Democrat Ted Tozer left on Jan. 20, 2017, the same day that President-elect Donald Trump was sworn in as the 45th president of the United States. Since that time, Nancy Corsiglia, a career Ginnie official, has been acting president. She was elevated from her position as chief operating officer. Industry officials who claim to have knowledge of the selection process maintain that mortgage banke David Kittle, president of the Mortgage Collaborative, is the leading candidate to fill the post with Michael Bright, a director at the Milken Institute, a close second. One source close to the situation claimed that background checks by the Trump White House are likely ...
Agency issuance of single-family MBS posted a solid, if unspectacular, gain from April to May, according to a new Inside MBS & ABS ranking and analysis. Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $98.52 billion of single-family MBS last month, up 4.1 percent from their April volume. Monthly production in 2017 still hasn’t caught up to the $134.21 billion issued in January but, on a year-to-date basis, it’s running about 5.3 percent ahead of the pace set in the first five months of last year. The story in 2017 has been...[Includes two data tables]
June is shaping up to be a strong month for the non-agency MBS market with a handful of new deals that reflect the character of the sector: a reliance on scratch-and-dent transactions mixed with an emerging nonprime component and opportunistic prime jumbo issuance. Five non-agency MBS totaling $1.90 billion hit the market in the first week of June, with three S&D deals accounting for $1.30 billion of the total. The biggest of these was...
The House of Representatives late this week passed H.R. 10, the Financial CHOICE Act, which would undo a number of changes to the secondary market and to the regulatory landscape that were ushered in by the Dodd-Frank Act. As previously reported, among these are the elimination of the Dodd-Frank risk-retention requirements for ABS other than residential mortgages. Another provision would enable the president to remove the director of the Federal Housing Finance Agency before the end of the director’s appointed term, with or without cause. It also would make...
When it comes to price performance, it’s been an ugly couple of years for mortgage stocks, particularly for struggling lender/servicers such as Ocwen Financial, PHH Corp., and Walter Investment Management Corp. In a nutshell, it’s been impossible for many firms to go public or issue additional shares, though there have been exceptions, such as the MBS-investing real estate investment trusts and Impac Holdings. But now there’s talk that some larger nonbanks, and even some smaller players, might be able to issue corporate bonds. According to investment banking advisors, one trend that favors such a development is...
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