The volume of FHA and VA loans securitized in Ginnie Mae pools in 2017 declined from the previous year, according to an analysis of agency data. FHA loans delivered into Ginnie mortgage-backed securities last year totaled $250.5 billion, down 8.7 percent from 2016. Purchase loans comprised 69.6 percent of Ginnie MBS issuances backed by FHA loans over the 12- month period, while refinances accounted for 24.8 percent. FHA borrowers had an average FICO score of 675.3, suggesting a more traditional borrower base of first-time homebuyers and borrowers with credit issues. The FHA loans that were securitized had an average loan-to-value ratio of 92.8 percent and a debt-to-income ratio of 41.3 percent. California led all states in FHA mortgage securitization, with $39.0 billion for all of last year. FHA originations, however, dropped 16.6 percent year-over-year. The other top states in terms of ... [ charts ]

The CFPB’s impact on the mortgage-backed security market remained a touchy subject at the SFIG Vegas conference last week. MBS investors are encouraged that the bureau is more willing to listen to industry participants, but they have concerns about assignee liability and grim predictions about increased regulation by the states. For a time after the CFPB implemented the TILA-RESPA Integrated Disclosure rule, sales of non-agency mortgages were difficult to complete. TRID includes assignee liability ...

Removing civil public records has little effect on consumers’ credit scores, the CFPB found in the latest quarterly consumer credit trends report issued last week. The National Consumer Assistance Plan required the three nationwide credit reporting companies – Equifax, Experian, and TransUnion – to create minimum standards for personal information and reporting frequency for civil public records, including bankruptcies, civil judgement, and tax liens. The new standards were a product between the credit ...

February was another uneven month in terms of single-family business at Fannie Mae and Freddie Mac.The two GSEs issued a total of $61.04 billion of single-family MBS last month, a 9.5 percent drop from January. A decline in February is not unusual; it’s near the lull in the purchase-mortgage market and has fewer business days. But business levels at the two GSEs were not at all the same. Fannie MBS issuance was down 14.1 percent from January, while Freddie production was up 0.5 percent. Still, month-to-month variation in business flows are common in the GSE market. Fannie and Freddie are also in the process of implementing new capital regimes during the first quarter under the direction of the Federal Housing Finance Agency.

Real estate investment trusts that specialize in residential mortgage credit continued to add to their MBS holdings during the fourth quarter of 2017, according to a new Inside MBS & ABS ranking.

Rising interest rates can be a two-edged sword for MBS-investing real estate investment trusts: prepayment speeds will inevitably fall (the good), while new securities to buy could be in short supply thanks to lower originations in the primary market (the bad).

Ginnie Mae is exploring the possibility of loan-level credit risk sharing with the private sector on FHA-insured loans securitized through the agency, according to a top Ginnie Mae official.

Fannie Mae and Freddie Mac reduced their combined mortgage portfolios to $484.2 billion during the fourth quarter of 2017, according to an Inside MBS & ABS analysis.

Ginnie Mae is considering revising its acknowledgement agreement with mortgage-backed securities issuers and third-party creditors to ensure that nonbank program participants have sufficient liquidity to make timely payments to investors.

FHA and VA single-family originations fell in the fourth quarter of 2017 due to a decline in purchase mortgage originations that was offset somewhat by an increase in refinance business. FHA endorsed $237.3 billion in forward single-family mortgages in 2017 notwithstanding an 11.9 percent drop in the fourth quarter. FHA production also dropped 7.1 percent year-over-year. Market observers attributed the decline in FHA originations to high mortgage insurance premiums, stiffer competition from private lenders’ low-downpayment programs, and a more aggressive conventional-conforming mortgage market. A new analysis by Inside Mortgage Finance also found that government-backed lending and the jumbo market saw the biggest production declines from the prior quarter. In particular, IMF’s research found that FHA, VA and U.S. Department of Agriculture rural-housing originations fell ... [Charts]