Mortgage lenders harvested a landmark crop of purchase-money mortgages during the second quarter, fueled partly by continuing growth in the first-time buyer segment, according to a new ranking and analysis by Inside Mortgage Finance. An estimated $307.0 billion of purchase loans were originated in the second quarter, up a stunning 49.8 percent from the first three months of the year. That was the highest quarterly volume for purchase-mortgage lending since the third quarter of 2006. Purchase loans accounted for 67.5 percent of the estimated $455.0 billion in first-lien mortgage originations during the April-June cycle, the highest such share since at least 2003. First-time buyers contributed...[Includes three data tables]

An affiliate of Bayview Asset Management issued a $230.0 million non-agency mortgage-backed security this week largely stocked with seasoned mortgages, including one non-qualified mortgage. DBRS and Fitch Ratings placed AAA ratings on Bayview Mortgage Fund IVc Trust 2017-RT3, without putting much emphasis on the non-QM. Non-QMs had accounted for 2.1 percent of a $125.82 million MBS from Bayview that priced in July and 1.0 percent of a $208.13 million deal it priced in April. The sponsor of the deal will retain...

Redwood Trust is preparing to issue its first non-agency mortgage-backed security backed by “expanded prime” mortgages. In the second quarter, Redwood acquired approximately $240.0 million of such mortgages, which have somewhat looser underwriting standards than what’s typically seen in the jumbo MBS market. Clayton Holdings reviewed 417 mortgages for the planned issuance, according to documents filed Aug. 30 with the Securities and Exchange Commission. The total unpaid principal balance of the loans wasn’t disclosed. The deal will include...

First-time homebuyers accounted for $170.3 billion of securitized purchase mortgages during the first half of 2017, according to an Inside FHA/VA Lending analysis of loan-level data for mortgage-backed securities issued by Ginnie mae, Fannie Mae and Freddie Mac. Purchase-mortgage origination to first-time homebuyers was up 15.7 percent year-over-year and comprised 50.3 percent of total purchase-mortgage loans securitized during the six-month period. FHA accounted for 36.8 percent ($61.4 billion) of first-time homebuyer purchase mortgages delivered into agency pools from beginning to midyear, while conventional purchase mortgages with private mortgage insurance accounted for 28.3 percent ($48.3 billion) over the same period. FHA and private MI are the two leading mortgage insurers for first-time homebuyers. Together, they have provided mortgage insurance for nearly ... [Charts]

As Hurricane Harvey’s floodwaters recede, federal agencies that provide guarantees on mortgages are faced with the daunting task of identifying and assisting borrowers with government-backed mortgages in disaster-stricken areas of Texas. FHA, VA, the U.S. Department of Agriculture’s Rural Housing Service and Ginnie Mae have issued special relief guidance for approved lenders following Hurricane Harvey. The FHA has issued guidance to remind lenders and servicers that FHA-insured mortgages secured by properties in a presidentially-declared major disaster area are subject to a 90-day moratorium on foreclosures following a natural disaster. FHA also provides lenders an automatic 90-day extension upon expiration of the moratorium to begin or re-start foreclosure action or evaluate the borrower’s need for loss mitigation. In addition, FHA urged servicers to brush up on the 203(h) and the ...

Ginnie Mae Spokesperson Leaves Agency. Cynthia Adcock, director of communications and congressional relations at Ginnie Mae, will no longer be with the agency effective Sept. 4, 2017. Adcock will assume similar duties and responsibilities as a director with the Federal Housing Finance Agency. Michael Huff will handle media inquiries related to Ginnie Mae and congressional matters. FHA Lenders Settle Alleged Violations of FCA, FHA Requirements. The Department of Housing and Urban Development’s Office of the Inspector General recently announced receipt of $44.3 million from separate settlements with two FHA lenders. The settlements resolve allegations of fraudulent claims and violation of FHA requirements against Financial Freedom of Austin, TX, and Prospect Mortgage of Sherman, Oaks, CA. On May 16, 2017, Financial Freedom, an FHA servicer, agreed to pay the ...

Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $41.95 billion of collateralized mortgage obligations backed by single-family MBS during the second quarter, according to an analysis and ranking by Inside MBS & ABS. Agency CMO issuance was down 17.2 percent from the first three months of the year, with Freddie taking the biggest hit – a 30.9 percent drop in production. Ginnie had the smallest quarterly decline, 5.1 percent. On a year-to-date basis, all three agencies are...[Includes one data table]

The Structured Finance Industry Group pushed for trustees of non-agency MBS to increase disclosures to investors as the industry continues to deal with the aftermath of Wells Fargo withholding millions of dollars of funds in vintage deals. In a statement released late last week, the industry group said it has a policy of not engaging in issues involving legacy transactions that may be associated with litigation, especially where such litigation is between various members of SFIG. The Wall Street group issued...

Real estate investment trusts that invest in MBS and other mortgage-related assets are having a field day this year, raising billions of dollars in new capital while seeing their share prices increase across the board. Moreover, according to an analysis by Inside MBS & ABS, several top-ranked REITs are now trading much closer to their 52-week highs than their lows while maintaining hefty dividend payments to their shareholders. Annaly Capital Management, for example, the largest holder of agency MBS at $75.2 billion, is...

Fitch Ratings announced last week that non-agency MBS with a unique structure will be eligible to receive AAA ratings. The rating service said deals with a shifting-interest structure are now eligible for the top ratings after previously limiting ratings on such deals to single-A. Both DBRS and S&P Global Ratings have assigned AAA ratings to some MBS backed by re-performing mortgages where the deals had shifting-interest structures. MBS with such structures distribute...