FHA originations rose significantly in the first quarter of 2016 from the same period last year even as VA loan production decreased slightly, according to an analysis of Ginnie Mae data. Lenders delivered $54.4 billion of FHA-insured loans to Ginnie Mae for securitization during the first three months, up 36.2 percent from the previous year. In contrast, the volume of VA loans securitized over the same period, $35.0 billion, fell 1.5 percent compared to the same period a year ago. A strong purchase-mortgage market drove FHA activity from January to March. The reduction in FHA’s annual insurance premium in January 2015 continued to have an impact on FHA’s purchase-loan market share. In 2015, FHA purchase originations accounted for $151.0 billion of the estimated $881.0 billion in total purchase originations (conventional and government single-family forward originations), according to ... [ 2 charts ]

While uncertainty persists regarding TRID, KBRA said it only slightly increased its loss expectations on Redwood’s planned jumbo MBS.

The FDIC said that acting as a receiver of the failed banks it “may professionals and entities whose conduct resulted in losses to those institutions…”

Fannie Mae said the result is that potential buyers may be wrongly disqualifying themselves before they even apply for a mortgage…

Chimera retained about 15.0 percent of all three of the non-agency MBS...

There are about 75 correspondent buyers in the market today, but that figure will winnow down to about 60 as margins stay tight...

Although statistics are hard to come by, Mid America believes it is one of the most active buyers of such mortgages, most of which are nonconforming jumbos.

The share of new home mortgage originations packaged into MBS drifted slightly lower in the first quarter of 2016, a new Inside MBS & ABS analysis reveals. Some $255.7 billion of newly originated mortgages were pooled in MBS in the first three months of the year, representing a paltry 67.3 percent of the estimated $380 billion of first-lien originations in the primary market. For the purposes of calculating securitization rates, loans aged more than three months and modified loans are excluded from agency MBS issuance figures. Fannie Mae and Freddie Mac securitized...[Includes one data table]

It was thought that with the Consumer Financial Protection Bureau working on a new regulation to clarify key portions of the TRID integrated-disclosure rule and assignee liability that the scratch-and-dent market in TRID-defective loans would grind to a halt. But that’s not how it’s turned out. According to investors in “S&D” TRID mortgages and traders who play in the space, auctions of mortgages with errors (of all sorts) have continued...

Let's face it: most banks are just chicken to hold mortgages in portfolio unless they're jumbos...