The residential MBS issued in 2013 equaled 78.5 percent of primary market originations, the highest securitization rate since 2010, according to a new Inside MBS & ABS analysis. The mortgage securitization rate typically moves higher when primary-market originations are declining because of the time lag between loan closing and MBS issuance. Last year started with a bang – $560 billion in new originations – and ended with a whimper, $305 billion. In the conventional conforming market, Fannie Mae and Freddie Mac MBS issuance – even after excluding loans that were more than three months old when they were securitized – represented...[Includes one data chart]
Originations of jumbo mortgages significantly outpaced originations of other first-lien mortgage types in 2013, according to a new ranking and analysis by Inside Nonconforming Markets. Banks continue to dominate the market for jumbos, both with their own originations and via acquisitions of production from lenders that might otherwise have delivered their production to jumbo mortgage-backed security issuers. An estimated $272.0 billion in non-agency jumbos ... [Includes one data chart]
Investors would be more willing to buy AAA tranches of jumbo mortgage-backed securities if issuers would standardize their offerings, according to Michael Stegman, counselor to the Treasury Department on housing finance policy. While the Treasury and industry participants both currently have initiatives aimed at standardization, issuers haven’t been too willing to seek uniformity. In a speech last week, Stegman said that based on recent meetings with jumbo MBS participants ...
Bipartisan legislation in the Senate to reform the government-sponsored enterprises would maintain the high-cost conforming loan limits, according to a summary of the draft bill released this week. The bill signals a shift as other GSE reform efforts in Congress have contemplated a gradual reduction of high-cost conforming loan limits. Leaders of the Senate Committee on Banking, Housing and Urban Affairs announced this week that they reached an agreement on what will be included ...
Nationstar Mortgage joined Ocwen Financial last week under the glare of the New York Department of Financial Services’ spotlight. Ben Lawsky, superintendent of the NYDFS, said the state regulator has received hundreds of complaints about Nationstar’s practices, including problems with loan modifications, improper fees and lost paperwork. “Our department has significant concerns that the explosive growth at Nationstar and other nonbank servicers may create capacity issues ...
Fannie Mae and Freddie Mac sold some nonprime mortgage-backed securities during 2013 even though the government-sponsored enterprises have seen strong returns on these holdings in recent quarters. The GSEs held a total of $84.61 billion in nonprime MBS as of the end of 2013, according to a new analysis by Inside Nonconforming Markets. The holdings declined by 18.2 percent compared with the end of 2012 due to a combination of ... [Includes one data chart]
The Chinese Year of the Horse welcomed the FHA with a hard kick in the head as total originations fell 20 percent in January from December 2013. Even as rising interest rates slowed refinancing activity last year, the expected increase in purchase-mortgage lending barely materialized and, in fact, appears to be dropping off. Lenders reported $8.7 billion in new originations in January, down from $10.9 billion in December and $23.7 billion from a year ago. Most were fixed-rate mortgages and 77.1 percent were purchase transactions. Three of the top five FHA lenders – Quicken Loans, JPMorgan Chase and LoanDepot – reported purchase origination totals below 40 percent. Top-ranked Wells Fargo and Bank of America each reported 64.0 percent of total FHA originations as purchase transactions. Wells Fargo closed the month with $519.0 million despite a ... [2 charts]
Last week, Lawsky noted that Nationstar’s portfolio more than doubled between the end of 2012 and the end of 2013. He asked the nonbank servicer to provide the number of full timers in each unit as well as the number of loans per employee.
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