While lenders scramble to adapt to the Consumer Financial Protection Bureau’s integrated disclosure rule, the agency has released its long-awaited final rule under the Home Mortgage Disclosure Act, ratcheting up the industry’s data-reporting requirements – and the potential for more fair lending enforcement activity. Among the most significant changes within the 800-page regulation, the final rule modifies which institutions are subject to Regulation C and adopts a uniform loan volume threshold for depository and non-depository institutions. It excludes from institutional coverage firms that did not originate at least 25 closed-end mortgage loans in each of the two preceding calendar years or at least 100 open-end lines of credit in such a time period. The new rule also changes...

Conventional conforming loans accounted for 60.3 percent of the 2014 mortgage market, according to an Inside Mortgage Finance analysis of 2014 Home Mortgage Disclosure Act data. Wells Fargo was the top HMDA lender last year with a 7.9 percent share of the market. HMDA originations include only retail and table-funded broker production and do not include correspondent acquisitions. Wells was the top conventional-conforming lender and the biggest jumbo producer. Quicken Loans was...[Includes one data table]

The non-agency MBS market sputtered to its weakest new issuance volume in a year during the third quarter of 2015, according to a new market analysis and ranking by Inside MBS & ABS. A total of $9.43 billion of non-agency MBS were issued during the third quarter, down 39.7 percent from the second quarter. Thanks to a strong start in the first half of 2015 – and weak new issuance during the same time last year – year-to-date production was up 47.5 percent from the first nine months of 2014. The two mainstays that have been propping up non-agency MBS issuance have been...[Includes two data tables]

Returns on non-agency structured finance products declined in the third quarter of 2015 compared with the previous quarter, according to industry analysts. The shift appears to be due to macro issues as opposed to declining underwriting or performance. “The third quarter wasn’t a particularly happy quarter for non-agencies, with brakes on issuance and pullback in returns,” analysts at Bank of America Merrill Lynch said in a new report. “The latter half of the third quarter was characterized...

Originations of purchase mortgages outpaced refinances in the jumbo market in 2014, according to a new ranking and analysis by Inside Nonconforming Markets of Home Mortgage Disclosure Act data. Some $135.88 billion in jumbo purchase mortgages was reported under HMDA in 2014, accounting for 60.6 percent of loans that exceeded agency conforming loan limits, including those in high-cost markets. In 2013, purchase mortgages accounted ... [Includes two data charts]

Caliber Home Loans is touting its non-agency product line as a way to provide mortgages to borrowers with less-than-pristine credit who cannot qualify for conforming loans. The nonbank is backed by Loan Star Funds, which has raised more than $1.0 billion for funding non-agency mortgages, according to William Pendleton, senior vice president of portfolio lending at Caliber. “We believe we are in the best position of all major lenders to remain on the cutting edge of product ...

Access to advances from the Federal Home Loan Banks have helped Redwood Trust operate its jumbo conduit, including adding to portfolio capabilities, according to officials at the real estate investment trust. Like other REITs, Redwood gained access to FHLBank advances via a captive insurance subsidiary. RWT Financial was approved as a member of the FHLBank of Chicago in the second quarter of 2014. In July, the FHLBank advance financing capacity for Redwood’s subsidiary increased by $400 million to $1.4 billion. “We’ve been able to more efficiently finance

Nonbanks comprised a significant portion of Ginnie Mae business as independent mortgage companies replaced banks as primary securitizers of FHA and VA loans. In the third quarter of 2015, mortgage companies accounted for 60.8 percent of VA loans and 67.1 percent of FHA loans securitized in Ginnie pools. For mortgage companies, production of Ginnie mortgage-backed securities backed by FHA loans increased by 5.0 percent in the third quarter from the previous quarter and was up a whopping 118.1 percent during the first nine months of 2015 over the same period last year. Nonbank securitization of VA loans rose by a modest 1.5 percent quarter over quarter and by 83.6 percent over the nine-month period compared to the same period last year. Megabanks, whose assets exceed $1 trillion, were the second largest issuers of Ginnie Mae MBS, accounting for less than ... [3 charts]

Some observers say the reduction in the annual mortgage insurance premium earlier this year has put the FHA Single Family Mutual Mortgage Insurance Fund on an accelerated path to recovery. Whether that is enough to get the fund back to its statutory 2 percent capital reserve ratio remains to be seen. The FHA is getting stronger faster, said Brian Chappelle, a mortgage industry consultant, in an analysis foreshadowing the FHA’s November actuarial report on the state of the MMIF. Last year’s independent actuary projected FHA’s total loan production in 2015 at $124 billion, but the MIP cut has led to a 60 percent increase in the volume forecast, said Chappelle. In all likelihood, the FHA could be looking at more than $200 billion in total originations this year, he predicted. “When a business lowers its prices, it’s going to make it up in volume,” the consultant noted. “Thus, FHA revenue is going to be ...

The number of VA loans with a deficiency fell in April from March but was up 71.7 percent from the same period a year ago, according to the VA Lender Report Card. The report card includes VA loan reviews and deficiencies by month from April 2014 through April 2015. VA loan originations over the one-year period totaled 563,967, the report showed. Of those loans, 303,149 were purchase loans, 162,447 were streamlined refinances, and 98,371 were cash-out refis. A total of 39,037 loans were reviewed by VA, which comprised about 7.0 percent of total volume. Altogether, 14,793 loans (37.9 percent) had deficiencies. The average deficiency response time was 28.1 days. Of the 1,726 loans the VA examined in April, 613 (35.5 percent) contained deficiencies, down from 1,234 loans (33.7 percent of 3,662 loans reviewed) that were found with flaws in March. The number of deficient loans found in ...