Will private mortgage insurance firms continue to steal market share from the FHA? It certainly looks that way.

Two Harbors revealed that it sold several billions of dollars’ worth of agency MBS in the third quarter as the assets became less attractive with rising rates. The proceeds will be used to buy MSRs.

Not only is Stonegate Mortgage going public, but it plans to issue jumbo MBS as well.

With the deal, $5.3 billion in mortgage servicer advance ABS will have been issued this year, according to the rating service.

Nonbanks are making progress in picking up market share, but it's uncertain how much more turf commercial banks might cede.

The firm’s deal will be financed with bonds that are expected to have a five-year maturity, a floating-rate coupon and a rating from a major rating service.

Banks have been retaining recent originations of jumbo mortgages in portfolio while selling vintage mortgage servicing rights to nonbanks or entering into subservicing agreements. And with the rise in interest rates, banks have increased their appetite for adjustable-rate mortgages. Banks held $1.76 trillion in first liens in portfolio as of the end of the second quarter of 2013, down only 0.1 percent from the second quarter of last year, according to a new ranking and analysis ... [Includes one data chart]

Appetite for jumbo mortgages among big banks has limited issuance of non-agency jumbo mortgage-backed securities in recent months. And analysts suggest that the next increase in the guaranty fees charged by the government-sponsored enterprises could shift even more production to bank portfolios instead of into non-agency MBS. Certain big banks continue to offer interest rates on jumbos that are below rates on comparable mortgages with conforming balances. For a 30-year fixed-rate non-agency jumbo with ...

Fewer borrowers are using FHA financing, which has enabled private mortgage insurers to take back more market share from the FHA, according to Inside FHA Lending’s analysis of industry data. Borrowers are shying away from FHA due to higher mortgage insurance premiums (MIPs) that took effect early this year and to the new policy eliminating MI cancellation. Private MIs accounted for 36.6 percent of primary mortgage insurance written in the second quarter, their highest level since 2008. This was up from 32.7 percent in the first quarter and from 30.5 percent a year ago. Private MIs also provided coverage on ...

At the end of FY 2013, Congress will be looking at the results of two, separate actuarial audits of the FHA Mutual Mortgage Insurance Fund that may or may not agree with each other’s findings. Nonetheless, the FHA contends it needs a second actuarial opinion on the FY 2013 audit to ensure that the review of the financial condition of the MMI Fund is robust, thorough, consistent, accurate and transparent. “The FHA recognizes the value of having ‘fresh eyes’ on our insurance fund – new perspectives and different analytical models will give us a more ...