Issuance of mortgage securities backed by USDA loans dropped during the first three months of 2018. Approximately $4.03 billion of rural housing loans with a USDA guarantee were delivered in Ginnie Mae MBS during the first quarter, down 18.3 percent from the previous quarter. Agency data also showed an 11.7 percent decline in USDA securitization volume from the same period a year ago. Rural housing loans accounted for 1.5 percent of all loans securitized in Fannie Mae, Freddie Mac and Ginnie Mae pools and 2.8 percent of loans with private or government-backed mortgage insurance. Purchase loans comprised the bulk of USDA loans that were delivered into Ginnie MBS pools. PennyMac knocked Freedom Mortgage out of first place with a total of $753.3 million in securitized USDA loans despite a 10.4 percent decline in production. Freedom Mortgage accounted for $523.3 million of USDA loans pooled in ... [Charts]

Wells Fargo ranked first among non-agency jumbo originators, followed by Chase and Bank of America…

In the first quarter, average credit scores on purchase mortgages were virtually unchanged…

By comparison, commercial banks must have tier 1 capital of 8.0 percent of risk-weighted assets.

Mortgage brokers actually gained some share in the government market…

Banks have been reducing their servicing for others since late 2009…

The AAF warns against the GSEs becoming private entities again, noting there’s no way for them to raise enough capital…

A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]

Industry groups and lawmakers have turned their attention to the GSEs’ pilot programs and how they’re being implemented. Many argue that as of late, pilot programs such as recent initiatives involving mortgage insurance and home rentals are being launched without much transparency.This week, the Mortgage Bankers Association penned a letter to the Federal Housing Finance Agency recommending the regulator increase the level of transparency for new products and activities the GSEs take on. The trade group noted it’s concern about new initiatives which raised “significant” questions as whether they have the public’s best interest in mind. There’s also some unease about Fannie Mae and Freddie Mac possibly infringing on the primary market.

Industry insiders are continuing to play the speculation game regarding who might replace Mel Watt as director of the Federal Housing Finance Agency, a position that holds immense power given the role Fannie Mae and Freddie Mac play in the housing market. So far, analysts and lobbyists have identified a handful of potential candidates who might replace the director when his five-year term ends early next year, including Treasury counselor Craig Phillips; Mark Calabria, chief economist to Vice President Mike Pence; and Michael Bright, EVP of Ginnie Mae, among others. Another candidate who has been mentioned is Comptroller of the Currency Joseph Otting, who was sworn into that post in late November of last year.