Although several high-profile, publicly traded nonbank servicers are having a tough time turning a profit, non-depository institutions continued to build market share in mortgage servicing during the first quarter of 2016, a new Inside Mortgage Finance ranking reveals. On the whole, mortgage servicing is somewhat stagnant. The top 50 servicers as of the end of March managed a combined portfolio of $7.266 trillion, down very slightly from the previous quarter. Servicing tied to Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities managed a humble 0.2 percent gain in the first quarter, and the non-agency MBS market is still in the doldrums. It remains...[Includes two data tables]

The House of Representatives last week unanimously approved legislation that would require federal agencies to accept private flood insurance for residential properties if it complies with state insurance laws and regulations. Approved by a vote of 419-0, H.R. 2901, the Flood Insurance Market Parity and Modernization Act, would remove regulatory barriers and clarify Congress’ intent to encourage the use of private flood insurance to compete with the National Flood Insurance Program (NFIP). Specifically, the bill lifts certain federal restrictions placed on insurance companies and gives states more flexibility to license and regulate private flood insurance. Under current law, homeowners are limited...

An unanticipated decline in interest rates soured the hedging bets placed by Fannie Mae and Freddie Mac during the first quarter of 2016, leading to sharply lower net income at the two government-sponsored enterprises. The two GSEs booked a combined $7.37 billion in net derivative losses for the first quarter that nearly washed out income from their core businesses. Since 2012, when the two GSEs became profitable again, they have booked huge $23.46 billion in hedging losses. “As we’ve said for over a year now, our quarterly financial results are...

The exam outlook is even worse for nonbank mortgage servicers..

When are falling rates a bad thing? Answer: When you own a ton of mortgage servicing rights.

According to figures compiled by Inside Mortgage Finance, the GSEs have a multifamily market share of 78.3 percent.

SoFi, also known as a “peer-to-peer” lender, said it admires Fannie Mae’s “commitment to technological innovation in mortgages…”

What some bank-watchers may not realize: Most depositories do not factor in personnel and other key expenses when calculating mortgage-banking income…

Walter/Ditech originated $5.0 billion of new mortgages in 1Q16, down 10.7 percent from the previous quarter.

For the past several weeks, speculation was rife that if the yield on the 10-year bond remained under 2.0 percent at March 31 Freddie might book a large hedging loss...