The nation’s subservicers increased their contracts to a record high $1.350 trillion at March 31 as tougher regulations continued to play a key role in the shifting of processing chores away from depositories to nonbanks. On a sequential basis, contracts increased by 7.1 percent in the first quarter and 14.4 percent compared to March 31, 2014, according to a new Inside Mortgage Finance ranking. Only four banks – Flagstar, Cenlar, Wells Fargo and Bank of America – were among the top 20 subservicers. Overall, at March 31, subservicers were...[Includes one data table]
Fannie Mae and Freddie Mac completed 65,960 foreclosure-prevention actions during the first quarter of 2015, a slight increase from the previous period, according to a recently released report from the Federal Housing Finance Agency. Of that number, there was a 1.0 percent uptick in the number of loan modifications in the first quarter. The number of completed repayment and forbearance plans rose somewhat faster, by 7.2 percent and 8.2 percent, respectively. The FHFA said...[Includes one data table]
Retail mortgage originations accounted for 61.0 percent of the single-family home loans securitized by Fannie Mae and Freddie Mac during the second quarter of 2015, according to a new Inside Mortgage Trends analysis. That was up from a 58.4 percent retail share during the first three months of the year, and it marked the highest retail share of new Fannie/Freddie business since the … [includes two data charts]
Nonbank seller-servicers continued to claim a larger share of Fannie Mae and Freddie Mac business during the booming second quarter of 2015, according to a new Inside The GSEs analysis.The two GSEs securitized $232.4 billion of single-family mortgages during the second quarter, up 22.3 percent from the first three months of the year. Freddie posted a bigger gain, 28.5 percent, than did Fannie (up 18.0 percent). Nonbank sellers accounted for 46.5 percent of loans securitized by the GSEs during the second quarter. They delivered $107.9 billion to Fannie and Freddie mortgage-backed securities during the period, up 24.7 percent from the first quarter. Among nonbank sellers, the biggest gain was posted by smaller and mid-sized mortgage companies, which accounted for 27.6 percent of GSE second-quarter business.
Guaranty fees as a whole have more than doubled since 2009, from 22 basis points to a record high of 58 bps in 2014, said the Federal Housing Finance Agency in a report released this week analyzing the fees. The 58 bps includes 15 bps of upfront loan-level pricing adjustments and 43 bps as part of an “ongoing fee.”Fees also jumped year-over-year as they were at 51 basis points in 2013. Two FHFA-directed increases in 2012 are the primary drivers for the sizeable increase from 2011, when the average fee was 26 bps, then rose in 2014. Higher fees have been met with strong resistance from originators...
The GSEs benefited from the Consumer Financial Protection Bureau’s free pass on the debt-to-income ratio requirements of the qualified-mortgage rule, resulting in a $132.9 billion increase in business.A new Inside Mortgage Finance analysis of mortgage-backed securities data illustrates that from the beginning of 2014 through the end of the first quarter of 2015, approximately 16.3 percent of the loans securitized by Fannie Mae and Freddie Mac had DTI ratios exceeding 43 percent. In the non-agency world, a qualified mortgage has to have a DTI ratio of 43 percent or less. While the government-insured market has its own QM rules that effectively ignore DTI, a loan eligible for sale to the GSEs is considered...
Residential MBS production continued to gain speed in the second quarter of 2015 while non-mortgage securitization remained strong, according to a new Inside MBS & ABS analysis. A total of $419.42 billion of single-family MBS and non-mortgage ABS were issued during the second quarter, an increase of 21.2 percent from the first three months of the year. It was the strongest new issuance total since the third quarter of 2013 and marked the fifth straight quarterly increase since the market hit a cyclical low at the beginning of last year. Most of the gain came from the agency MBS sector, which totaled $352.73 billion in new issuance, a gain of 29.7 percent from the first quarter. All three agencies posted hefty gains, with the biggest coming at Ginnie Mae, where new issuance jumped 46.7 percent to hit $120.36 billion. A lot of Ginnie’s growth is coming from an unusual surge of refinance activity, which accounted for ... [ charts]
Average MBS guaranty fees charged by Fannie Mae and Freddie Mac last year were 7 basis points higher than in 2013, but the government-sponsored enterprises were less profitable last year, according to the Federal Housing Finance Agency. The average MBS guaranty fee was 58 bps in 2014, the FHFA reported, up from 51 bps in 2013. Both components of the g-fee – the loan-level upfront fee (15 bps) and the ongoing annual fee (43 bps) were up from the year before. For several years, 15-year mortgages had been more profitable for the GSEs than 30-year loans, so the fee hike in December 2012 was designed to even them out by raising the fees more for 30-year loans. But instead of narrowing the gap, 30-year loans were even more unprofitable last year, the FHFA said in its annual report on g-fee pricing released this week. This biggest factor may have been self-inflicted as both GSEs ...
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