Wells Fargo and JPMorgan Chase, the top banks in mortgage banking income, saw significant quarter-to-quarter volatility in 2019. Flagstar pulled itself out of a rut in the fourth quarter but still posted a hefty net mortgage banking loss for the year. (Includes data chart.)
The liquid assets required of nonbank seller/servicers will rise from 3.5 basis points to 4.0 bps for the unpaid principal balance of their enterprise servicing.
The NPL sold by the enterprises had an average delinquency of three years and a loan-to-value ratio of 92%. Fannie accounted for 78,281, or two-thirds, of these sales between Jan. 1 and June 30.
Nonbanks have increased their role in the selling and servicing of Fannie/Freddie mortgages. Nonbanks also sell somewhat riskier loans for which the GSEs are paid higher guarantee fees.
Fannie Mae and Freddie Mac got proportionally more of their single-family business from large-volume sellers in the first quarter, although production was down sharply in every seller category. [Includes two data charts.]
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