The non-agency MBS sector faltered during the third quarter. According to the Federal Reserve, the outstanding supply of non-agency MBS fell another 2.1% from June to $452.17 billion.

S&P has steered clear of the S&D market but still ranked third overall with a 24.4% share of year-to-date non-agency MBS ratings.

According to IMF’s tally, the top five warehouse providers in the third quarter were: JPMorgan Chase ($18.50 billion in commitments), Texas Capital ($7.95 billion), First Tennessee ($7.90 billion), TIAA FSB ($6.50 billion) and Wells Fargo ($6.00 billion).

The supply of one- to four-family mortgage debt outstanding climbed 0.8% from June to reach $11.075 trillion as of the end of the third quarter. It was the highest MDO number since June 2009.

Mat Ishbia of UWM: “We feel great knowing more LOs [loan officers] and consumers are going through the broker channel…”

Wells Fargo posted a 6.5% increase in repurchases from the second quarter, though its year-to-date volume was down from 2018.

Overall, the trading volume in third quarter was the thinnest of the year and 4Q19 could be weaker still.

However, some lenders, including Flagstar Bancorp, are being careful about adding new workers.

GSE purchase-mortgage business cooled off, falling 4.9% from the previous month, but refi volume jumped 13.3% to $70.5 billion in November.

In general, banks and thrifts have been pulling back from the MSR market since 2009...