In case you haven’t noticed, the yield on the benchmark 10-year Treasury was at 1.86% as IMFnews went to press compared to 1.46% in early September. That’s a difference of 40 basis points…

Purchase-loan activity increased significantly and continued to account for most agency business.

There was some positive news in the form of originations. Ocwen funded $412.2 million in forward and reverse mortgages in 3Q, declaring that its annualized run rate (based on October production) now totals $2.6 billion.

In 3Q19, PennyMac Financial Services, the nation’s fifth largest home lender, earned a record $121.9 million.

The combined portfolio of the top five servicers actually declined slightly during the third quarter. Megabanks Wells Fargo, Chase and Bank of America shed a combined $26.8 billion during the third quarter, with $20.0 billion of that taking place at Wells. Mr. Cooper Group, the largest nonbank servicer, reported a slight $2.5 billion drop, although its subservicing portfolio grew 2.8% to $310.5 billion.

Happy Holidays from the FHFA: Certain Fannie Mae executives will see a reduction in "deferred" compensation...

Meanwhile, new agency MBS creation remained strong in September at $160.2 billion…

Meanwhile, depository institutions shrank their Ginnie MSR by 1.9% during the third quarter.

And now for the big question: Where do we go from here?

“Despite the interest rate volatility during the quarter, our hedging strategy and portfolio performance resulted in a slight increase to our book value quarter over quarter,” said company CEO Michael Nierenberg. “In the third quarter 2019, origination volume tripled and servicing volume doubled relative to the same period last year.”