A bird's-eye view suggests retail originations had higher credit scores and lower DTI ratios than loans produced by correspondents and brokers. But third-party originators generated lower-risk loans at the agency level.
Mortgages with low credit scores and higher loan-to-value ratios accounted for a larger share of Fannie/Freddie purchase business in the first quarter. But the industry is hardly in a race to the bottom despite slumping volume and tight margins.
A group of 22 banks reported a combined $1.84 billion in mortgage banking income for the first three months of 2019, a solid improvement from the fourth quarter but down from the same period last year.
So far, five major banks — Wells Fargo, JPMorgan Chase, Bank of America, U.S. Bancorp and Citigroup — have reported first-quarter results, including limited details about home lending. The bottom line: mortgage lending suffered at most, but not all.
Ginnie Mae securitized $31.39 billion of FHA single-family purchase loans during the first quarter of 2019, according to a new Inside Mortgage Trends analysis of agency mortgage-backed securities disclosures. Although that represented an 18.4% drop from the previous quarter, the FHA share of agency purchase loans edged up to 30.8% in early 2019 as other insurance programs saw larger declines. Private mortgage insurance remained ... [Includes one data chart.]
The wholesale-broker channel appears to be gaining ground in the tightly competitive primary market in agency conforming mortgages. A new Inside Mortgage Trends analysis reveals that broker originations accounted for 12.5% of single-family loans pooled in agency mortgage-backed securities during the first quarter of 2019. That represented a substantial leap of 1.3 percentage points from the broker share of Fannie Mae, Freddie Mac and Ginnie Mae ... [Includes two data charts.]