A dozen publicly traded nonbanks saw combined income drop 69% from the first to the second quarter, thanks largely to shrinking production margins and unhedged MSR portfolios. (Includes data chart.)
The key to a modest increase in servicing-for-others in the banking industry was the purchase of a large nonbank by Western Alliance Bank. (Includes data chart.)
Bank investment in agency MBS, especially Fannie/Freddie paper, continued to grow during the second quarter, though not quite as much as the overall market. (Includes two data charts.)
The agency market — FHA/VA and conventional conforming — still accounted for 86% of first-lien originations, but jumbo and ECM lending are gaining ground. (Includes two data charts.)
New VA endorsements declined significantly due to a sharp drop in refinance activity, but FHA volume was up slightly in the second quarter. (Includes three data charts.)
Over $60 billion of new CLO issuance came to market in the second quarter of 2021, along with a whopping $70 billion in refinance and restructuring activity. (Includes two data charts.)
With Fannie’s Connecticut Avenue Securities on ice for over a year, the supply of single-family credit-risk transfer debt in the market has declined significantly. (Includes data chart.)