Total non-agency MBS issuance was up only 3.6% from the second to the third quarter, and securitization of RPL and NPL deals fell sharply. But prime RMBS production surged dramatically.
A slowdown in primary market originations and new Ginnie MBS issuance is reflected in lower loan liquidation as borrower payoff remains the largest reason for removal.
The shift from refinance to purchase-mortgage lending helped boost the share of new agency business with primary mortgage insurance during the third quarter.
Fannie, Freddie and Ginnie securitized $345.72 billion of loans with some form of primary MI during the third quarter, an 8.3% drop from the previous period.
Securitization of modified loans was a significant factor in the FHA reclaiming its traditional role as top guarantor of loans in new Ginnie MBS. PennyMac and Wells Fargo dominate the loan-mod sector. (Includes four data charts.)
Structured finance production held at historically high levels in the third quarter, though most sectors were down. Growth pockets included non-agency MBS and ABS. (Includes four data charts.)
Sales of purchase-money mortgages into the agency secondary market continued to gain momentum in the third quarter, but the refinance sector saw further erosion. (Includes two data charts.)
Over the four-month period from May to August, Fannie and Freddie purchased $46.18 billion of IPL and SHL loans, down 47.9% from the first four months of the year.