While early-payment default rates showed bigger declines, the rate for loans in the most serious delinquency categories remained relatively high. Across all three agencies, 2.92% of loans were four months or more past due, down slightly from the previous month.
The VA continued to expand its role in the Ginnie MBS market in October. Overall, a small increase in purchase-mortgage business offset a tiny slip in refi volume. (Includes two data charts.)
Year-to-date production, $1.852 trillion as of Halloween, was up 131.5% from last year. It’s a foregone conclusion that Fannie and Freddie this month will top the current $1.912 trillion annual record for GSE MBS issuance set back in 2003.
While securitization of broadly syndicated loans gained momentum in the third quarter, CLO issuance backed by refinancing and commercial real estate remained sluggish. (Includes data chart.)
The two GSEs agree that a proposed capital rule would diminish the benefit of credit-risk transfers, but Freddie plans to stay in the market under the current regime. (Includes data chart.)
Fannie and Freddie both reported declines in the most severe category of delinquency, but Ginnie's rate was slightly higher in October. (Includes data chart.)
All sectors of the MI market saw healthy increases in volume during the third quarter, with private MIs expanding their share and VA falling back slightly. (Includes three data charts.)
The refinance business for private MIs fell 11.0% from the second to the third quarter, dropping to 30.6% of their production. Still, that’s well above historic norms...
The result was that nonbanks at the end of September accounted for 49.1% of the top-50 market, a measurement that includes a substantial volume of subservicing.