In a nutshell, retail lenders gorged on refis: Roughly 62.8% of refi loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the second quarter came through the channel...
Retail-originated refi production was particularly strong at the GSEs, climbing 160.5% from the first to the second quarter. By contrast, deliveries of retail refi loans rose 30.5% at Ginnie Mae, where total MBS issuance increased more modestly...
Freddie commemorated its 50th year in business with a landmark $107.6 billion in new single-family business, its biggest output ever. The GSEs could set a new annual record by the time 2020 is over. (Includes two data charts.)
PennyMac continued to lead nonbanks in profitability, generating a hefty $475.7 million in net income on its mortgage banking operations for the second quarter. Mr Cooper bounced back from a first-quarter loss while New Residential made strides toward recovery. (Includes data chart.)
Correspondent production accounted for just 25% of loans sold to Fannie Mae, Freddie Mac and Ginnie Mae during the second quarter, down from 37.0% in the previous period. (Includes two data charts.)
There’s a big disparity between default rates on Fannie/Freddie loans and government-insured loans in Ginnie MBS. The combined total delinquencies for the government-sponsored enterprises was 4.13%, compared with Ginnie’s 10.81%.
New CLO issuance fell sharply from the first quarter of 2020 to the second. Upheaval caused by COVID-19 led to widespread downgrades of borrowers backing CLO deals, though most senior bonds still have a favorable outlook. (Includes data chart.)
Neither Fannie nor Freddie issued any new credit-risk-transfer bonds during the second quarter, although Freddie resumed production in July. (Includes data chart.)