Roughly 10% of loans backing Ginnie Mae MBS at the end of May were in forbearance because of the COVID-19 pandemic, but over a quarter of them were still current. (Includes data chart.)
S&P, Moody’s and DBRS made the most of the surge in rated ABS issuance during the first quarter. Kroll and Moody’s managed to increase non-agency MBS ratings in a declining market. (Includes two data charts.)
Nonbanks accounted for a record 63% of production by the top 100 lenders in the first quarter. Meanwhile, industry economists project a sharp drop in volume in the third quarter. (Includes two data charts.)
Banks and thrifts continued to cede share in the servicing of single-family MBS to nonbanks. The retained portfolios of depository institutions grew at half the rate of overall mortgage debt outstanding. (Includes two data charts.)
Most of Freddie’s buyback claims end up being withdrawn by the GSE. A substantial share of Freddie’s loan purchases are underwritten through Fannie’s automated underwriting platform, but not all of the Desktop Underwriter extended services are available if the loan is sold to Freddie.
The first quarter of 2020 marked the lowest bank earnings on mortgage banking activity since the financial crisis. A big part of the decline came from steep losses at Fifth Third and Bank of America. (Includes data chart.)
Hefty MSR hedging losses crushed profits on mortgage servicing in the first quarter, but mortgage bankers ended the period in better financial shape than they started it. (Includes data chart.)