The deluge of refinance business so far in 2020 has overshadowed a sturdy purchase-mortgage market. But softening housing-market trends suggest a rougher road ahead. (Includes data chart.)
While overall agency delinquency rates remained significantly elevated, the number of new loans entering the 30-day late category fell sharply from April to May.
Correspondent production of conventional-conforming loans fell 17.3% on a quarterly basis, reducing the channel’s share to 36.7%, the lowest reading in the past five years.
While total GSE MBS issuance rose 10.3% from April to May, many of the top sellers recorded declines in monthly loan sales. But scores of lower-tier sellers more than made up the difference. (Includes two data charts.)
While overall production volume was down in all three major product groups, the wholesale-broker channel saw increased originations of conventional-conforming and government-insured loans. (Includes two data charts.)
Most of the industry's dramatic $245 billion decline in servicing for others was the result of a change in reporting practices at Flagstar Bank. However, a number of large banks continued to back away from the business of servicing for others. (Includes data chart.)
Mortgage lenders rapidly implemented work-from-home policies that kept operations humming early in pandemic. But the huge extension of the corporate network meant a significant increase in cybersecurity risk.
Sellers delivered a record $253.3 billion of single-family loans into agency MBS during May thanks to a continuing surge in refi business. Strikingly, several of the top seller-issuers saw significant declines in monthly volume. (Includes two data charts.)
But the first quarter was just a prelude to the crescendo of refinance activity in April and May. A whopping $323.4 billion of refi loans were securitized by the GSEs and Ginnie during the past two months...