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.)
Private MIs posted bigger gains in new insurance written than FHA and VA during the second quarter. But soaring delinquencies and related expenses nearly wiped out industry earnings. (Includes three data charts.)
New VA home guaranty business continued to boom, rising 21.8% from the first quarter to a record $100.52 billion. But FHA single-family endorsements fell 5.9% to $73.19 billion over that period.
Although the share of loans four or more payments past due continued to climb in July, total delinquencies and early-stage default rates were lower. (Includes data chart.)
Most top Ginnie MBS issuers posted big gains in July, but the government-insured market has generally lost market share to conventional-conforming lending. (Includes two data charts.)
July pushed year-to-date issuance to a stunning $1.512 trillion. The market is on track to top $2.5 trillion by the time 2020 is over, which would smash the current annual record of $2.130 trillion set in 2003.
Freddie celebrated its 50th anniversary in July with a historic $107 billion in single-family MBS issuance. Purchase-mortgage business was up at all three agencies. (Includes two data charts.)