The top two bank ABS investors — TD Bank and Charles Schwab — pared back their holdings in 1Q, but sizable increases at Bank of America and oth-ers boosted the industry’s total position in the market. (Includes two data charts.)
Pandemic-related market volatility in March dampened non-agency jumbo lending more than other sectors in the mortgage business. Conforming-jumbo production also fell sharply in the first quarter but began regaining momentum in April. (Includes three data charts.)
The pipeline of unresolved buyback claims also grew during the first three months of the year, although repurchase activity in general remains at subatomic levels.
PennyMac executives cited elevated margins across all channels. Also, production volume rose in the more profitable consumer-direct and wholesale-broker platforms...
PennyMac Financial, which hedges its MSR portfolio, reported record earnings on mortgage banking in the first quarter. Its largest competitors posted huge losses. (Includes data chart.)
Freddie Mac continued to report significantly more repurchase activity in the first quarter of 2020 and the pipeline of unresolved claims was up from the end of 2019. (Includes two data charts.)
Banks and thrifts held a record $2.11 trillion of residential MBS at the end of March as the pandemic began to mushroom. JPMorgan Chase upped its MBS by $52.9 billion in the first quarter.
Traditional retail mortgage lending declined in the first quarter and correspondent production tanked. But the wholesale-broker sector, led by its flagship lender, posted a solid gain. (Includes six data charts.)