GSE single-family MBS issuance fell 1.6% from December 2019 to January 2020, but production was double its volume of a year ago. (Includes two data charts.)
Sales to Fannie and Freddie of refinance loans with private MI coverage rose 61.8% from the third to the fourth quarter last year. But the VA program remained the most refi-intensive sector.
A large concentration of refinance loans meant that retail mortgages sold to the agencies had higher credit scores — along with lower LTV and DTI ratios — than did third-party originations. Seller profiles were shaped by their channel strategies. (Includes two data charts.)
For the first time, Freddie was able to charge a higher average g-fee for new single-family business during the fourth quarter of 2019. Pricing disparity was a key driver in the development of the uniform MBS.
Issuance of single-family MBS backed by newly originated loans rose 12.3% from the third to the fourth quarter, while primary-market production was up just 7.9%. (Includes data chart.)
The wholesale-broker market was the fastest-growing production channel in 2019 and reached its strongest annual volume since the financial crisis. Retail saw bigger gains in the fourth quarter as refinance volume spiked. (Includes six data charts.)