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.)
Overall volume was up for both purchase and refinance loans as Ginnie posted its second-highest monthly MBS issuance. VA provided most of the oomph. (Includes two data charts.)
The increase in agency MBS from December to January came from the Ginnie program, which has a slower securitization process than Fannie and Freddie. And some loans may have been held back to benefit from higher loan limits. (Includes two data charts.)
In late 2019, conventional-conforming originations hit their highest quarterly volume since the epic 2003 mortgage market. Government lending wasn't far behind.
Government-insured lending wasn’t far behind. An estimated $165.0 billion of government loans were originated in the fourth quarter, up 8.6% from the prior period.