JPMorgan Chase and Wells Fargo, which account for over 40% of the industry mortgage banking income, reported sharply different results in their third quarter call reports. (Includes data chart.)
TD Bank, State Street, Northern Trust and several other banks bucked the trend and increased their ABS investment during the third quarter. But the industry's total holdings fell 1.5% from June. (Includes two data charts.)
Wholesale-broker volume in the third quarter hit its highest level since early 2008 but lost market share with a relatively modest 16.7% increase from the previous period. (Includes six data charts.)
Industry MBS holdings rose 3.6% to $1.98 trillion as of the end of September, with most of the gains coming in agency pass-throughs. Wells, Chase, BB&T and Citi all posted big gains, BofA not so much. (Includes two data charts.)
The conforming-jumbo business was booming in the third quarter, especially at Fannie and the VA. Meanwhile, the FHFA likely will boost the conforming loan limit to over $500,000 for 2020. (Includes three data charts.)
Along with the increase to the baseline limit, caps on Fannie Mae, Freddie Mac and government-insured loans in high-cost areas would also rise, to as much as $760,000…
Correspondent production is still the leading source of government-insured loans, according to an exclusive survey, but retail gained ground in the third quarter. Wholesale-broker volume was up, but its market share contracted.