October was also unusual because the flow of VA loans into Ginnie MBS exceeded the intake of FHA loans. That’s the first month of VA supremacy over FHA since the beginning of 2017 and perhaps in Ginnie’s history.
Issuers last month produced a record $57.6 billion of Ginnie MBS backed by forward mortgages. While the flow of purchase loans rose modestly, the key growth engine was the refinance market. (Includes two data charts.)
Continued growth in the refinance market pushed new agency MBS issuance slightly higher in October, offsetting further softening in the purchase-mortgage business. (Includes two data charts.)
Third quarter production of government-insured loans looks like an all-time record, while the conventional-conforming market saw its biggest output since 2003. (Includes two data charts.)
According to a new tally from Inside Mortgage Finance, refis accounted for 47.6% of first-lien originations in 3Q19 compared to 35.9% and 35.2% in the second and first quarters, respectively.
JPMorgan Chase was the top earner in the third quarter with $886.0 million in mortgage banking fees and related income, a three-fold increase from the previous period. However, the huge gain comes with a significant asterisk…
In the third-quarter agency purchase-mortgage market, the retail channel generated loans with stronger credit characteristics than third-party platforms. For agency refi business, retail loans tended to have lower credit scores. (Includes two data charts.)