Freddie Mac's STACR issuance was up solidly in the third quarter, along with its reinsurance program. While Fannie’s CAS production was down, volume will pick up in the fourth quarter. (Includes data chart.)
Despite a solid gain in refinance transactions, CLO issuance fell 26% from the second to the third quarter. Octagon Investment Partners was the top is-suer at the nine-month mark. (Includes data chart.)
The top five servicers managed a meager 0.5% increase during the third quarter despite big gains at NewRez and PennyMac. Nonbanks overall posted a 4.4% gain, although a handful of them reported declines. (Includes two data charts.)
The combined portfolio of the top five servicers actually declined slightly during the third quarter. Megabanks Wells Fargo, Chase and Bank of America shed a combined $26.8 billion during the third quarter, with $20.0 billion of that taking place at Wells. Mr. Cooper Group, the largest nonbank servicer, reported a slight $2.5 billion drop, although its subservicing portfolio grew 2.8% to $310.5 billion.
Delinquent loans accounted for 7.37% of FHA mortgages in Ginnie MBS at the end of September, up from 6.98% at midyear. The total delinquency rate for VA loans rose from 3.52% to 3.73% over that period. (Includes four data charts.)
Most of the increased production in the third quarter came in agency multifamily MBS, and it remains to be seen whether new caps on Fannie and Freddie significantly reduce their footprint in the market. (Includes data chart.)
With strong refinance demand, low rates and solid housing sales for this time of year, 2019 could end up as the best year since 2006, when originations totaled $2.550 trillion.
First-lien mortgage lending hit $700 billion during the third quarter of 2019, the market's biggest output in a dozen years. VA loan guarantee volume hit a record level; private MI business may have as well.
The Freddie Mac single-family servicing market grew roughly three times as fast as the Fannie Mae market during the third quarter, according to a new Inside the GSEs analysis.