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.)
Chase reported a huge increase in mortgage banking income that resulted in part from internal accounting while Wells posted a big decline due to MSR writedowns. (Includes data chart.)
Quicken Loans follows a traditional strategy of building its GSE servicing through organic production, while NewRez has relied heavily on MSR purchases. (Includes data chart.)
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.)