Securitization of income-property mortgages rose 12.4% from the first to the second quarter and six-month volume was up from last year. Non-agency CMBS saw the biggest quarterly gain.
Top nonbank servicers continued to expand their agency MSR positions in the second quarter via acquisitions and organic growth. Wells Fargo, U.S. Bank and BofA were the only top-10 agency servicers to shrink.
The GSEs took hits to their net earnings as a result of hedging losses for the third straight quarter. The launch of the uniform MBS pushed Fannie and Freddie into an indemnification agreement.
The nonbanks that ranked among the top 50 players in the servicing business upped their combined portfolio by 3.5% during the second quarter, while depository institutions recorded a slight decline.
Wells Fargo, for instance, reported $675.0 million in residential mortgage banking income for the second quarter, up just 2.1% from the previous period.
Fannie still accounted for nearly 62% of GSE single-family servicing out-standing at the end of June, but Freddie has been growing its business more quickly.