Some 71% of loans processed through an automated underwriting system last year went through Fannie Mae's Desktop Underwriter platform, including a substantial number of loans securitized by Freddie Mac and Ginnie Mae.
Fannie, Freddie and Ginnie issued a combined $170.7 billion in new single-family MBS in August, their highest monthly volume since November 2012. A big surge of refinance business was a major factor.
Private MIs and Freddie Mac posted relatively larger gains in first-time buyer business during the second quarter, though the government-insured market was still the biggest source of such loans.
Freddie saw a huge 54.2% increase in first-timer loans during the second quarter, although its 24.0% share of the agency total was the smallest of the three secondary-market platforms.
FHA/VA lending is the segment where brokers enjoy their biggest market share. In the jumbo space, they captured just 5.0% of second-quarter volume, along with a 17.1% share in the conventional-conforming market.
Mortgage banking income was up in the second quarter but didn’t keep pace with big increases in loan origination volume and secondary market sales. Wells Fargo accounted for the lion’s share of the increased profitability.
Purpose and production channel matter in loan credit characteristics but the biggest difference maker is whether the mortgage has a government guarantee.