The Golden State's high concentration of broker loans and refinancing is reflected in its top two sellers: United Wholesale Mortgage and Quicken Loans.
Most of the gain in production income occurred at JPMorgan Chase, which reversed an unusual loss in the fourth quarter. Wells Fargo accounts for most of the increase in servicing profits.
JPMorgan Chase reported a $200 million increase in mortgage banking income in the first quarter of 2019, a period when the banking industry managed just a $21 million gain.
Most of the 20% surge in refinance business likely came from rate-term transactions rather than cash-out deals. First-timers held up slightly better than re-peat buyers.
Although overall bank investment in non-mortgage ABS was down slightly in the first quarter, a handful of institutions made significant increases in their portfolios.
Average FHA and VA credit scores declined for both purchase and refi loans pooled into Ginnie Mae MBS in the first quarter. Wholesale-broker production gained a larger share of the market.