In terms of risk layering, some 10.5% of bank loans were in the lowest risk category, with high credit scores and low loan-to-value ratios. Just 8.8% of nonbank loans were in that bucket, according to Inside The GSEs.
Historically, Fannie sellers have repurchased far more loans ($49.64 billion) than have Freddie sellers ($29.94 billion). But most of that disparity occurred before 2014…
Nine of the top 10 bank loan sellers reported reduced secondary market activity in the first quarter. Citigroup was an outlier, more than doubling its fourth-quarter volume.
Nonbanks have increased their role in the selling and servicing of Fannie/Freddie mortgages. Nonbanks also sell somewhat riskier loans for which the GSEs are paid higher guarantee fees.
Lender buybacks of Fannie and Freddie mortgages remained at microscopic levels in early 2019, although there was a sharp increase in the pipeline of unresolved repurchase demands.
Seller repurchases of defective loans dropped to the second-lowest total on record, but Freddie repurchases remained significantly higher than Fannie's. The volume of unresolved claims was up from the fourth quarter.