In the first quarter of 2019, the average credit score for retail production was 725.97, 7.3 points higher than the average for correspondent production...
In the first quarter of 2019, the average credit score for retail production included in agency MBS was 725.97, 7.3 points higher than the average for correspondent production and 7.5 points above the figure for brokers.
A bird's-eye view suggests retail originations had higher credit scores and lower DTI ratios than loans produced by correspondents and brokers. But third-party originators generated lower-risk loans at the agency level.
Fannie increased its issuance of credit-risk transfer debt notes in the first quarter, while Freddie production was down. Both GSEs stepped up their use of reinsurance to transfer risk.
The two largest REIT investors in the MBS market added a combined $22.8 billion of agency MBS to their portfolios in the first quarter, boosting the industry to a record $308.1 billion in residential mortgage securities investment.