New Ginnie Mae mortgage-backed securities volume in the first quarter of 2019 declined to the lowest level in nearly five years. Total single-family MBS production fell 15.7% sequentially to $76.97 billion.
Liquidity problems may be a major driver of increased merger and acquisition activity in 2019. Although bulk MSR buyers may be taking a pause to parse interest-rate trends, volume is expected to be strong this year.
Non-mortgage ABS issuance increased by a robust 31% from the fourth quarter of 2018 to the first three months of this year. Big gains were recorded in vehicle-finance transactions, credit card ABS, student loan securitization and business-finance deals.
A handful of top lenders posted significant gains in production volume in the first quarter of 2019 compared with the previous period. But many more shops saw double-digit declines in first-lien mortgage lending.
Nonbank servicers are increasingly moving toward a capital-light strategy, suggesting steady demand for MSR and servicing-advance financing. The investor base for such deals is strong and growing.
Agency MSR sales fell sharply from the fourth quarter of 2018 to the first three months of this year, according to an exclusive Inside Mortgage Trends analysis. Much of the downturn resulted from a return to more normal levels of Ginnie bulk deals.