Improving efficiency played a big role in boosting mortgage-banking profits in the second quarter as gain-on-sale margins narrowed while servicing took a hit on net MSR valuation. (Includes data table.)
Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
AGNC Investment gained some ground on REIT-leader Annaly Capital Management in the agency MBS sector. Industry holdings of non-agency MBS and whole loans fell in the second quarter. (Includes two data tables.)
Most lenders reported rising production volume, but shrinking margins ate into bottom-line profitability. Servicing results depended on how successful the firms were in hedging MSR. (Includes data table.)
Wells Fargo moved deeper into Ginnie Mae pass-throughs while JPMorgan Chase upped its holdings of GSE pass-throughs. Bank of America, Charles Schwab and U.S. Bank all reduced their MBS holdings in the second quarter. (Includes two data tables.)
Portfolio restructuring by the Federal Reserve accounted for about a third of new Fannie and Freddie Supers issuance in the second quarter, but volume is slowing down. (Includes two data tables.)
Securitization of non-agency mortgages for apartment buildings and hotels saw significant volume increases in the second quarter, while industrial and retail remained strong. However, agency multifamily MBS issuance fell. (Includes two data tables.)