The primary market tilted more heavily to conventional-conforming production in the second quarter as lenders rode soaring consumer demand and hefty profit margins to sell loans to Fannie Mae and Freddie Mac. (Includes two data charts.)

It was the biggest quarterly output for the sector since 2003 and represented 68.2% of the total $865 billion of first-lien originations in the second quarter.

The nation's second largest home lender, Wells Fargo reported a 34.3% decline in residential mortgage banking income...

While the refinance market continued to go bonkers, agency securitization of purchase loans showed a bigger relative gain from June.

The Ginnie Mae market was hit particularly hard, with bulk transfers crashing 81.0% to just $11.63 billion.

Fannie Mae saw bigger gains in both refinance and purchase mortgages during the first half of 2020. (Includes two data charts.)

Most of the major bulk buyers of agency servicing rights moved to the side-lines in the second quarter of 2020, and more mid-sized lenders opted to hold MSR rather than sell through coissuance arrangements. (Includes three data charts.)

The second quarter of 2020 generated the strongest profits from mortgage banking that the banking industry has seen in years. MSR accounting issues were a drag, but production volume and margins soared. (Includes data chart.)

Given the widespread shuttering of consumer-focused businesses due to the coronavirus, it’s no surprise that securitization of loans on retail properties plummeted 90.1% to just $275.0 million.

After taking big hits in credit expenses and hedging losses in early 2020, Fannie and Freddie reported more normal net income in the second quarter. (Includes data chart.)