The amount of Ginnie Mae servicing outstanding increased by 1.9% in the fourth quarter. On an annual basis, servicing volume was up 8.2%. Defaults on loans in Ginnie MBS are also rising, particularly for FHA loans. (Includes four data tables.)
If the government-insured mortgage programs don't follow FHFA in shifting to a bi-merge process, then it's not worth making the switch for GSE loans, according to CHLA.
"Our expectation remains that the next quarter will be amongst the toughest the industry has seen in the last 15 years," said Matt Scurlock, a managing director and chief financial officer at Texas Capital Bank.
Nonbanks are fueling securitization of home-equity lines-of-credit, closed-end second liens and home equity investments. Issuance jumped in 2023 as refi business dried up. (Includes two data tables.)