The average credit scores for new originations of FHA mortgages declined somewhat after BofA and JPMorgan Chase ceased correspondent aggregation in the market.

FHFA left it up to Congress to decide whether nonbanks should be provided access to Federal Home Loan Bank advances.

Both FHA and VA volume in Ginnie MBS issuance declined on a monthly basis in October.

Demand for mortgages from banks declined in the third quarter and many banks further tightened underwriting.

Issuance of Ginnie MBS declined by 8.6% on a monthly basis in October. FHA and VA volume declined at similar rates while purchase-mortgage activity held up better than refinances. (Includes two data tables.)

Large bank correspondent aggregators of FHA mortgages looked to firm guidelines on credit scores and LTV ratios while Fed researchers found that smaller nonbank lenders were willing to go down in credit and loan performance didn’t suffer.

Production was essentially level compared with the second quarter and margins improved.

Wide spreads are putting pressure on the value of MBS held in portfolio while also offering attractive yields for new investments.

“I believe AI will be at the center of how clients buy, sell and finance homes,” said Varun Krishna, the new CEO of Rocket Companies.

Spreads on agency MBS widened during the third quarter, leading to a decline in values for agency MBS holdings. Still, investors stress that agency MBS is an attractive investment option.