First-lien holdings increased in the third quarter but Chase stood out among big banks as it sold mortgages and acquired MBS. First Republic slowed its mortgage sales and boosted its portfolio. (Includes data chart.)
A non-agency MBS from Provident suggests better execution for GSE-eligible mortgages in the non-agency market. But analysts don’t expect a flood of non-agency MBS with GSE-eligible loans.
Expanded-credit MBS issuance looks likely to increase again in 2020, but not at the exponential growth rate seen since the sector emerged in 2015. A major variable is how the CFPB will address the QM patch.
States with high usage of the SALT deduction have seen "acute" slowdowns in home price appreciation (and even declines) since the limitation on the deduction took effect.
Originations of ARMs increased during the third quarter but they didn’t keep pace with total first-lien production, prompting a loss of market share for the sector. Wells remained the top ARM lender. (Includes data chart.)
IO lending increased in the third quarter, with First Republic leading the pack. The bank held nearly $30 billion of IOs in portfolio as of September-end. (Includes data chart.)