“People are pausing because of rampant uncertainty,” said Michael Fratantoni, chief economist and a senior vice president of research and business development at the MBA.
“Fannie Mae and Freddie Mac acting more private but still being in conservatorship might be the best of both worlds,” said Mat Ishbia, president and CEO of United Wholesale Mortgage.
Non-agency jumbos accounted for 13.8% of total first-lien originations in the first quarter of 2025, compared with an 11.1% share in the first quarter of 2024. Chase remained the top jumbo producer and Redwood Trust is gaining momentum. (Includes data table.)
Federal entities should take steps to boost the non-agency market, according to the MBA. Meanwhile, FHFA isn’t necessarily looking to shrink the GSEs’ footprint.
Rating services disagree over the validity of a National Association of Insurance Commissioners report that highlighted differences in private ratings based on the size of the ratings provider.
Originations of nonconforming mortgages increased by 45.7% on an annual basis in the first quarter of 2025. Government-insured lending was up 13.5% and conventional-conforming activity treaded water. (Includes two data tables.)
Interest rates on mortgages are elevated, suppressing demand. Short periods of declines in interest rates have prompted surges in loan applications. The question remains: When will interest rates do down?
FHFA Director Bill Pulte plans to announce actions that will address the costs associated with credit scores. Mortgage trade groups are providing feedback, hoping to shape the effort.