GSE Private Mortgage Insurance Profile: 3Q14 PDF format

Product Details

More and more loans sold to the government-sponsored enterprises are carrying private mortgage insurance.  In the third quarter of 2014, 26.5 percent of loans sold to the GSEs had PMI; as recently as 1Q13, it was just 14.1 percent.

In the quarterly report GSE Private Mortgage Insurance Profile, Inside Mortgage Finance looks at the details of this business: what volume of PMI-covered loans each lender sold, what the loan-to-value ratios were, how much of the lender’s GSE sales had PMI coverage, what channel the loans originated in, and which GSE the loans were sold to.

In the report, you’ll find charts 

• Ranking the 1,573 lenders by volume of loans with private mortgage insurance,

• Ranking the lenders by volume of loans originated in the broker or retail channels with private mortgage insurance, and

• Ranking states where PMI-insured loans were originated.

In the third quarter:

• Some lenders were far off the market pace for share of MI-covered loans sold to the GSEs, missing the 26.5 percent mark by significant amounts. This group includes Bank of America, which still managed to have the 10^th largest volume of MI-covered loans despite only 7.4 percent of its GSE loans falling into that designation. Also in this group was Santander Bank, which ranked 63^rd even though only 6.1 percent of its GSE loans had MI, and Fremont Bank (#242, 3.3 percent). Each of these banks also sourced more of its MI-covered GSE loans from the retail and broker channels than the industry norm.
• With the waning of the refinance business, nearly all of the MI-covered loans sold to the GSEs (92.4 percent) had a loan-to-value ratio between 85 and 97. Sellers with notable volume in other LTV bands included Discover Home Loans (10.8 percent of loans were in the below-85 band) and CitiMortgage (2.9 percent were in the above-105 band).
• California remains the state with the greatest potential to produce more MI-covered loans. Even though the state was home to 10.0 percent of the MI-covered loans sold to the GSEs during the period, 87.1 percent of the GSE loans from the state did not include MI coverage.

The data in this report will help you learn who is using private mortgage insurance, how heavily they are relying on it for their GSE business, and what the characteristics are of the typical loan that they are insuring.