GSE Seller Profile: 2Q15 Spreadsheet Format

Product Details

The volume of retail-originated loans sold to the two government-sponsored enterprises climbed 27.8 percent between the first quarter of 2015 and the second. Although retail production typically surges in heavy refinance markets, that is not the major driver this time as purchase mortgages actually gained more ground in the second quarter than refis did. Rather the rise in retail market share likely reflects the fact that smaller lenders, which are more likely to do retail lending exclusively, account for a growing share of GSE business. Fannie’s top five sellers accounted for just 28.4 percent of its business in the second quarter, and Freddie’s top-five share declined 2.5 percentage points to 36.3 percent. Share was also down among the top 100 combined sellers.

Who are these newer players, and how did their GSE business look? Inside Mortgage Finance’s GSE Seller Profile examines the GSE sales at every institution that sold to Fannie or Freddie in 2Q15, from #1 Wells Fargo to #1805 Peoples Bank (Ohio). You’ll have detailed information on where each seller is sourcing its loans—retail, correspondent or broker. You’ll have particulars on the loan demographics—FICO score, loan-to-value, debt-to-income and loan size averages. You’ll also see how the sales break down by product type—refinance or purchase. Dig deeper into the channel-specific data to get even more narrowly focused information on loan demographics and product type.

The particulars allow you to compare and contrast your results, as well as your products and processes, with the rest of the market to root out refinements and new approaches that will improve your own results.

From the second quarter 2015 report, you'd learn:

• Union Home Mortgage, #148 in volume sold to the GSEs in 2Q15, sold $174 million in loans. Of these, $147 million came through the retail channel and $27 million from brokers. Most ($108 million) were for home purchase.

  Get these details, plus underwriting characteristics, for 1,804 other sellers.

• For both Lake Michigan Credit Union and First Technology Federal Credit Union, purchase loans accounted for slighty more than half of the loans they sold to the GSEs in 2Q15. But Lake Michigan sourced one-third of its loans from correspondents, made loans to borrowers with lower FICO scores (12.1 points), higher debt-to-income (1.5 percent) and higher loan-to-value ratio (9.8 percent). First Technology’s loans were about $90,000 larger, on average.

  Compare and contrast more than 1,800 sellers, every institution that sold a loan to either Fannie or Freddie during the quarter.

• At Athens State Bank, refi loans sourced through the retail channel had an average FICO score 13.2 points higher than the retail-generated purchase loans. Average loan-to-value ratio was more than 23.8 percent lower, and average loan size was more than $20,000 less on the refis.

  Dive into underwriting characteristics channel by channel.

The current report looks at the 1,805 sellers to the GSEs in the second quarter of 2015 and reports on their activity. You’ll find:

• Ranking of the 1,805 sellers by volume with detail on their market share, volume by channel, volume by loan purpose and average loan characteristics.
• An alphabetical listing with rank, total volume and market share and detail on each seller’s volume by channel, volume by loan purpose and average loan characteristics.
• Separate rankings of GSE sellers by channel with channel volume and market share. These rankings provide separate detail on average credit score, DTI, LTV and loan size for refinance and purchase loans.
• Average coupon for the Top 100 sellers for each month in the quarter. You’ll find coupon rate for all loans as well as for each purpose and each channel.

The data in the GSE Seller Profile are derived by IMF’s research team from Fannie Mae and Freddie Mac loan-level mortgage securities disclosures.

Find out who’s doing what to score more business. For example:

• Who is making use of correspondents and brokers, and what type of business are those channels bringing in;
• Who is lending to low FICO customers and what do the other loan demographics look like;
• Who is doing a lot of purchase-money business and what kind of loans are they making;
• Where is the business getting done—where do opportunities lie;
• By lender, what are the average FICO, DTI, LTV, size, refi share, and channel breakdowns;
• Whose business would match up well with yours to create a successful partnership.