October 11, 2018

Latest from Inside Mortgage Finance

Jumbo Lending Surges in 2Q18

Overall jumbo volume recovered from the the first quarter slump, but conforming-jumbo securitization continued to slip.

Read more in Inside Mortgage Finance.

Agency Market Tilts Toward Purchase Lending in 3Q18, Driving More Business to Private MIs

Private mortgage insurers appeared to gain market share in the third quarter of 2018 as purchase-mortgage lending surged in the agency market, according to an exclusive ranking and analysis by Inside Mortgage Finance. [Includes three data charts]

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Mortgage-Hungry Insurance Conglomerate Eli Global Hits the Pause Button. Founder Subject of Grand Jury Investigation

Over the past two years, insurance conglomerate Eli Global has been quietly vetting mortgage companies for purchase, occasionally striking deals while appearing hungry for more. But now, the company is taking a major pause after news broke that Founder and Chairman Greg Lindberg will be the subject of federal grand jury testimony in Charlotte, NC, next week.

Senate Banking Panel Hearing to Explore GSE Pilot Programs on Private MI, MSR Financing, SFR Sales

The Senate Banking, Housing and Urban Affairs Committee next week is expected to push officials from Fannie Mae, Freddie Mac and the Federal Housing Finance Agency on controversial pilot programs that have drawn the ire of certain industry factions.

Feature Stories

Inside The GSEs

GSE 1-Family Business Up 10% in 3Q18 as Purchase Market Grows

Seasonal housing-market factors pushed GSE single-family mortgage business higher in the third quarter, according to a new Inside The GSEs analysis of mortgage-backed securities data. Fannie Mae and Freddie Mac issued $213.81 billion of single-family MBS in the third quarter, a 10.4 percent increase from the previous period. The gain came from a 23.4 percent surge in purchase-mortgage business, which offset a 15.5 percent downturn in GSE refi activity. [Includes two data charts.]

Inside MBS & ABS

Non-Agency MBS Issuance Down Sharply in Third Quarter as Nonprime Sector Tops Prime

New production of non-agency MBS in the third quarter couldn’t keep pace with the record level reached in the previous period, but the market remained on track to top last year’s total issuance by the time 2018 ends. [Includes three data charts]

Inside Mortgage Trends

Correspondent Platforms Gain Share in 3Q18 Agency Mortgage Market

Mortgages originated by correspondent lenders and sold to aggregators accounted for a larger share of agency business in the third quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities disclosures. [Includes two data charts.]

Inside Nonconforming Markets

Expanded-Credit MBS Issuance Up in 3Q18, Prime Non-Agency MBS Declines

Issuance trends for non-agency mortgage-backed securities stocked with newly-originated mortgages were mixed in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Issuance of prime non-agency MBS declined significantly on a sequential basis in the third quarter. And for the first time, expanded-credit MBS issuance volume topped prime non-agency MBS activity. Some $3.58 billion of expanded-credit MBS was ... [Includes one data chart]

Inside FHA/VA Lending

Solid Gains in Purchase-Mortgage Business Offset 3Q18 Refi Slump

Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]

Inside the CFPB

Lenders Prepared for TRID 2.0, Seeking Further Clarification

The revised integrated mortgage disclosure rule takes effect this month, and compliance experts said the industry is ready despite some remaining uncertainty. The CFPB last year finalized amendments to its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule. The revised rule, dubbed TRID 2.0 by the industry, became effective in October 2017, but the agency set Oct. 1, 2018, as the mandatory compliance date ...

Poll

Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.

35%

The wholesale/table funder. They’re taking the financial risk.

30%

The broker, but only for the first year. After that, the borrower is fair game.

13%

Hard to answer. It’s a complicated issue.

22%