The share of GSE purchase mortgages with credit scores of at least 740 increased from 73.8% in the first quarter of 2025 to 74.6% in the second quarter. A similar trend was seen in GSE refi business. (Includes two data tables.)
Agency single-family MBS issuance was up solidly in the second quarter, but it remains to be seen whether the market can match the pace set over the last six months of 2024. Commercial MBS and ABS issuance faltered in the second quarter. (Includes three data tables.)
Credit trends remained strong as heavy refinancing activity helped boost agency business in the second quarter of 2025. The top sellers with significant TPO platforms continued to gain market share. (Includes two data tables.)
The volume of government-insured loans originated through the correspondent channel increased 10.6% on a quarterly basis in the first quarter, while retail and broker originations shrank. (Includes data table.)
Lakeview Loan Servicing remained the top agency servicer at midyear, including the largest portfolio of high-coupon MSR. Nonbanks continued to gain market share, as did Ginnie Mae. (Includes two data tables.)
Some of the mortgage bellwethers began reporting second-quarter results this week. The good news is that loan production increased nicely from the first quarter.
Expanded-credit MBS issuance was up 25.4% from the first to the second quarter, while prime MBS saw a solid 12.6% gain. JPMorgan Chase ranked as the top issuer and underwriter of non-agency MBS. (Includes three data sets.)
Federal Reserve Governor Christopher Waller said the central bank’s balance sheet hasn’t grown as much as people think, but that MBS sales might be needed to balance the duration of assets and liabilities.
It may take time for MBS investors to fully understand how use of the new credit score for underwriting loans sold to the GSEs impacts pricing and hedge strategies.
If there’s any good news on the agency MBS front it’s that new issuance volume increased from the first quarter to the second. Then again, it was driven by seasonality.
Issuance of non-agency mortgage-backed securities reached $29.56 billion in the second quarter, up 17.3% from the previous quarter. (Includes data tables.)
The GSEs look to follow in the footsteps of a handful of non-agency lenders by considering cryptocurrency holdings when underwriting mortgage borrowers. The impact on the mortgage market remains unclear.
Figure Lending issued a securitization of home equity lines of credit this week with AG Mortgage Investment Trust acting as the retaining sponsor, a once uncommon practice in the non-agency market that’s gaining traction.
Securitization of conforming jumbo mortgages by the government-sponsored enterprises increased during the second quarter of 2025 after a slowdown in the previous quarter. (Includes data table.)
Bulk transfers of agency MSR declined in the second quarter, partly due to reduced demand for higher-coupon portfolios. While coissuance volume was up, it failed to match the gains in agency securitization of lightly seasoned mortgages. (Includes three data tables.)
While early-payment delinquency rates showed increases, the rate for loans 120 days or more late declined. Across all three agencies, overall 3.32% of mortgages were past due. (Includes data table.)
Refinances were the key reason that Ginnie MBS issuance saw sharper-than-usual increases in the second quarter of 2025. Issuance was up 30.7% from the first quarter, including a nearly 50% increase in VA refi volume. (Includes four data tables.)
Industry and veteran organizations said pending legislation that would authorize the Department of Veterans Affairs to create a partial claims program isn’t enough to close VA’s gap with other government-backed programs.
FHA eliminated restrictions placed on new construction in flood hazard areas and pulled back additional inspection requirements for properties in disaster areas.
Bulk transfers of agency MSR declined in the second quarter, partly due to reduced demand for higher-coupon portfolios. While coissuance volume was up, it failed to match the gains in agency securitization of lightly seasoned mortgages. (Includes three data tables.)
Lakeview Loan Servicing remained the top agency servicer at midyear, including the largest portfolio of high-coupon MSR. Nonbanks continued to gain market share, as did Ginnie Mae. (Includes two data tables.)
Issuance of non-agency mortgage-backed securities reached $29.56 billion in the second quarter, up 17.3% from the previous quarter. (Includes data tables.)
Expanded-credit MBS issuance was up 25.4% from the first to the second quarter, while prime MBS saw a solid 12.6% gain. JPMorgan Chase ranked as the top issuer and underwriter of non-agency MBS. (Includes three data sets.)
Although total GSE servicing remained almost unchanged as of the end of the second quarter, some large servicers — mostly nonbanks — experienced disproportionate year-over-year gains in volume. (Includes two data tables.)
Refinances were the key reason that Ginnie MBS issuance saw sharper-than-usual increases in the second quarter of 2025. Issuance was up 30.7% from the first quarter, including a nearly 50% increase in VA refi volume. (Includes four data tables.)
Although total GSE servicing remained almost unchanged as of the end of the second quarter, some large servicers — mostly nonbanks — experienced disproportionate year-over-year gains in volume. (Includes two data tables.)
Just one week after VantageScore 4.0 credit score was allowed for underwriting GSE-eligible loans, competitor FICO released data appearing to show that FICO 10 T has superior predictive capabilities.