A number of lenders have started offering conforming mortgages with balances as high as $715,000, even though the GSE loan limit is $647,200 through the end of this year. As with prior years, the lenders are anticipating higher loan limits for the GSEs next year.
Much like in other parts of the MBS and ABS markets, spreads are widening on CRT issuance from the GSEs, prompting some changes in activity at Fannie Mae and Freddie Mac.
Volume declined at all of the top 10 GSE sellers in April, both sequentially and year-to-date. Purchase mortgages outnumbered refinancings for the first time since September 2019. (Includes two data charts.)
Ginnie hopes to align, to the extent possible, its revised capital requirements for seller/servicers with FHFA’s standards. Industry participants are pushing for uniformity that isn’t too stringent.
Investment-property mortgage volume delivered to the GSEs was flat on a sequential basis in the first quarter, second-home volume declined by 8.0% and conforming jumbo business fell 38.5%. (Includes data chart.)
In January, the GSEs took in a significant volume of mortgages with balances greater than the baseline conforming loan limit for 2021. Note: A number of lenders had given themselves a head start on 2022 loan limits.
FHFA’s increase of fees on GSE mortgages for second homes could shift some volume into the non-agency market. Demand for second homes is also increasing.
Loan originators hurting for business as GSE refis decline should consider non-QMs, according to industry participants. Some major lenders are expecting non-agency lending to jump this year.
JPMorgan Chase was in a league of its own in the prime non-agency mortgage-backed securities market last year, with more than double the volume of its nearest competitor. (Includes three data charts.)