A surge in securitization of home purchase-money mortgages during the second quarter was not enough to offset a sizable drop in refinance activity during the first three months of the year, according to a new Inside MBS & ABS analysis and ranking. A total of $372.85 billion of agency single-family MBS was issued during the second quarter, down 3.1 percent from the first three months of 2012. Although securitization of purchase mortgages rose 22.4 percent, partly from seasonal factors as well as firming in the housing market, the volume of refinance loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae declined 10.6 percent.Includes two data charts.

Early indicators suggest that mortgage production volume was up slightly in the second quarter of 2012, and lenders continued to book strong net profits as a result of healthy gain-on-sale margins.Industry economists had generally expected a slowdown in loan production levels during the second quarter. The consensus forecast from economists at Fannie Mae, Freddie Mac and the Mortgage Bankers Association pointed to a 4.6 percent decline in new originations during the second quarter.Despite the fact that mortgage interest rates continued to ...

There isn’t a lot of doubt about the increasingly top-heavy nature of the mortgage business, but industry experts are divided over the role government policy has played and its impact down the road as Dodd-Frank Act reforms take root. A decade ago, in 2001, the top five lenders in the market accounted for 37.6 percent of total originations and 36.6 percent of mortgage servicing. By the end of last year, the top five lenders had a combined market share of 59.1 percent in originations and 55.2 percent in mortgage servicing.That trend could be exacerbated by the increased compliance ...

Mortgage servicers have not maximized their potential outreach to borrowers facing foreclosure in the wake of the consent orders issued last year by the Office of the Comptroller of the Currency, the Federal Reserve and the Office of Thrift Supervision, according to a new report by the Government Accountability Office. The same can be said for the regulators. “Regulators and servicers have gradually increased their efforts to reach eligible borrowers and have taken steps to improve communication materials,” the GAO said, but they failed to undertake such “best practices” ...

The overhang of severely delinquent and in-foreclosure residential mortgages continues to challenge large banks with extensive mortgage operations, while it also affects the economic environment for all banks, according to the Office of the Comptroller of the Currency.The OCC’s latest Semiannual Risk Perspective report flagged three major risk concerns for the banking industry: the aftereffects of the recent housing-driven credit boom-bust cycle; the challenges to banking industry revenue growth after the recession; and the potential that banks may take excessive risks in an effort to ...

A larger percentage of loans originated over the past three years show evidence of collusion fraud among parties to the transaction, according to LexisNexis. Prior to 2009, collusion fraud – defined as incidents of verified, non-arm’s length transactions – was reported on less than 5.0 percent of loans, the company said. For loans originated in 2009, that rate jumped to 7.0 percent and then to 9.7 percent in 2010. The rate edged down to 6.8 percent for 2011 originations, but experts think the reported numbers understate the prevalence of such fraud.“Because these complex relationships ...

Mortgages sold to Fannie Mae and Freddie Mac are increasingly coming from lenders’ retail production channels, according to a new analysis by Inside Mortgage Trends. In the second quarter of 2012, 58.1 percent of single-family loans securitized by the government-sponsored enterprises were retail originations, up from 52.9 percent in the first quarter. Broker originations dropped from 10.8 percent of GSE business to 9.0 percent, and the correspondent share slipped from 36.3 percent to 32.9 percent. After accounting for a whopping 83.2 percent of Fannie/Freddie business in the first quarter ...

Representatives of the mortgage lending and securitization sectors are deeply concerned about and strongly opposed to a move in California that would use eminent domain to seize current non-agency mortgage loans and force their terms to be modified to ensure the affected homeowners can stay in their homes. The California county of San Bernardino and the cities of Ontario and Fontana have proposed to create a “joint powers authority to assist in preserving home ownership and occupancy for homeowners with negative equity within the parties’ jurisdictions,” according to a resolution adopted by the...

Delinquencies on home-equity loans increased in the first quarter of 2012 and industry analysts expect further increases even though first-lien mortgage performance has been improving. The top two holders of HELs have differing strategies on HEL originations, and some smaller banks are also pushing the products. The serious delinquency rate on HELs hit 2.83 percent in the first quarter of 2012, according to the Inside Mortgage Finance Bank Mortgage Database. Delinquencies increased 34.1 percent from the end of 2011 and ...

Loan modifications performed on mortgages in bank portfolios perform much better than mods on mortgages included in non-agency mortgage-backed securities, according to an analysis by Inside Nonconforming Markets of new data from the Office of the Comptroller of the Currency. The performance varies significantly even as the two types of non-agency mortgages receive the vast majority of principal reduction loan mods. The 12-month re-default rate on mods implemented from 2008 through the first quarter of 2011 was ...