Might GSE seller/servicers see changes in LLPAs during the coming months? Stay tuned... 

The prime jumbo space saw the strongest rebound, with new issuance jumping 168.1% from the second to the third quarter.

While the supply of VA loans in Ginnie MBS continued to grow during the third quarter, the volume of securitized FHA forward mortgages fell 2.7% from the end of June.

Most loans are removed from Ginnie pools because the borrower paid off the loan. Then there's the matter of EBOs...

The previous record, $895.31 billion, was set in the third quarter of 2003.

This morning, on the heels of JPM’s results, nonbank United Wholesale Mortgage, reported third quarter originations of $54.2 billion, a sequential gain of 31.8%. UWM also disclosed period earnings of $1.5 billion, a record for the soon-to-be-public company.

The reason for the decline: Many borrowers saw their forbearance plans expire because they did not contact their servicer. At least, that’s what MBA concluded.

The overall number of loans declined as borrowers whose loans were not in forbearance took advantage of low interest rates to refinance. Ultimately, Fannie’s net forbearance rate only declined about 1.0% in June, WFS said.

In other words, in a market sized at roughly $2 trillion, and with total delinquencies measured at $218.9 billion (according to Ginnie’s website), the so called COVID-19 liquidity crisis never arrived...

At the same time, sales of refi loans in the highest-risk category fell 5.0%. Such loans have LTVs of 81% to 97% and FICO scores of 620 to 699.