Read the tea leaves: Just 56.4% of second-quarter loan originations have been pooled in MBS. In recent years, the overall securitization rate has run at about 70%.
Annual adjustments in the GSE loan limit are required by law and FHFA regulations peg them to changes in an index of average house prices maintained by the agency. As of the most recent reading, the loan limit will easily climb over $500,000 in 2020, a threshold that will get people’s attention.
Some $57.16 billion of residential mortgages with a business or commercial purpose were originated during the review period, accounting for 3.7% of total originations.
In terms of new HELOC commitments for the second quarter, Bank of America led the pack with $2.77 billion, followed by Wells Fargo ($1.91 billion) and Citizens Bank ($1.50 billion).