Purchase-money mortgages accounted for 82.5% of agency MBS issuance during August, though the refinance share is growing.

FHA accounted for 59.5% of government-insured originations in the second quarter.

Securitization of FHA loans increased 6.3% to $22.09 billion in July, while VA production was up 11.4% to $15.44 billion.

Ginnie MBS issuance increased by 8.3% on a monthly basis in July while GSE volume declined somewhat.

Some $63.39 billion of MSR on Ginnie MBS were transferred in the second quarter of 2024, up from $24.22 billion in the prior period.

Halfway through 2024, Lakeview/Bayview Loan Servicing was the leader in removals from Ginnie MBS, with $11.33 billion.

Issuance of Ginnie Mae mortgage-backed securities rose 19.2% in the second quarter.

Prepayment rates are expected to be higher than in previous refinance cycles because lenders have bumped up spending on technology to improve recapture rates and loan originators are eagerly anticipating increasing their volume.

John Bell, executive director of the VA Home Loan Guaranty Service, said the agency doesn’t support the partial claims bill without amendments.

Lenders delivered $27.21 billion of purchase loans into Ginnie MBS in May, up 7.5% from the prior month.