Although seller buybacks from Fannie/Freddie MBS trusts rose sharply in the first quarter, they still account for a miniscule share of total GSE business.
Fannie Mae, Freddie Mac and Ginnie Mae reported sharp declines in all delinquency categories during the first quarter of 2021, when loan performance typically improves. (Includes data chart.)
When Fannie/Freddie business volume trends lower, the risk profile generally skews higher. And that’s exactly what happened in the first quarter of 2021. (Includes two data charts.)
The traditional models used to predict consumer credit performance and newer machine learning methods can be extremely inaccurate, according to a new report.
A lot of the decline in servicing-for-others held by banks was attributable to Wells Fargo and other big players in the market. A number of mid-sized banks grew SFO in 3Q20. (Includes two data charts.)
The shift to lower-risk loans was particularly pronounced in the GSE refinance market, where streamlined property valuation was available for many mortgages. (Includes two data charts.)
Retail lending reigned supreme in the second quarter as lenders facing an onslaught of consumer demand focused on the most efficient and profitable production strategy. (Includes two data charts.)
Correspondent production accounted for just 25% of loans sold to Fannie Mae, Freddie Mac and Ginnie Mae during the second quarter, down from 37.0% in the previous period. (Includes two data charts.)
Only 9.2% of refi loans sold to Fannie and Freddie in the second quarter had credit scores below 700, the lowest such concentration on record. (Includes two data charts.)
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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