Most top lenders saw their production distribution shift dramatically toward purchase-mortgage lending in the second quarter. And nearly all shops reported declining refinance activity. (Includes four data charts.)
Most REITs reported further declines in the holdings of agency MBS and TBA positions during the second quarter. But a handful of firms continued building their MSR portfolios and non-agency MBS investment was up slightly. (Includes data chart.)
Most of the drop in bank ABS investment came in consumer-backed deals as Wells Fargo, Charles Schwab, TD Bank and others pared their holdings of these securities. But Schwab and TD both added significantly to their credit card and auto ABS. (Includes two data charts.)
Correspondent originators are better at finding purchase-mortgage business, and that’s why the channel’s market share rose in the second quarter. Brokers saw the biggest decline. (Includes six data charts.)
Falling market values for Fannie/Freddie pass-throughs played a big part in the decline in bank investment in residential MBS during the second quarter. Holdings of Ginnie MBS and non-agency securities were up. (Includes two data charts.)