The shift from refinance to purchase-mortgage lending helped boost the share of new agency business with primary mortgage insurance during the third quarter.
Fannie, Freddie and Ginnie securitized $345.72 billion of loans with some form of primary MI during the third quarter, an 8.3% drop from the previous period.
Securitization of modified loans was a significant factor in the FHA reclaiming its traditional role as top guarantor of loans in new Ginnie MBS. PennyMac and Wells Fargo dominate the loan-mod sector. (Includes four data charts.)
Structured finance production held at historically high levels in the third quarter, though most sectors were down. Growth pockets included non-agency MBS and ABS. (Includes four data charts.)
Sales of purchase-money mortgages into the agency secondary market continued to gain momentum in the third quarter, but the refinance sector saw further erosion. (Includes two data charts.)
Over the four-month period from May to August, Fannie and Freddie purchased $46.18 billion of IPL and SHL loans, down 47.9% from the first four months of the year.
In the purchase market, the share of loans with credit scores ranging from 620 to 699 rose from 10.75% in the second quarter to 12.00% in the third quarter.
It will be the 11th issuance of its type by loanDepot.
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