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.
Although the GSEs have for several months seen declines in the share of investor and second-home mortgage purchases, it remains to be seen whether lenders will continue to deliver these loans into the non-agency market now that the caps have been withdrawn. (Includes two data charts.)
Sales to Fannie Mae and Freddie Mac saw larger concentrations of higher-risk mortgages, in both the purchase and refinance sectors. But high-FICO loans continue to account for most GSE business. (Includes two data charts.)
Banks reported a 10% drop in retail originations through their mortgage banking operations in the second quarter. Loan sales also declined and likely continued to in the third quarter. (Includes two data charts.)