GSE Seller Profile: 1Q15 PDF Format

Product Details

Mortgage brokers played an increasingly important role in the conventional conforming market during the first quarter of 2015. Mortgage brokers were responsible for $23.8 billion of single-family mortgages securitized by the two government-sponsored enterprises during the three-month period. That was up 16.0 percent from fourth quarter 2014, the biggest gain among the three production channels. The broker rebound in the first quarter was largely tied to a sharp increase in refinance loans flowing through the GSE securitization pipeline. Fannie Mae and Freddie Mac securitized $118.2 billion of refi loans during the quarter, a 32.9 percent jump from the previous period. Refi loans accounted for over half of GSE activity for the first time since the third quarter of 2013.

But how did the quarter play out at individual seller/servicers? Inside Mortgage Finance’s GSE Seller Profile examines the effects at every institution that sold to Fannie or Freddie in 1Q15, from #1 Wells Fargo to #1985 Harbourton Financials. You’ll have detailed information on where each seller is sourcing its loans—retail, correspondent or broker. You’ll have particulars on the loan demographics—FICO score, loan-to-value, debt-to-income and loan size averages. You’ll also see how the sales break down by product type—refinance or purchase. Dig deeper into the channel-specific data to get even more narrowly focused information on loan demographics and product type.

The particulars allow you to compare and contrast your results, as well as your products and processes, with the rest of the market to root out refinements and new approaches that will improve your own results.

The current report looks at the 1,985 sellers to the GSEs in the first quarter of 2015 and reports on their activity. You’ll find:

• Ranking of the 1,985 sellers by volume with detail on their market share, volume by channel, volume by loan purpose and average loan characteristics.
• An alphabetical listing with rank, total volume and market share and detail on each seller’s volume by channel, volume by loan purpose and average loan characteristics.
• Separate rankings of GSE sellers by channel with channel volume and market share. These rankings provide separate detail on average credit score, DTI, LTV and loan size for refinance and purchase loans.
• Average coupon for the Top 100 sellers for each month in the quarter. You’ll find coupon rate for all loans as well as for each purpose and each channel.

The data in the GSE Seller Profile are derived by IMF’s research team from Fannie Mae and Freddie Mac loan-level mortgage securities disclosures.

Find out who’s doing what to score more business. For example:

• Who is making use of correspondents and brokers, and what type of business are those channels bringing in;
• Who is lending to low FICO customers and what do the other loan demographics look like;
• Who is doing a lot of purchase-money business and what kind of loans are they making;
• Where is the business getting done—where do opportunities lie;
• By lender, what are the average FICO, DTI, LTV, size, refi share, and channel breakdowns;
• Whose business would match up well with yours to create a successful partnership.

From the first quarter 2015 report, you'd learn:

• Lake Michigan Credit Union, #88 in volume sold to the GSEs in 1Q15, sold $288 million in loans. Of these, $175 million came through the retail channel, $113 million from correspondents, and none from brokers. Most ($154 million) were for home purchase.
  
  Get these details, plus underwriting characteristics, for 1,984 other sellers.

• American Financial Resources and AmeriSave Mortgage Corp. both sold about $337 million in loans to the GSEs in 1Q15. But their businesses looked radically different. AmeriSave sourced primarily retail and refinance mortgages with an average loan size of $258,273, average FICO of 761.7, and average loan-to-value of 67 percent. American Financial Resources sourced most of its loans from correspondents, with a nearly even split between refi and purchase and had an average loan size of $180,105, 729.8 FICO and 80 percent LTV.
  
  Compare and contrast nearly 2,000 sellers, every institution that sold a loan to either Fannie or Freddie during the quarter.

• At Merchants Bank NA, refi loans sourced through the retail channel had an average FICO score 17 points higher than the retail-generated purchase loans. Average loan-to-value ratio was more than 15 percent lower, and average loan size was nearly $40,000 greater on the refis.
  
  Dive into underwriting characteristics channel by channel.