Product Details
Fannie Mae and Freddie Mac securitized 29.7 percent more loans in 3Q than in the previous quarter. The $283.2 billion in issuance included the biggest quarterly flow of purchase mortgages to the GSEs since the housing market collapse as well as the largest volume of refinance loans in three years.
The quarter also marked at least a temporary halt to the growing importance of nonbank sellers, who saw their share of sales dip for the first time in many quarters. Instead the megabanks outshone the market and expanded their combined footprint by 2.2 percent compared to 2Q.
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 3Q16, from #1 Wells Fargo to #2044 Baybanks Mortgage Corporation. 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 2,044 sellers to the GSEs in the third quarter of 2016 and reports on their activity. You’ll find:
- Ranking of the 2,044 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.
From the third quarter 2016 report, you'd learn:
Paramount Residential Mortgage Group, #567 in volume sold to the GSEs in 3Q16, sold $23.3 million in loans. Of these, $5.4 million came through the retail channel, $8.7 million from correspondents, and $9.1 million from brokers. Forty seven percent ($10.9 million) were for home purchase.
Get these details, plus underwriting characteristics, for 2,043 other sellers.
Advisors Mortgage Group (#351) sold $56.7 million in loans to the GSEs, sourcing most (98.1 percent) from correspondents. Two-thirds (67.6 percent) were purchase loans. Mortgage Solutions of Colorado (#354) split its sourcing more evenly, gaining 56.8 percent of its $56.0 million in sales from retail, 40.6 percent from brokers, and 2.6 percent from correspondents. Its sales were nearly evenly split between purchase loans and refis. Underwriting was slightly looser at Mortgage Solutions, with average FICO of 735.6, loan-to-value of 77.0 percent and debt-to-income of 34.4 percent. At AMG, credit score was 745.4, LTV was 75.7 percent and DTI was 34.9 percent.
Compare and contrast more than 2,000 sellers, every institution that sold a loan to either Fannie or Freddie during the quarter.
At Severn Savings Bank, refi loans sourced through the retail channel had an average FICO score 75 points lower than similarly generated purchase loans. Average debt-to-income ratio was more than 4 percent higher, and average loan size was more than twice as large on the refis.
Dive into underwriting characteristics channel by channel.
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.
Choose "PDF Format" or "Spreadsheet Format" for immediate download of document. You will also be able to access the document, at any time, through the "My Account" feature on insidemortgagefinance.com.