 | | | | By Brandon Ivey bivey@imfpubs.com Residential lenders funded roughly $59.0 billion in non-agency jumbo mortgages during the second quarter, a 34.1 percent gain from the prior period, according to figures compiled by Inside Mortgage Finance. But halfway through the year, jumbo production was off by 25.9 percent compared with the first half of 2013. However, total mortgage production declined by even more, prompting a significant increase in the market share for jumbos. Non-agency jumbos accounted for 19.4 percent of mortgages originated through the two quarters in 2014, up from a 14.4 percent market share for all of 2013 and nearly double the level of recent years. The last time the jumbo share of total originations was close to its current level was in 2005 when fundings accounted for 18.3 percent of total production. (In that year, $570 billion in jumbos were funded.) For further analysis and exclusive jumbo origination rankings, see the new edition of Inside Nonconforming Markets. Other areas of interest: Originations, Data/Rankings, Nonconforming | | By Paul Muolo pmuolo@imfpubs.com Ginnie Mae plans to unveil a new position paper on the risks that nonbank mortgage servicers pose to the guarantor, agency President Ted Tozer told IMFnews. The paper is expected to get a public unveiling when Ginnie holds a special summit for seller/servicers on Sept. 22 and 23. In a wide ranging interview with IMFnews, Tozer expressed his concern that nonbank servicers are rapidly gaining huge chunks of market share from the agency’s traditional market leaders, namely the nation’s megabanks: Wells Fargo, JPMorgan Chase, Bank of America and U.S. Bank. “The new guys are quickly gaining on the traditional players,” he said. “Some have grown from zero to $5 billion to $10 billion overnight. We’re concerned about their infrastructure and capital.” According to agency figures, Wells Fargo is still the nation’s largest Ginnie Mae servicer with a portfolio of almost $420 billion. But the numbers five through 11 ranked Ginnie servicers are all nonbanks: Nationstar Mortgage, PennyMac, Freedom Home Mortgage, Lakeview Loan Servicing, Quicken Loans, Ocwen and PHH Mortgage. The agency president said he needs more personnel to monitor the new cadre of nonbanks. Presently, Ginnie employs 120 but ideally he would like to increase staff levels to between 200 and 300 full-time equivalents. Other areas of interest: Originations, Servicing, Secondary/MBS, Regulatory, Ginnie Mae/FHA | | By Brandon Ivey bivey@imfpubs.com Credit Suisse issued a $404.62 million jumbo mortgage-backed security this past Friday with some unique characteristics. CSMC 2014-WIN1 includes a pool of 30-year fixed-rate mortgages and a pool of 15-year fixed-rate loans. Moreover, the security boasts 76 AAA-rated classes, a shift from the simple structures seen on most of the jumbo MBS deals issued in recent years. DBRS and Standard & Poor’s placed AAA ratings on the issuance with credit enhancement of 7.65 percent on the top-rated classes. The AAA classes include a large number of interest-only certificates and exchangeable certificates. The top contributors to the deal are New Penn Financial with a 23.1 percent share, EverBank Financial with 20.3 percent and Quicken with 19.8 percent. EverBank will service its contributions and Shellpoint Mortgage Servicing will handle the loans from New Penn, which is an affiliate. The rest of the servicing chores will be managed by Select Portfolio Servicing. Mortgages in the deal have seasoned for an average of four months. All of the loans subject to standards for qualified mortgages were deemed to be QMs. Other areas of interest: Originations, Secondary/MBS, Data/Rankings, Nonconforming | | By George Brooks gbrooks@imfpubs.com FHA originators have been lending more aggressively to borrowers with FICO scores below 679 than to more affluent borrowers, according to a recent research report. Using data from the Department of Housing and Urban Development and interviews with mortgage industry executives, researchers at John Burns Real Estate Consulting found that homebuyers with less-than-stellar credit are finding it easier to buy a home these days. In contrast, the study also found that automated underwriting prevents many highly qualified borrowers from obtaining a home loan because their “income situation does not fit squarely in the credit box.” This segment includes affluent retirees, self-employed, or commissioned salespeople. “In the aftermath of the housing crisis, the reality is that we are lending aggressively to the poor and conservatively to the rich,” said Lisa Marquis Jackson, senior vice president at John Burns. The study’s findings challenge certain beliefs about FHA lending, namely that high mortgage insurance premiums, lender overlays and low credit scores are denying many qualified borrowers access to the program. For more on the story, see the new edition of Inside FHA Lending, now available online. Other areas of interest: Originations, Data/Rankings, Ginnie Mae/FHA | | By Paul Muolo pmuolo@imfpubs.com Phoenix Capital is out in the market with a new “flow” servicing deal that could generate as much as $600 million in receivables per year. Without naming its client, Phoenix said the seller is a subsidiary of a bank that has been in business for almost six decades. The collateral includes both Fannie Mae and Freddie Mac product. The unnamed mortgage firm will deliver roughly $50 million per month in mortgage servicing rights. Roughly 75 percent of the loans will come from Georgia and will be top heavy in retail product. The bid deadline is Sept. 9 with transfer coming in November. Other areas of interest: Servicing, Secondary/MBS, Mergers & Acquisitions, Fannie, Freddie, Mortgage Lending & Servicing | | By Paul Muolo pmuolo@imfpubs.com FCI Lender Services is the largest servicer of privately held mortgages in the nation and unlike many mortgage companies, it loves the Consumer Financial Protection Bureau. According to Gordon Albrecht, a senior director at the Anaheim, CA-based firm, all the new regulations handed down to the industry have caused many firms to outsource their servicing. And since FCI is a subservicer, it has benefitted greatly. “Most new clients are stating that CFPB enforcement is a major factor in them getting out of servicing,” Albrecht told IMFnews… The Inspector General of the Department of Housing and Urban Development issued a statement Tuesday morning providing more details about its role in JPMorgan’s $614 million legal settlement unveiled earlier in the year. (JPM was accused of violating FHA underwriting standards.) According to the IG’s office, the case originally started as a “qui tam” filing by a Realtor. Using a qui tam filing, a citizen can allege violations of the False Claims Act on behalf of the government. In this case, the initial allegation was that JPM was not following agency guidelines on FHA production. The FHA insurance fund received $336 million of the $614 million… In case you’re keeping track, Fannie Mae’s mortgage portfolio totaled $449 billion at the end of July, an 18 percent decline over the past 12 months… VENDOR NEWS: DocMagic said it has partnered with Mountain America Credit Union to provide a paperless mortgage closing, this time on a loan insured by the Veteran's Administration. The software vendor said the closing is “one of the first VA loans” that has been closed electronically since the agency said it would begin accepting “eSigned” loan documents late last year. IN CASE YOU MISSED IT: August marked the two-year anniversary of the Treasury Department’s decision to enact its “Third Amendment Sweep” of all profits generated by Fannie Mae and Freddie Mac. The sweep is the focal point of several “takings” lawsuits filed by common and preferred shareholders against the government.
What challenges will the new mortgage disclosure forms present? The CFPB’s new integrated mortgage disclosure forms will shake up the entire originations process. Among the issues that lenders should be looking at now: Do all of your loan product types fit into the new disclosures? Learn more about the changes required under the new rules–and, most importantly, what you should be doing now to ensure the smoothest transition to the new requirements during Inside Mortgage Finance’s Sept. 11 webinar: “Planning for New Disclosures: The Time Is Now.” Other areas of interest: Originations, Servicing, Regulatory, Fannie, Freddie, Ginnie Mae/FHA | | | |
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