Depository Servicers End Slide in Servicing Share
HUD’s assistant secretary for Fair Housing, Craig Trainor, warned fair‑housing advocates that non‑compliance will trigger an “investigative storm.” A planned joint press conference by FHFA and HUD on a major housing policy was postponed, leaving lenders in limbo. Meanwhile, a federal appeals court ruled that certain mortgage‑backed securities could fall under ERISA fiduciary liability, reshaping the legal landscape for securitization. Together, these moves signal heightened regulatory scrutiny across the housing‑finance ecosystem.
Residential MBS Issuance Declines Slightly in First Quarter
Residential mortgage-backed securities (MBS) issuance slipped modestly in the first quarter, suggesting a slight cooling in mortgage financing after a year of robust growth. A planned “major housing announcement” by FHFA and HUD was postponed, leaving market participants awaiting guidance...
Spike in FHA Delinquencies Largely Tied to Loss-Mit Change
The Federal Housing Administration reported a sharp rise in loan delinquencies in Q1 2026, with the rate climbing to 7.2%, a 15‑percentage‑point increase from a year earlier. The surge is largely attributed to a recent change in loss‑mitigation policy that...
GSE MBS Issuance Declines in First Quarter of 2026
GSE mortgage‑backed securities (MBS) issuance dropped sharply in the first quarter of 2026, reflecting reduced lender activity and lingering uncertainty around the government‑sponsored enterprises' (GSEs) future. A planned joint press conference by FHFA and HUD to announce a major housing...
FDIC Finds TILA Non-Compliance Top Issue in 2025
The FDIC’s 2025 Bank Examination Report identified Truth‑in‑Lending Act (TILA) non‑compliance as the most prevalent regulatory breach among U.S. banks. Roughly 28 % of surveyed institutions received TILA citations, translating to an estimated $1.2 billion in consumer‑harm costs. The agency warned that...
Fannie Loosens Quality Control Standards for Lenders
Analysts are growing skeptical that the Trump administration will follow through on plans to recapitalize and release Fannie Mae and Freddie Mac from conservatorship. The president’s recent executive order directs the CFPB to roll back key mortgage regulations, including the...
Pension Funds, Life Insurers Increase MBS Holdings in 4Q
Pension funds and life insurers significantly increased their holdings of mortgage‑backed securities in the fourth quarter. The shift reflects a search for higher yields as Treasury rates stay low and the MBS market offers relatively attractive risk‑adjusted returns. Meanwhile, policy...
Non-Agency Jumbo Lending Up Nearly Across the Board in 4Q
Non‑agency jumbo mortgage originations surged in the fourth quarter, pushing total nonconforming loans to $401 billion for 2025 and lifting the share of such loans to 20.9% of all originations. The Biden‑era administration’s executive order, signed by President Trump, directs the...
FHA to Allow Early Payments on Trial Loan Mods
The Federal Housing Administration announced that borrowers enrolled in its trial loan‑modification program can now make early payments before the trial period ends. The change gives homeowners the option to reduce principal faster and avoid default during the trial. Early...
Agency Market Phones It In, Rate Refis Slow in February
Agency mortgage market showed tepid activity in February, with rate‑refinance volumes remaining sluggish. GSE credit‑risk‑transfer (CRT) issuance fell to its lowest level since 2013, while overall loan originations modestly increased across most product lines. Delinquency rates at large servicers rose...
Originations Rise Across Products in Fourth Quarter
Originations across mortgage products climbed in the fourth quarter, marking the first broad‑based increase since early 2023. The rise was driven by strong purchase demand and modest refinance activity despite higher rates. At the same time, banks reported earnings pressure...
Bank Holdings of Residential MBS Seesaw Down in 4Q
Bank holdings of residential mortgage‑backed securities (MBS) fell sharply in the fourth quarter, registering a net outflow of roughly $12.4 billion, the lowest level since early 2021. The decline was uneven, with large banks cutting positions more aggressively than regional lenders,...
Strong Demand for GSE-Eligible Loans in Non-Agency MBS
Investors are showing strong appetite for GSE‑eligible loans embedded in non‑agency mortgage‑backed securities, tightening spreads and lifting prices across the segment. The surge reflects limited agency supply and the premium investors assign to loans that meet Fannie Mae and Freddie Mac eligibility...
Share of Complaints to CFPB Receiving Relief Drops
The Consumer Financial Protection Bureau reported a sharp decline in the share of consumer complaints that receive relief, dropping to 38% in the most recent quarter. Complaint filings rose 12% year‑over‑year, driven largely by mortgage‑related issues. Mortgage lenders now account...
Better Turns to Stablecoin for Warehouse Funding Alternative
Better.com announced it will use a US‑backed stablecoin to finance its mortgage warehouse line, marking a first for a major U.S. mortgage originator. The company plans to tap USDC on a public blockchain to raise short‑term capital, bypassing traditional bank...