Capital markets

Returns on mortgage-backed securities in October lagged Treasuries by 37 basis points, the most since November 2016.

The unique approach Fannie Mae and Freddie Mac are each taking with their credit-risk transfer products is quickly becoming a key point of differentiation that's rekindling competition between the government-sponsored enterprises.

Fannie Mae and Freddie Mac transferred a substantial amount of credit risk to the private sector through both single-family and multifamily market transactions in the first half of the year, with activity expected to rise in 2019, according to the Federal Housing Finance Agency.

Lennar Corp. is selling a portion of its Rialto business to Stone Point Capital for $340 million, adding to Stone Point's holdings in the real estate and financial industries.

QRL Financial Services, the mortgage outsourcing division of First Federal Bank of Florida, is the latest investor to seek out better secondary market execution by purchasing electronic notes from correspondents.

Despite an overall weak mortgage originations market, Flagstar Bancorp's third-quarter earnings grew 20%, due in large part to its ongoing efforts to diversify operations.

Rising mortgage interest rates not only will continue to constrain banks' once-robust revenue from this business, they will also affect existing borrower credit quality, a report from Moody's said.

The departing CEOs of Fannie Mae and Freddie Mac oversaw significant cultural and operational shifts that made the housing finance system safer and more responsive to market needs, but a tough job lies ahead for their successors.

Industry downsizing resulted in an increase in critical defects found in closed mortgages as loan packaging errors continued to rise during the first quarter, according to Aces Risk Management.

Wells Fargo Home Lending is tapping eOriginal to launch an electronic note program, marking a step forward for the mortgage industry's push toward a more digital process.