Secondary markets

December was the fifth month out of the last six in which credit conditions loosened, the Mortgage Bankers Association reported.

The change reflects a growing focus on an emerging banker segment that sells loans to the company on a non-delegated basis and includes a greater focus on servicing retention.

The loans in the portfolio on offer have nearly 11 months of seasoning, indicating they were amassed during a loan production boom that has contributed to higher average servicing deal sizes.

The Duty-to-Serve goals currently under review drew some objections from a coalition of affordable housing groups last year.

The government-sponsored enterprise also unveiled two new tranche slices for investors to purchase.

The company plans to hire an unspecified number of people in servicing as a result of the shift, with a particular focus on recruiting people for “customer-facing” positions.

The metric’s imminent end after more than 40 years means servicers need to put replacement plans in motion if they haven’t already.

The new leader, who officially joined the government mortgage-bond insurer on Jan. 3, is the first Senate-confirmed holder of the post in close to five years.

Mortgage performance in November was improving, coming close to crossing a key threshold for pandemic-era recovery, but Omicron raises questions about whether that trend will continue.

Average per-loan charges last year were little changed despite the addition of a new temporary fee for refinancing. Those for loan-to-value ratios above 80%, home-purchase financing and adjustable-rate mortgages only rose slightly.