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Nonbank Footprint in GSE Market Continues to Grow

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Nonbank seller-servicers have steadily grown their share of the GSE market in recent years, drawing more attention from regulators and policy analysts who are concerned about counterparty risk.
Nonbank originators accounted for 50.9% of single-family loans pooled in Fannie Mae and Freddie Mac mortgage-backed securities during the first quarter of 2019, up from a 47.8% share a year ago, according to figures compiled by Inside The GSEs.
Nonbank sales to the GSEs in the first three months of the year were down 10.9% from the same timeframe in 2018, while the overall market was off 16.4% over that period.
Nonbank servicers are also gaining ground. At the end of March, they serviced $1.838 trillion of loans in Fannie and Freddie MBS pools, up 8.3% from the year before. The overall GSE servicing business grew 2.4% over that period. For more details and exclusive tables, see the new edition of Inside The GSEs, now available online.