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Business, Earnings Improve at MGIC


New quarterly business was solidly higher at MGIC Investment Corp., as were earnings. Also improving was the rate of delinquency on its book of business.

From July 1 through Sept. 30 of this year, income before taxes at the Milwaukee-based mortgage insurance company was $232 million, according to third-quarter earnings data.

Results at the parent of Mortgage Guaranty Insurance Corp. were better than the same three months last year, when income came to $184 million.


GSE Mortgage Refinances Bounce Off 7-Yr Low


After plunging to the weakest level in at least seven years, government-sponsored enterprise refinance volume bounced up to the second-slowest month during the period. HARP production fell to a new low.

In August, there were 90,506 single-family loans backed by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. that were refinanced by primary mortgage originators.

GSE refinance activity increased from 81,982 one month previous, when the pair of secondary mortgage lenders saw the fewest refinances since at least 2011.


Nomura Reaches $480 Million RMBS Settlement


The government and the American subsidiary of Nomura Holdings Inc. have reached a settlement over allegations the investment banker misled investors about residential mortgage-backed securities.

Nomura Holding America Inc. is accused by the Department of Justice of misleading RMBS investors in 2006 and 2007 about the quality and characteristics of securitized loans.

Nomura is accused of claiming in RMBS marketing materials that its due diligence process was "extensive," "disciplined" and "carefully developed."


US Bank Grows Mortgage Assets, Lifts Originations


U.S. Bancorp increased home lending activity and expanded the size of its residential investment portfolio. But mortgage earnings deteriorated, while servicing was reduced.

Income before income taxes during the three months ended Sept. 30 at the Minneapolis-based bank-holding company was $2.3 billion, according to its third-quarter earnings report.

Results at the parent of U.S. Bank, N.A., inched up from $2.2 billion earned in the same quarter last year and also in the preceding three-month period.


Mortgage Credit Conditions Tighten


Average credit scores increased on last month's mortgage production, while averaged debt-to-income ratios declined. The tighter credit conditions came as refinances continued to make up a diminishing share of mortgage production.

The share of loans originated in September that were conventional transactions was 65 percent. Conventional share has thinned from 66 percent the same month in 2017.

A fifth of last month's production was for residential loans that were insured by the Federal Housing Administration. The share was the same as 12 months previous.