2019Q3 HMBS Issuer League Tables – Two Can Play That Game

AAG remains the frontrunner HMBS issuer for the third quarter of 2019, with $1.38 billion of issuance and 23% market share. Note AAG’s totals are all new originations, with no highly seasoned pools issued. Longbridge took sole possession of second place with $1.29 billion of issuance and a 21.5% share. Longbridge’s rise in the rankings is attributable in large part to a spate of highly seasoned pool issuance during the quarter. RMF previously made similar leaps in the league tables with their seasoned pool issuances. As a result of Longbridge’s surge, RMF was pushed to third with $1.11 billion issued and 18.6% market share, FAR moved down a notch to fourth with $855.2 million issued and 14.3% market share, and PHH Mortgage Corp placed fifth with $665.8 million and 11.1% market share. These five issuers accounted for 88.5% of all issuance, up from 2019Q2’s 83%, and back near the Top-5 concentration high of 91% at year-end 2018. There were 13 active HMBS issuers during the quarter. Live Well Financial is gone, and one-time issuer Synergy One Lending did not issue securities in the quarter.

2019Q3 saw $2.33 billion of HMBS issued, up from both Q2’s $1.98 billion and Q1’s $1.67 billion. For the first nine months, industry volume is off 19% from a year ago. Total HMBS issuance in the first nine months of 2018 was $7.43 billion. Even with highly seasoned pool issuance, expect lower HMBS issuance volume going forward.

New View Advisors compiled these rankings from publicly available Ginnie Mae data as well as private sources.

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