GSE Repurchase Activity

In 4Q13, Fannie Mae and Freddie Mac accelerated their efforts to wrap up repurchase activity on legacy loans originated before 2008, with Freddie resolving 62 percent more demands than it had in the third quarter and Fannie upping its resolutions 89 percent. At the same time, Fannie's and Freddie's new quality control measures put more scrutiny on newer loans and by the end of last year, 12.1 percent of unresolved buyback demands involved mortgages that were securitized in 2013.

For many lenders, the big picture gets lost amid the flood of daily requests from Fannie and Freddie. They have no clear picture of their total exposure, how well they’ve done fighting back, or how their repurchase record compares to others in the industry.

GSE Repurchase Activity, a semiannual Inside Mortgage Finance data report, provides information on all buyback motion in the reporting period. For each lender—including your own company—this data report breaks down by origination year

  • Repurchases made during the reporting period,
  • Demands pending or in dispute as of the last day of the reporting period, and
  • All demands withdrawn during the reporting period.

  • In the current report, Full Year 2013, you’ll find information on 2,476 lenders. For each of these lenders, you’ll have at a quick glance the total picture: the volume of repurchases and withdrawn demands during the year-long period as well as the volume of pending or disputed demands at December 31. For each lender, you’ll also know the breakdown for each category between demands from Fannie and those from Freddie.

    You’ll find the lenders ranked by volume—how high on the list are you—and also listed alphabetically. For greater ease of use in your analysis and research, the report is also available in Excel™ format.

    Use the data in GSE Repurchase Activity to benchmark your repurchase exposure and mitigation rate. See how the demands against your business compare to other lenders who have sold loans to Fannie and Freddie. Find out how they’ve fared in turning back the demand and whether your record is above or below par.

    Choose the purchase option that best suits your needs:

    1. Subscribe to GSE Repurchase Activity—Receive semiannual updates in Excel™ format. With this option, you’ll know the current status for all lenders and you’ll be able to track past experience and trends with the full flexibility to sort and view the data in the way best suited to your research...$2,538 per year
    2. Purchase current-period GSE Repurchase Activity in Excel™ format—Delivered in spreadsheet format, you’ll have unlimited flexibility to sort and view the repurchase, pending and withdrawal information from the most recent reporting period….$1,878
    3. Purchase current-period GSE Repurchase Activity in print or downloadable PDF—Presented in volume and alphabetic order, this 282-page report lists all of the lenders impacted in the most recent half-year period….$878
    4. Purchase past GSE Repurchase Activity reports—First Half 2013, Full Year 2012, First Half 2012, 2006-2011 (titled “Analyzing GSE Mortgage Buyback Demands”).

Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

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