Agency MBS

Browse articles from all of our Newsletters related to Agency MBS.

May 2, 2016 - IMFnews

Short Takes: Mortgage Lenders are Making How Much? / Just 8 Basis Points Per Loan? / Short P2P Firms Before the CFPB Gets Around to Regulating Them? / True Mortgage Assistance / Only Mel Watt and a Few Others Know the Answer

One analyst we know recently told us about an origination shop that is making just 8 basis points per loan...

May 2, 2016 - IMFnews

Fannie and Freddie Rocking ‘n’ Rolling in Multifamily MBS; $100 Billion This Year?

Over at Freddie Mac, the GSE did $10.8 billion in issuance for the first quarter, mostly in its K-deal program, along with its small balance program, otherwise known as “SB deals.”

May 2, 2016 - IMFnews

‘Middle Tier’ Servicers Keep Gaining GSE Market Share; The Big Boys Give Up?

As a group, the 45 companies that ranked sixth through 50th had a combined portfolio of $1.668 trillion, equal to 37.5 percent of the market.

May 2, 2016 - IMFnews

Bulk Servicing Transfers Take it on the Chin in 1Q16

An estimated $24.52 billion of GSE loans were delivered into MBS during 1Q16 with the servicing rights being taken over by a servicer not affiliated with the loan seller.

April 29, 2016 - Inside The GSEs

GSE Roundup

Freddie Sets Date for First Quarter Results. Freddie Mac announced that it plans to report its first quarter 2016 financial results before the U.S. financial markets open on Tuesday, May 3, 2016. Fannie Completes 10th CIRT Transaction to Date. Fannie Mae completed its latest Credit Insurance Risk Transfer transaction last week and it’s 10th deal since the program’s inception in 2013. This deal, CIRT 2016-3, shifts a portion of the credit risk on a pool of single-family loans with an unpaid principal balance of approximately $5.7 billion to a single insurer. The covered loan pool consists of 30-year fixed- rate loans with...

April 29, 2016 - Inside The GSEs

Groups Suggest More Focused Questions in FHFA's Survey

There were just two comments regarding the Federal Housing Finance Agency’s American Survey of Mortgage Borrowers and both were generally supportive but suggested ways to enhance the survey’s usefulness. The FHFA issued a request for comment last month about the proposed survey to collect information from borrowers. The information will be used in a report highlighting the GSEs’ mortgage activities. The comment period closed this week. The National Association of Home Builders said the practical utility of information collected by the ASMB is clear and will allow for a more in-depth analysis of the mortgage market. While some argue that the information collected is duplicative of other available data, the...

April 29, 2016 - Inside The GSEs

Fannie CEO Talks Lessons Learned, Capital Level Concerns

Capital matters, according to Fannie Mae CEO Timothy Mayoupolos, who reflected on lessons learned during the crisis. In a recent speech in Washington, he noted that while Fannie was meeting its statutory capital requirements heading into the crisis, it was clearly not enough to weather the storm. “We are a mono-line company. We are restricted in diversifying our business,” he said. “So any broad disruption in housing was going to affect us. And it did,” he said, recounting the growing number of default borrowers during that time. Although he stopped short of commenting on what amount the GSEs should be recapitalized at, he did say that there is not enough capital today.

April 29, 2016 - Inside The GSEs

Fannie Mae to Start Securitizing Re-Performing Loans

This week, Fannie Mae announced it will start to securitize re-performing loans held on its balance sheet during the second half of the year. Loans that have been modified and are now performing and loans that have become current without a modification program will be included. Securitizing the once delinquent loans will help manage Fannie’s risk while dwindling down its portfolio, according to Fannie’s Bob Ives, vice president of retained portfolio asset management. “Over the long run, these securitizations can benefit investors, Fannie Mae and taxpayers.” Just weeks earlier the Federal Housing Finance Agency revealed a principal reduction program for Fannie and Freddie Mac loans.

April 29, 2016 - Inside Mortgage Trends

Data: Top Sellers of TPO Originations - 3M2016

A ranking of the top 100 sellers of third-party originations in the first three months of 2016. Based on loan-level mortgage-backed security disclosures for MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae.

April 29, 2016 - Inside Mortgage Trends

Freddie Braces for Impact of Climate Change

Mortgage financing as it exists today might have to go through significant changes if the impact of climate change worsens, particularly in areas most exposed to the risk, according to new research from Freddie Mac. While flood insurance makes it possible for borrowers to obtain home loans in areas of high flood risk, other fallout from climate change – rising sea levels, changing weather patterns, increasing temperatures – may not be insurable. “As a result, some important features ...

April 29, 2016 - Inside Mortgage Trends

Bulk Servicing Transfers Slow in 1Q16

Declining interest rates introduced considerable uncertainty into the valuation of mortgage servicing rights during the first quarter of 2016, leading to a decline in bulk transfers of agency MSR, according to a new Inside Mortgage Trends analysis. Bulk sales of Fannie Mae, Freddie Mac and Ginnie Mae servicing rights totaled just $36.16 billion during the first three months of this year, a 37.2 percent drop from the fourth quarter of 2015. That was down ... [Includes one data chart]

April 29, 2016 - IMFnews

What We’re Hearing: When in Doubt, Copy the FHA / A Long List of Suspects / Was the TRID Mess Overblown? / Freddie is Safe / Bulk MSR Deals from IMA, MVSG / Arch MI Shines / MBA Backs Mortgage Broker Marc Savitt / Bill and Joe’s Excellent Salary Adventure

Was the TRID mess overblown? Tell that to all the mortgage firms that lost money on deals...

April 29, 2016 - IMFnews

Time to Worry Again? Agency MBS Trading Hits Low for the Year. The ‘New Normal’?

Christopher Whalen, senior managing director at KBRA, noted that most of the megabanks “are showing lower mortgage banking lines, which includes MBS desk P&L [profit and loss]. Gain-on-sale is also down about 50 percent year-over-year, so that’s another factor in the balance.”

April 29, 2016 - IMFnews

A Slump for Commercial MBS in 1Q16, Including GSE Multifamily

Fannie, Freddie and Ginnie continue to dominate in multifamily mortgage securitization, capturing a combined 93.6 percent of the market in the first quarter.

April 29, 2016 - Inside MBS & ABS

Fannie to Launch MBS Backed by Re-performing Mortgages, Enhances Loan-Level Disclosures

Fannie Mae revealed plans this week to securitize re-performing loans held on its balance sheet to manage its risk and reduce its portfolio. Loans that have been modified and are now performing, coupled with loans that have become current without the assistance of a modification program, will be included in the group. “Over the long run, these securitizations can benefit...

April 29, 2016 - Inside MBS & ABS

Secondary Market Activity Increases in ‘Seasoned’ GSE Whole Loans; TRID ‘Scratch & Dent’ Should Slow Soon

Mortgage trading desks the past few months have seen a noticeable increase in whole loan trading tied to seasoned Fannie Mae and Freddie Mac loans, according to traders interviewed this week by Inside MBS & ABS. Jason Eisendrath, director of loan sale strategies for Mortgage Delivery Specialists, said the sellers include not only money-center banks, but credit unions. “The credit unions, in particular, are holding a lot of [government-sponsored enterprise] paper,” he said. MDS is a part of Mortgage Industry Advisory Corp., New York. It’s...

April 29, 2016 - Inside MBS & ABS

Fannie, Freddie on Pace for Nearly $100 Billion In Multifamily MBS Issuance by Year’s End

The government-sponsored enterprises Fannie Mae and Freddie Mac are issuing multifamily MBS in 2016 at a rate that should approach and perhaps exceed $100 billion by the end of the year, according to the latest data and projections from the pair. That compares with a Federal Housing Finance Agency GSE scorecard cap of $31 billion in volume for each, up $1 billion over last year. However, there’s a good bit of wiggle room there because Fannie and Freddie essentially have “capped” and “uncapped” buckets. The more active of the two, Fannie, churned out $12.6 billion of new multifamily MBS in the first...

April 29, 2016 - Inside MBS & ABS

Commercial Mortgage Securitization Down in Early 2016 as Both Non-Agency and Agency Sectors Slump

New MBS issuance backed by income-property mortgages fell in the first quarter of 2016 as all sectors of the market got off to a weak start in the new year, according to a new Inside MBS & ABS analysis. A total of $44.78 billion of commercial mortgages were securitized in the first three months of the year, down 11.8 percent from the fourth quarter. It marked the lowest three-month output since the second quarter of 2014, when $37.61 billion of commercial mortgages were securitized. Both sides of the industry saw...[Includes one data table]

April 28, 2016 - IMFnews

Short Takes: Ocwen’s Potential India Problem / Will Trump Penalize Servicers for Offshoring? / Altisource and Ocwen, Connected at the Hip / Bill Would Let GSEs Retain Capital / Spurs Capital Out on Its Own

Will President Trump (if elected) tax mortgage servicers that use offshore workers?

April 28, 2016 - Inside Mortgage Finance

Lawmakers Divided on GSE Payments to Affordable Housing Initiatives, Bill Introduced to Halt Payments

Underserved markets will suffer by not allowing Fannie Mae and Freddie Mac to retain capital, according to Rep. Mike Capuano, D-MA, who urged the Federal Housing Finance Agency and Treasury Department to re-examine the terms of their conservatorship. Under the current plan, the government-sponsored enterprises are not allowed to build capital and by January 2018 their reserves are expected to be wound down to zero. Capuano said...

April 28, 2016 - Inside Mortgage Finance

New York Supreme Court Reverses Ruling in Foreclosure Case, Endorsing Lenders’ Use of Electronic Note Signings

The New York State Supreme Court recently reversed a ruling in a foreclosure case, providing a favorable decision for lenders and servicers. New York Community Bank v. Daphne McClendon involved a foreclosure that was initiated in 2012. The mortgage in question was originated in 2008 by AmTrust Bank for $544,000. The note accompanying the mortgage was signed by electronic signature. The borrower challenged...

April 28, 2016 - Inside Mortgage Finance

Banks Toy With Creating an ‘FHA-Like’ Mortgage For Portfolio; But Chances of Success Are Unlikely

Having agreed to pay billions of dollars in damages for underwriting allegedly faulty FHA mortgages, the nation’s megabanks could be pondering a better idea: Creating a portfolio product that accomplishes the same task as a low-downpayment, government-backed loan. According to industry officials who claim to have knowledge of the situation, Wells Fargo and at least one other top-five ranked lender are working on such a concept, but it remains to be seen whether they will ever get there, and if they do, whether such a creation can amass any type of volume. When asked whether Wells was working on an FHA-like portfolio loan, a spokesman did not dismiss...

April 28, 2016 - Inside Mortgage Finance

Mortgage Originations Hold Fairly Steady in Early 2016 But Results Vary Significantly Among Top Lenders

Mortgage lenders that have excelled at originating refinance loans posted steady and improving originations during the first quarter of 2016 while competitors that are more focused on the purchase-mortgage market generally saw declining production levels. A new Inside Mortgage Finance analysis and ranking shows that first-lien mortgage originations totaled an estimated $380.0 billion during the first three months of 2016, down slightly from the fourth quarter of last year. That estimate could change as more information becomes available, especially from major nonbank lenders that have not yet reported first-quarter originations data. Agency indicators were...[Includes two data tables]

April 28, 2016 - IMFnews

The Final Origination Tally for 1Q16: A Slight Decline but Results Vary Among Lenders

Quicken Loans, for example, reported a 4.9 percent increase in total originations compared to 4Q15. An estimated 81.0 percent of the nonbank’s production in 2015 was refinance loans…

April 26, 2016 - IMFnews

Fannie Mae Will Focus on Reperforming Loan Securitization

As part of the program, the GSE will enhance loan-level disclosures for the RPLs to provide more transparency.

April 22, 2016 - Inside FHA/VA Lending

GNMA Eliminates Targeted Lending Initiative Due to Very Low Volume

Ginnie Mae is pulling the plug on its long-running Targeted Lending Initiative because it is no longer having an impact on overall lending in underserved urban and rural areas. TLI volume has seen more decline than uptick in recent years despite its offer of a Ginnie Mae guaranty fee reduction to encourage lenders to make more loans in underserved communities, according to an agency spokesperson. Reducing the Ginnie Mae guaranty fee lowers lenders’ expenses and, ideally, provides an incentive to increase lending. In 2005, Ginnie Mae extended the TLI to areas hardest hit by Hurricane Katrina, reducing the guaranty fee by as much as 50 percent to spur issuers to originate or purchase mortgage loans in areas where the hurricane inflicted the most damage. At one point, the program had more than 10,000 census tracts that were identified as targeted areas. Other TLI areas included those ...

April 22, 2016 - Inside MBS & ABS

Two Years After ATR Rule Adoption, Still No Borrower Claims Submitted, Says Fitch Report

Two years after the Consumer Financial Protection Bureau’s ability-to-repay (ATR) rule went into effect, residential mortgage servicers have yet to see borrower claims being brought, according to a new report from Fitch Ratings. However, Fitch says the landscape could change as certain non-qualified mortgage loans become more common. But for now, the lack of borrower claims is not surprising, the report said. Most loans, including those eligible for purchase by Fannie Mae and Freddie Mac, meet...

April 22, 2016 - Inside MBS & ABS

As Congress Formally Punts on GSE Reform this Year, Industry Participants Propose a Number of Options

The chairman of the Senate Committee on Banking, Housing, and Urban Affairs signaled this week that Congress is unlikely to take up comprehensive legislation to reform the government-sponsored enterprises before the presidential election this fall. Committee Chairman Richard Shelby, R-AL, asked the Government Accountability Office to publish a report on a variety of issues involving the GSEs and their potential future structure by Nov. 1. Shelby’s deadline could be ambitious for such a complex issue: a report published last week by the GAO on issues with nonbank mortgage servicers was requested back in October 2014. The timeline suggests...

April 22, 2016 - Inside MBS & ABS

Ginnie Mae to Eliminate 19-Year Program Targeting Underserved, Guaranty Fee Reduction Ineffective

Ginnie Mae is shutting down its long-running Targeted Lending Initiative (TLI) because it has not made much of an impact on lending to underserved urban and rural areas in recent years. Launched in 1997, the TLI was designed to encourage lenders to finance housing in underserved areas through a reduced guaranty fee. In 2005, the program played a major role in offering relief and financial assistance to homeowners in areas hardest hit by Hurricane Katrina. Under the TLI, Ginnie Mae’s guaranty fee is reduced...

April 21, 2016 - Inside Mortgage Finance

GSE Principal-Reduction Program Expected to Have Modest Impact, Increased Servicer Costs at the Margin

The new principal-reduction option for Fannie Mae and Freddie Mac loan modifications could end up affecting only about 6,000 delinquent borrowers, according to an Urban Institute analysis. The Federal Housing Finance Agency late last week announced that the government-sponsored enterprises would do principal writedowns for a small population of distressed borrowers. The program is limited to loans that were seriously delinquent as of March 31, had loan amounts of less than $250,000 and unpaid debt, including arrearages, exceeding 115 percent of the current market value of the home. The FHFA estimated...

April 21, 2016 - Inside Mortgage Finance

The TRID Drama Continues: Buyer Exits Jumbo Space; Industry Loses Hope on ‘Official Guidance’

For mortgage bankers, it was another trying week in TRID purgatory: A mid-sized nonbank exited the correspondent jumbo market because of concerns over legal liability and separately it appeared industry trade groups have given up hope that the Consumer Financial Protection Bureau will issue any type of formal guidance on cures. Meanwhile, the TRID scratch-and-dent market continues to hum along and the consumer watchdog agency has begun examining residential lenders for compliance with the integrated disclosure rule. “TRID exams have commenced...

April 21, 2016 - Inside Mortgage Finance

Agency Servicing Market Continues Tilting From Banks to Nonbanks, From Top to Second Tier

The evolutionary flow of the slow-growing agency mortgage servicing market continued in the first quarter of 2016 as many of the big names peeled back and fast-growers kept growing, according to a new analysis and ranking by Inside Mortgage Finance. Overall, the agency MSR space expanded by a meager 0.2 percent during the first three months of 2016. Slow growth is typical of heavier refinance periods, and refi business at Fannie Mae, Freddie Mac and Ginnie Mae was up a combined 1.9 percent from the fourth quarter. Although purchase mortgages accounted for half of the first-quarter market, the volume of such loans securitized by the three agencies was down 12.6 percent from the previous period. Ginnie continued...[Includes two data tables]

April 21, 2016 - IMFnews

The Mortgage MSR Evolution Continues: From Banks to Nonbanks

Nonbanks serviced $2.085 trillion of agency MBS at the end of March, a 2.9 percent increase from the fourth quarter.

April 15, 2016 - Inside The GSEs

GSE Roundup

FHFA’s Revised NPL Sale Guidelines: This week, the Federal Housing Finance Agency enhanced its nonperforming loan sale guidelines with three key changes. NPL buyers must evaluate borrowers whose mark-to-market loan-to-value ratio is above 115 percent for modifications that include principal reduction and/or arrearage for forgiveness. NPL buyers cannot “walk away” from vacant properties. …

April 20, 2016 - IMFnews

Short Takes: All in the Mortgage Family / Can Ditech’s TPO Strategy Work? / The Megabanks Feeling Less Love for GSE Loans? / 38,865 Fannie Mae Shareholders / FRB Sets 1Q Production Record

Would you lend money to your relatives? One mortgage firm has made it a business model...

April 20, 2016 - IMFnews

Fannie Mae Captured a Slice of Market Share in a Slumping 1Q16

Wells Fargo was the top seller to the GSEs in the first quarter with $22.75 billion, followed by Quicken Loans ($11.33 billion) and JPMorgan Chase ($6.87 billion).

April 19, 2016 - IMFnews

Short Takes: Wells Fargo Stays the Course on FHA / But FHA Production Drops / A Large MSR Auction from Prestwick / A FHLB Deal from Phoenix / New Hires for New Penn and Ellie Mae

Wells Fargo spokesman Tom Goyda called FHA lending an “important tool” for the bank.

April 19, 2016 - IMFnews

Senate Banking Chair Wants GAO and CBO to Investigate Change in Course at the FHFA

Shelby noted that Congress “has a responsibility to conduct proper oversight” over the FHFA and the GSEs.

April 18, 2016 - Inside the CFPB

GSE Credit-Risk Transfers Face Incremental Losses from TRID

Fannie Mae and Freddie Mac are not conducting loan-level reviews for compliance with the CFPB’s integrated disclosure, and that threatens investors in the pair’s future credit-risk transfer transactions with the possibility of some modest losses because of lender compliance violations, according to a recent report from Moody’s Investor Service. “We expect overall losses on these transactions owing to TRID violations to be fairly small, despite our expectations that the frequency of violations will be high, at least initially,” analysts at the rating service said. “Furthermore, lender representations and warranties and the government-sponsored enterprises’ ability to remove defective loans from the transactions will likely mitigate some of these losses.” Damages for TRID violations are less significant for a securitization transaction compared ...

April 18, 2016 - IMFnews

GAO: FHFA’s Indirect Oversight of Nonbanks is Not Enough

MBA chief David Stevens told Inside The GSEs that given the recent growth in the nonbank servicing sector, it’s appropriate for regulatory authorities to ensure these institutions are effectively supervised.

April 7, 2016 - Inside Mortgage Finance

Agency Seller/Issuer Activity by Channel - 12M15

April 15, 2016 - Inside The GSEs

Freddie Launches Platform for Housing Counseling Made Easy

Freddie Mac wants to help more borrowers sustain homeownership through counseling. Last week, the GSE invested in a modernized platform to streamline the process and partnered with Hope Loan Port, a nonprofit aimed at sustaining homeownership through its technology solutions. The new platform, available now, will automate several key processes, including collecting, analyzing and reporting client data, assessing client readiness to buy a home, and referring clients who are ready for successful homeownership to lenders, seamlessly. A dedicated software-as-a-service (SaaS) based platform highlights the modernization initiative and will provide the participating Borrower Help Centers with the tools to work with consumers, connect with lenders and share sensitive data securely.

April 15, 2016 - IMFnews

What We’re Hearing: FHFA Says Ask the IRS / Maybe, Maybe Not / Jeb Hensarling is Not Happy / Nonbank Will Stop Buying Jumbos. Reason: TRID / Ocwen and Freddie Part Ways / Will Fairholme Win the GSE ‘Bet’?

So, in other words, a consumer who’s having trouble making his/her mortgage payment soon will have to give Uncle Sam more money in taxes...

April 15, 2016 - Inside MBS & ABS

Moody’s: GSE Risk-Transfer Deals at Risk for Losses Due to TRID Violations

With Fannie Mae and Freddie Mac doing only surface checks for TRID regulatory compliance and not complete reviews, future credit-risk transfer deals from the two government-sponsored enterprises could be at risk from lender compliance violations, according to Moody’s Investors Service. Numerous challenges have arisen in the non-agency secondary market because of concerns about liability for errors in the new mortgage disclosures. But since TRID became effective on Oct. 3, 2015, Fannie and Freddie are only checking to make sure that the correct forms are being used. This lack of diligence for TRID violations may amount...

April 15, 2016 - Inside MBS & ABS

FHFA Unveils Limited GSE Principal Reduction Program, Changes to Nonperforming Loan Sales

The Federal Housing Finance Agency this week announced a limited principal reduction option for certain nonperforming, underwater borrowers with Fannie Mae or Freddie Mac home mortgages. The agency characterized the program as the “final crisis-era modification program [and] a last chance for seriously delinquent underwater borrowers to avoid foreclosure.” The program is limited...

April 15, 2016 - IMFnews

FHFA Rolls Out Principal Reduction Plan; Can it Fly?

Servicers must round up eligible customers and present offers by October 15 of this year.

April 15, 2016 - IMFnews

Are the GSEs Buying Mortgages That Really Aren’t TRID Compliant? Does it Matter?

The source continued: “Fannie and Freddie have the right to put non-compliant loans back to the originator. Eventually, someone will ask whether they knowingly bought loans that had TRID violations…"

April 14, 2016 - Inside Mortgage Finance

Fannie and Freddie Securitized Fewer Private MI Loans In Early 2016 as Purchase-Mortgage Market Stalled

The flow of home loans covered by private mortgage insurance into new Fannie Mae and Freddie Mac mortgage-backed securities fell by 11.5 percent during the first quarter of 2016, according to a new Inside Mortgage Finance analysis and ranking. That decline mirrored the 11.6 percent drop in purchase-mortgage securitization from the fourth quarter by the two government-sponsored enterprises. A slight uptick in refinance activity partly offset the slide in purchase-mortgage business. Private MIs do...[Includes two data tables]

April 14, 2016 - IMFnews

GSEs Securitized Fewer Private MI Loans in 1Q16 as Purchase Market Slowed

Private mortgage insurance firms adjusted their pricing in early 2016…

April 13, 2016 - IMFnews

Short Takes: Jamie Dimon Feels Their Pain / JPM Wants to Give Its Delinquent Servicing to the GSEs / About All Those Mortgage Regs… / A New HR Chief for Stonegate Mortgage

If Jamie Dimon really cares about the pain suffered by his customers, he may want to keep his default management servicing inhouse…


Does your lending shop have any plans to make non-jumbo, non-QM loans this year? These would be loans similar to "Alt A" and subprime products made BEFORE standards were loosened severely in the 2004 to 2007 era.





It’s under consideration, maybe by 3Q or 4Q.


We were going to until the TRID "error" mess hit.


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