Agency MBS

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

June 28, 2016 - IMFnews

FHA Should Set Criteria for Pricing, MI Executive Says

Exclusive data compiled by Inside Mortgage Finance show the FHA’s share of the primary MI market was 39.9 percent in the first quarter of 2016, compared to 33.5 percent in the first quarter of last year.


June 28, 2016 - IMFnews

Correspondent Purchaser on the Hook for Fannie AU Fees Tied to One of Its Sellers

In the end, the court blamed NAMC, the firm buying the mortgages from GFS on a correspondent basis…


June 27, 2016 - IMFnews

Short Takes: UWM is Hitting its Stride / TRID Not a Problem / Flagstar Moves on From Uncle Sam / White House Stalling in GSE Case / Chris George Gets the Nod From MBA

The CEO of United Wholesale Mortgage is projecting that in June the lender could fund $1.9 billion, which would be the firm’s best month ever…


June 27, 2016 - IMFnews

Mortgage Companies to Increase Tech Spending

Velocify, a provider of sales automation software, found that lenders that invest in technology to meet changing borrower expectations are more likely to grow.


June 27, 2016 - IMFnews

Phoenix Capital Selling $1.08 Billion of GSE Servicing Rights

The mortgages currently are being subserviced by a firm described as “DMI.”


June 27, 2016 - IMFnews

New Bill Presses Treasury to Research Ending GSE Conservatorships

The Congressman noted that outside of a study done in 2011, the administration has had little engagement with Congress on a path toward ending the conservatorships, which are almost eight years old...


June 27, 2016 - IMFnews

GSE Loan Repurchase Activity Fell to Record Low in 1Q16

Actual repurchases or replacements were substantially below the $541.8 million in buyback requests that were withdrawn by the GSEs during the first quarter…


June 24, 2016 - Inside The GSEs

GSE Roundup

Freddie Completes $706 Million NPL Sale. Freddie Mac announced this week that it sold a large chunk of a $706 million deeply delinquent loan portfolio to Lone Star Funds’ LSF9 Mortgage Holdings. LSF9 was the winning bidder on four pools and Upland Mortgage Acquisition Company II won one. In total, 2,879 mortgage loans were offered through five separate mortgage pools. The loans have been delinquent for an average of approximately five years. As the company continues to trim its retained portfolio, the new sale marks the GSE’s third nonperforming loan auction of the year. The first was a $1.4 billion sale in March, followed by a $130 million transaction in June. Fannie Announces Latest NPL Sale. Last week Fannie Mae announced its latest sale of non-performing loans, including...


June 24, 2016 - Inside The GSEs

New Fannie Headquarters Under Construction Raises Eyebrows

Fannie Mae’s $759 million new headquarters has been the centerpiece of public criticism over the past week. A Federal Housing Finance Agency Office of the Inspector General report criticized the FHFA for allowing what it called excessive spending on the downtown Washington, DC, headquarters, which broke ground in mid-May. The review stemmed from an anonymous hotline complaint alleging overspending on the project. The IG questioned the FHFA’s oversight and recommended the agency closely scrutinize the building’s plans and budget. The problem arose when the cost to build out the new space to Fannie’s specifications increased by 54 percent from January 2015. Costs rose from $164.32 square feet to $252.81 square feet. Then back down some in May 2016 to $223.35/square foot.


June 24, 2016 - IMFnews

What We’re Hearing: Mortgage Lenders to England: Thanks for Igniting Another Refi Boom / Servicers Cringe? Maybe Not / Brexit, Plunging Rates and the GSE ‘Hedging’ Issue / More on a Possible FHA MIP Cut / Capsilon Gets Investment from PE Firm

What does the Brexit vote for Fannie Mae and Freddie Mac? Hedging losses, maybe?


June 24, 2016 - IMFnews

Single-Security Transition Could Become Model for Figuring Out Future of GSE ‘Legacy’ MBS

In fact, the transition to a new GSE single security that’s scheduled to start in 2018 could become a test run of sorts for the even bigger changes ahead…


June 24, 2016 - Inside MBS & ABS

Single-Security Transition Could Become Model for Figuring Out What to Do With GSE MBS After Reform

Mortgage-finance reform doesn’t look to be anywhere on the horizon, but at some point government policymakers will have to figure out what to do with trillions of dollars of Fannie Mae and Freddie Mac MBS if the two government-sponsored enterprises are put out to pasture. In fact, the transition to a new GSE single security that’s scheduled to start in 2018 could become a test run of sorts for the even bigger changes ahead, according to a paper published by the Urban Institute. Crafted by five mortgage-industry veterans, “A More Promising Road to GSE Reform” is centered on the creation of a new government corporation that would replace Fannie and Freddie. The National Mortgage Reinsurance Corp. would issue...


June 24, 2016 - Inside MBS & ABS

New Concerns Arise About Nonbanks’ Ability To Meet Ginnie Mae MBS Servicing Advances

Ginnie Mae is once again getting anxious about the growing – and large – presence of nonbanks that service the agency’s MBS, fearing a liquidity crisis could erupt because some firms rely too heavily on “non-traditional and very sophisticated funding mechanisms.” In a statement issued to Inside MBS & ABS this week, Ginnie contrasted nonbanks to depositories “who traditionally were the primary issuers of Ginnie Mae MBS.” The agency added...[Includes one data table]


June 24, 2016 - Inside MBS & ABS

Diverse Interest Groups Ask FHFA to Cut GSE Guarantee Fees, Reduce LLPAs

Fannie Mae and Freddie Mac MBS guarantee fees are too high, given the strong credit profile of new business since the financial crisis, according to a diverse collection of real estate, banking and consumer interest groups. The groups called on the Federal Housing Finance Agency to lower MBS guarantee fees charged by the two government-sponsored enterprises, and to reduce or eliminate the loan-level pricing adjustments that are typically wrapped into the consumer’s note rate. The average g-fee has jumped from 22 basis points in 2009 to 58 bps in 2014, including the 10 bps surcharge that Congress mandated in 2011 to cover a payroll tax cut. Loan-level pricing adjustments can total...[Includes one data table]


June 23, 2016 - Inside Mortgage Finance

Housing Outlook Remains Stable, But First- Timers Face Affordability, Credit Challenges

The housing market has been fairly stable in 2016, but industry insiders say decreased affordability and credit access could impede the multiyear housing recovery. With interest rates lower than expected, the Mortgage Bankers Association raised its 2016 origination forecast to $1.60 trillion in May from its January projection of $1.38 trillion. It expects purchase originations to increase in 2017 and 2018, thanks to economic growth and a strong job market. But many first-time homebuyers may be...


June 23, 2016 - Inside Mortgage Finance

Sales of Ginnie Servicing Prove Difficult; Deals Are Getting Done, But Risk of FHA MIP Cut Overhangs the Market

The sale of residential mortgage servicing rights has been gaining steam the past few weeks – unless you happen to be in the market for Ginnie Mae product. In particular, there’s a growing concern about price discounts on Ginnie servicing rights, and a strong belief that the agency – including its president, Ted Tozer – is once again getting anxious about so many nonbanks being such large players in the market. Tozer is so concerned about the matter that the agency – with the help of the Mortgage Bankers Association – is hosting what’s been described as a “liquidity summit” in Washington, DC, with several stakeholders and regulators, including officials from the Federal Reserve and U.S. Treasury. The summit, closed to the media, is scheduled for June 24. Ginnie issued...


June 23, 2016 - Inside Mortgage Finance

First-Time Homebuyer Share of Home Purchases Increases, Origination Volume Up Sharply in 1Q16

First-time homebuyers account for a growing share of home purchases, and even though housing inventory is limited, originations of mortgages for first-time homebuyers are up sharply. First-time homebuyers accounted for 40.8 percent of home purchases in May, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The share for first-time homebuyers, based on a three-month moving average, was the highest level seen in more than five years. “Demand from first-time homebuyers is...


June 23, 2016 - Inside Mortgage Finance

Jumbo Market Closely Tracked Overall Trends in 1Q16 Mortgage Originations, Non-Agency Fared Slightly Better

Jumbo mortgage originations declined by 2.0 percent during the first quarter of 2016, mirroring the modest downturn in overall mortgage lending from the previous quarter. Jumbo originations – including loans that were within the high-cost loan limits for Fannie Mae, Freddie Mac, FHA and VA – totaled $100.61 billion in the first quarter, according to a new analysis and ranking by Inside Mortgage Finance. The sector accounted for 26.5 percent of total originations during the first three months of the year, down slightly from a 26.7 percent share in the fourth quarter. The jumbo share of total originations has generally been...[Includes three data tables]


June 22, 2016 - IMFnews

Short Takes: FHA Ready to Cut the MIP? / 100 Guests at Ginnie Liquidity Summit / In Demand: Mortgage Underwriters / Citadel Employee Count at 160 and Growing / Freddie Keeps Selling NPLs

Roughly 100 guests were invited to the Ginnie Mae "liquidity summit," including regulators from the Federal Reserve.


June 22, 2016 - IMFnews

IMA Selling Almost $5 Billion of GSE Servicing Rights

The market is beginning to see more MSR auctions, much of it tied to GSE product...


June 22, 2016 - IMFnews

25 Trade and Community Groups Tell FHFA Chief Mel Watt: Kill LLPAs Now

The mortgage industry and others want LLPAs eliminated now...


June 22, 2016 - IMFnews

Federal Regulators Plead for Housing Finance Reform Legislation, Note They are ‘Approaching the Limits of their Ability to Enact Reform’

Financial regulators tell Congress: Do something now on GSE reform before it's too late...


June 21, 2016 - IMFnews

Short Takes: CFO of Marketplace Firm Departs / The Coming Bloodbath in Marketplace Lending? / More Non-Delegated Options for Sellers / MiMutual Posts Nice Production Gain / He’s Back: GSE Wag Bill Maloni

Consultant Joe Garrett noted that if investors are worried about marketplace lenders in the current credit environment, just wait until the economy eventually goes south...


June 21, 2016 - IMFnews

Carrington Will Fund GSE Loans Via Mortgage Brokers

Although Carrington does not disclose lending volumes, at March 31, it was the 10th largest servicer of Ginnie Mae loans with a balance of $32.25 billion, according to government data.


June 21, 2016 - IMFnews

See You in September: Fannie Sets New Release Date for DU 10.0

What caused the delay of DU 10.0? “Issues,” said the GSE…


June 20, 2016 - IMFnews

MIAC and MountainView Out with New MSR Auctions

More servicing auctions are hitting the market but sellers have to be realistic on pricing...


June 20, 2016 - IMFnews

The Bank Incentive to Hold Mortgages in Portfolio Isn’t Going Away Anytime Soon

It’s no secret that some banks, including Wells Fargo, are retaining GSE-eligible mortgages in portfolio instead of delivering them to Fannie Mae and Freddie Mac. When and if the trend will reverse is anyone’s guess…


June 17, 2016 - Inside FHA/VA Lending

Radian Says It’s Ready for DU 10.0, Will Insure Non-Traditional Loans

Radian Guaranty has voiced its support for Fannie Mae’s updated Desktop Underwriter 10.0 and reiterated its ability to underwrite borrowers with non-traditional credit, one of the changes made in the latest version of DU. The Philadelphia-based private mortgage insurer said it is working on supporting MI applications for borrowers with nontraditional credit through other submission methods, including delegated submissions. Initially, applications will be accepted through MI Online’s “Quick Submit” option, or borrowers may fax or email their application and documents to intake@Radian.biz. Teresa Bryce Bazemore, president of Radian, said nontraditional underwriting is nothing new to Radian, which has maintained a small share of such loans. “We always had the ability to look at those loans and underwrite them manually,” she said. Besides nontraditional credit underwriting, the updated DU 10.0 includes ...


June 17, 2016 - Inside FHA/VA Lending

USDA Securitization Down in 1Q16, Agency to Lower Premium, Fees

Ginnie Mae securitization of rural home loans got off to a wobbly start in the first quarter of 2016 as securitization volume fell 13.8 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie data. Approximately $3.9 billion in loans with a USDA guarantee were securitized during the first three months, with the top five issuers accounting for $2.1 billion of mortgage-backed securities produced by the segment during the period. USDA securitization volume dropped 9.2 percent year over year. Top USDA issuer Chase Home Finance accounted for $1.2 billion of securitized rural housing loans, while PennyMac, in distant second place, finished the quarter with $378.5 million. Wells Fargo ($294.0 million), Pacific Union Financial ($122.8 million) and Amerihome Mortgage ($102.2 million), in sequential order, comprised the rest of the top five issuers. Pacific Union climbed over ...


June 17, 2016 - IMFnews

What We’re Hearing: Worrying About Nonbanks – Again / Banks and the GSEs: The Love Affair is Over / Keep it Under $5 Billion So the FHFA Won’t See It / GSE Discounts are Back? / Does the FHFA IG Have Enough To Do? / If You Give a Child a Credit Card…

Late this week we were hearing reports about one mortgage cooperative that was trying to strike a deal with one of the GSEs regarding pricing breaks for its members...


June 17, 2016 - IMFnews

Fannie Mae Unveils Three CIRT Deals, Largest Transactions To Date

Although Fannie bragged about the size of the CIRT deal, it did not identify its counterparties.


June 17, 2016 - Inside MBS & ABS

UI Suggests GSEs Avoid Overreliance on STACR, CAS Credit-Risk Transfers to Prevent Future Rate Volatility

The Urban Institute is warning against Fannie Mae and Freddie Mac putting all of their eggs into one credit-risk transfer basket. The CRT programs at the two government-sponsored enterprises have relied heavily on structured debt notes sold to capital market investors – Freddie’s Structured Agency Credit Risk and Fannie’s Connecticut Avenue Securities – as well as reinsurance. Although the influx of private capital is a good thing, Karan Kaul, research associate with UI, said...


June 17, 2016 - Inside MBS & ABS

Banks Have Many Incentives to Hold Mortgages in Portfolio Instead of Following Chase’s Non-Agency MBS Blueprint

A $1.98 billion non-agency MBS issued by JPMorgan Chase Bank in April prompted interest from a wide variety of industry participants, but other big banks appear unlikely to issue similar deals, according to analysts at Moody’s Investors Service. Moody’s was one of the firms to place AAA ratings on Chase Mortgage Trust 2016-1. The deal was unique in that 74.0 percent of the 5,353 mortgages in the MBS were eligible for sale to the government-sponsored enterprises. And it was...


June 17, 2016 - Inside MBS & ABS

MBS Outstanding Held Steady in Early 2016; Foreign Buyers, Pension Funds Boost Holdings

The outstanding supply of single-family MBS in the market fell slightly in the first quarter, but you have to go two paces to the right of the decimal point to see it. A new Inside MBS & ABS analysis indicates that outstanding MBS totaled $6.407 trillion as of the end of March. That was down 0.01 percent from the previous quarter, stalling a steady expansion of the market that took place in 2015. And with a modest 0.2 percent increase in total single-family mortgage debt outstanding, the modest contraction in MBS nudged...[Includes two data tables]


June 17, 2016 - IMFnews

MBS Outstanding Holds Steady; Foreign Buyers, Pension Funds Boost Holdings

Ginnie Mae officials often tout the popularity of their MBS in Asian and other overseas markets…


June 16, 2016 - Inside Mortgage Finance

Millennials, Mortgages and Mixers? Lenders Say Strong Need For Increased Borrower Education on Available Resources

Millennials are in the dark when it comes to knowing about mortgage resources, lenders said, and recent research shows that there are millions of millennials who could afford to buy a home today but don’t know it. “The problem isn’t always that they don’t qualify or have the credit scores, the big problem is they don’t know it,” said Rob Chrane, CEO of Down Payment Resource, speaking on a mortgage panel at the National Association of Real Estate Editors conference in New Orleans last week. “At the same time, we know from our database there are almost 2,500 different programs out there that represent billions of dollars in forms of downpayment assistance and other aid.” Paul Anastos, president of Mortgage Master, a subsidiary of loanDepot, said...


June 16, 2016 - Inside Mortgage Finance

Desktop Underwriter 10.0 Delayed, Fannie Mae Working to Correct ‘Issues’ Tied to New Program

Fannie Mae has postponed the anticipated release of Desktop Underwriter 10.0, an updated version that included using trended credit data. Something went wrong during the testing phase, prompting the government-sponsored enterprise to announce last week that the program will not be implemented during the weekend of June 25 as planned. Fannie apologized to its customers noting that it would be prudent to delay the release until the issues are addressed. Fannie isn’t...


June 16, 2016 - Inside Mortgage Finance

Seneca’s Outsourcing Deal with Nationstar Could Be a Sign that PE Firms Are No Longer in Love with MSR

Seneca Mortgage Servicing LLC, which entered the business just three years ago, has decided to outsource the monthly processing of loans to Nationstar, a sign that private-equity firms are no longer so enamored with the returns generated by mortgage servicing rights. According to a statement issued by Nationstar, it will service all of Seneca’s $50 billion portfolio and any rights Seneca might obtain going forward. Moreover, it will take control of the firm’s Depew platform in upstate New York. No terms were disclosed. However, according to interviews with servicing advisors, Seneca – whose backers include The Blackstone Group, EJF Capital and Arbor Commercial Mortgage – may not be...


June 16, 2016 - Inside Mortgage Finance

Mortgage Debt Outstanding Climbs Over $10 Trillion Mark for First Time Since 2012; Nonbanks Keep Rolling

The supply of single-family home loan debt in early 2016 grew for the fourth consecutive quarter to hit $10.008 trillion, its highest level in three and a half years, according to Federal Reserve data released late last week. The first-quarter gain was a modest 0.2 percent from the end of last year, and a 1.5 percent increase from March 2015. But the servicing market is a slow-changing glacier, and steady increases over the past year are another indicator that the mortgage market has largely recovered from the housing recession. Most of the gain came...[Includes two data tables]


June 16, 2016 - IMFnews

More Signs of Trouble for PHH Mortgage? Nonbank Cuts Early Funding Facility with Fannie Mae

In trading Thursday, the share price of PHH’s common stock was down almost 2.6 percent...


June 16, 2016 - IMFnews

Short Takes: Hillary, Donald, Fannie and Freddie? / NAHB Prefers ‘Ranieri-Zandi’ Plan / Spend It. Otherwise Uncle Sam Gets That Money! / Fannie Eventually Will Make a Killing in RE / Former New Century Chief Lands at Carrington

Eventually, Fannie Mae will sell its historic HQ site at 3900 Wisconsin Avenue in Washington, DC, and making a killing on the sale...


June 16, 2016 - IMFnews

FHFA Chief Rebuts IG Claim Regarding Not Controlling Costs on New Fannie Mae HQ

FHFA chief Mel Watt also points out that the sale of Fannie’s existing properties will result “in substantial additional financial benefits.”


June 16, 2016 - IMFnews

Mortgage Debt Outstanding Hits $10 Trillion Mark for the First Time Since 2012

The residential servicing market is a slow-changing glacier…


June 15, 2016 - IMFnews

Short Takes: Mortgage Trade Group v. Mortgage Trade Group? / MBA’s Stevens Reacts / Quicken Selling Loans to Berkshire’s Mortgage Unit / Why Moody’s Can't Rate JPM’s LO System / Fannie Hires New Chief Audit Executive

MBA President Dave Stevens told IMFnews: “We respect the work of Glen [Corso, CMLA director] and his organization greatly...."


June 14, 2016 - IMFnews

FHFA’s Attempt to Consolidate Shareholder Cases Denied

A key judicial review panel recently said the Federal Housing Finance Agency’s March bid to consolidate all the Fannie Mae and Freddie Mac shareholder lawsuits and transfer them to one court was “inappropriate” and rejected the government’s request.


June 14, 2016 - IMFnews

Lenders Say No More to Loosening Credit Standards

Lenders reported a moderate net easing of credit standards across all loan types over the past three months, according to Fannie Mae’s second quarter 2016 Mortgage Lender Sentiment Survey released this week.


June 13, 2016 - Inside the CFPB

Fannie Mae Clarifies Expectations Re: TRID Error Self-Reporting

Fannie Mae recently provided sellers with a little more guidance on its expectations related to lender self-reporting of errors in complying with the CFPB’s new disclosure regime under the Truth in Lending Act and the Real Estate Settlement Procedures Act.


June 13, 2016 - IMFnews

Open Mortgage Now Approved as GSE Seller

Open Mortgage announced they have been approved as a seller with Fannie Mae, joining the likes of So-Fi, another marketplace lender which was approved as a Fannie seller/servicer in May.


June 13, 2016 - IMFnews

Fannie Postpones DU 10.0 Release, Cites Testing Issues

Originally scheduled to be implemented the weekend of June 25, Fannie Mae announced on Friday that it is delaying the release of Desktop Underwriter Version 10.0 due to concerns that came up during the testing phase.


June 10, 2016 - Inside Mortgage Trends

Fannie Set to Use Trended Credit Data

Later this month, Fannie Mae will begin to use trended credit data when completing credit risk assessments on mortgages submitted to the government-sponsored enterprise. Fannie claims the data “allow a smarter, more thorough analysis” of a borrower’s credit history, though the mortgage approval rate by the GSE isn’t expected to change much. In Selling Guide Announcement SEL-2016-04 published last week, Fannie detailed plans for trended credit data in the pending ...


Poll

What is the very best source of new mortgage customers for your lending shop? (Choose one only.)

Leads provided to me by employer

13%

Paid internet/website leads

9%

Real estate agents/Realtors

31%

Homebuilders

6%

Our existing customer base/our servicing customers

19%

My own personal sales "leads" database

13%

Other

9%

Housing Pulse