Agency MBS

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

May 5, 2015 - IMFnews

Short Takes: CFPB Holds a Candle for the 'Credit Invisible' / Walter Gets Smacked Around Too / New Fannie MF MBS / Correction on MDS

Fannie Mae reported Tuesday that the GSE issued $10.4 billion of multifamily MBS in the first quarter of 2015, primarily through its delegated underwriting and servicing program.

May 5, 2015 - IMFnews

Freddie’s CEO Layton: Earnings Won’t Rise Much From Here

In the first quarter, Freddie Mac's net interest income rose on a sequential basis by a mere 2 percent to $3.647 billion.

May 4, 2015 - IMFnews

Securitization of Seasoned Fannie/Freddie Mortgages on the Rise

Over the past few years, both the mega banks and regionals have been keeping some of their agency-eligible loans in portfolio...

May 1, 2015 - Inside FHA/VA Lending

Around the Industry

VA Clarifies HUD-1 Itemization Requirements. The Department of Veterans Affairs’ Home Loan Guaranty office has issued guidance clarifying HUD-1 documentation and itemization requirements. The HUD-1 is a statement lenders furnish to borrowers at closing showing the actual settlement costs, including amounts paid to and by the settlement agent. The guidance clarifies and establishes VA policy regarding the following: itemization of lender/seller credits in the 200 series of the HUD-1; itemization of line 801 on the HUD-1; clarification that credits reflected on line 803 of the HUD-1 cannot offset allowable fees’ and itemization of line 802 on the HUD-1. Ginnie Mae Announces Update to Securitization of USDA Section 538 Multifamily Loans. Ginnie Mae has enhanced the securitization of rural, multifamily housing loans with a Department of Agriculture guaranty to make affordable housing available to ...

May 1, 2015 - Inside FHA/VA Lending

GSE Unveils New Screen to Enable Settlement of RHS Mortgage Mods

Freddie Mac has announced a new “modification solution” screen in Workout Prospector (WP) to facilitate the settlement of modifications of mortgages guaranteed by the Department of Agriculture’s Rural Housing Service. Before entering the data through the modification solution screen, servicers must first have RHS’ written approval to modify the loan, according to latest servicing guidance from the government-sponsored enterprise. When submitting data to Freddie via Workout Prospector, the servicer must complete the data entry in accordance with the instructions in the WP user’s guide and the terms of the RHS modification-approval letter, the GSE said. After completing its review of the data, Freddie will change the WP system status to either “approved” or “declined” with respect to the modification of an RHS mortgage. However, the change does not constitute an approval or denial of the ...

May 1, 2015 - Inside FHA/VA Lending

Refis Help Boost Volume of Ginnie MBS Backed by VA Loans in 1Q15

VA home loan guaranty originations nearly caught up with FHA single-family volume in the first quarter of 2015, thanks to a strong pickup in veteran loan refinancings, an Inside FHA/VA Lending analysis of Ginnie Mae issuance data indicated. Refi loans accounted for 58.5 percent of VA loans securitized in the first quarter compared to just 34.4 percent of FHA loans in Ginnie mortgage-backed securities. Approximately $35.0 billion in VA loans were securitized in Ginnie Mae MBS in the first quarter, up 5.5 percent from the fourth quarter of 2014. On the other hand, $35.6 billion of FHA loans were securitized during the same period, down 1.8 percent from the prior quarter. Of the VA loans in Ginnie MBS, $14.5 billion were purchase mortgages, mostly delivered through retail and loan correspondents. Brokers accounted for only 8.5 percent of the purchase loans. Securitized VA purchase volume, however, was ... [2 charts]

May 1, 2015 - IMFnews

What We’re Hearing: PMAC Hits the Auction Block / Who’s Next? / A $1B Originator Goes to a Bank / Ocwen’s Back, Baby (Not Really) / What’s in a Mortgage Company’s Name? / MI Firms Post Earnings

One thing investors and analysts look for is revenue growth and Ocwen Financial did not deliver. But at least all of its lending licenses are intact...

May 1, 2015 - Inside MBS & ABS

HUD Appropriations Bill Cracks Down on Eminent Domain, Blocks Federal Involvement

The House Appropriations Subcommittee on Transportation, Housing and Urban Development this week approved a fiscal 2016 HUD appropriations bill, with language that would bar FHA, Ginnie Mae or HUD from deploying federal funds to foster the use of eminent domain to seize mortgages. “None of the funds made available in this act shall be used by [the three agencies] to insure, securitize or establish a federal guarantee of any mortgage or MBS that refinances or otherwise replaces a mortgage that has been subject to eminent domain condemnation or seizure, by a state, municipality or any other political subdivision of a state,” states Section 229 of the legislation. The Structured Finance Industry Group said...

May 1, 2015 - Inside MBS & ABS

Freddie Mac Reaches Multifamily Mortgage Milestone, Expects to Increase Volume in 2015

Freddie Mac announced this week that it has securitized more than $100 billion in multifamily mortgages through its K-Deal program, a milestone for the initiative that was launched in 2009. K-Deals were introduced during the financial crisis when the CMBS market collapsed. Freddie created the program to help revive the market, but it had to convince lenders that selling a loan via securitization was better than selling a loan that Freddie would hold in its portfolio. “In 2008, when we first started talking to investors about doing a CMBS-style securitization, some of them thought...

May 1, 2015 - IMFnews

Ocwen Paints a Vision for the Future: Higher Margins from Non-Agency. Oh, And It’s Staying in GSE and Ginnie Servicing

“I am not satisfied with only making $34 million in the quarter,” said Ocwen CEO Ron Faris. “We intend to do better.”

May 1, 2015 - Inside MBS & ABS

Securitization of Seasoned GSE Loans on the Rise, Especially Among Small- to Medium-Sized Lenders

Since the end of December, at least $7.4 billion in seasoned mortgages have been securitized through Fannie Mae and Freddie Mac, a trend that appears to be gaining steam, especially among small- to medium-sized lenders. In early April, Inside MBS & ABS reported that Bank of America contributed $5.4 billion of seasoned loans (three months or older) to Freddie Mac MBS, which helped make the bank Freddie’s largest seller in the first quarter. A follow-up inquiry to BofA yielded...

May 1, 2015 - Inside MBS & ABS

Income-Property Securitization Holds Steady in Early 2015 Thanks to Surge in Non-Agency CMBS Issuance

A total of $49.55 billion of commercial mortgages were securitized during the first quarter of 2015, virtually unchanged from the fourth quarter of last year, according to a new Inside MBS & ABS analysis. But the private CMBS market recorded a significant increase in new issuance. Non-agency CMBS production climbed 31.3 percent from the fourth quarter to hit $30.91 billion, the second-highest three-month output since the financial crisis shut down new issuance in the second quarter of 2008. Compared to the first quarter of 2014, new issuance was up 74.3 percent. The jump in private CMBS issuance helped offset...[Includes one data chart]

April 30, 2015 - Inside Mortgage Finance

GSE Low-Downpayment Programs Off To Slow Start; Lenders Have Mixed Views

The new government-sponsored enterprise low-downpayment programs have met a mixed reaction among lenders. While some said they expect to see an uptick in mortgage activity, others noted the product accounts for just a small percentage of their firms’ business and won’t have much of an impact on origination volume. Fannie Mae’s low-downpayment program kicked off in December 2014, and Freddie Mac implemented its program in March 2015. So far, the volume of low-downpayment purchase loans in GSE business is relatively small. Fannie securitized...

April 30, 2015 - Inside Mortgage Finance

New Optimism for Broker Channel as Market Share Inches Up to 13 Percent; Is 20 Percent Doable?

Mortgage brokers accounted for almost 13 percent of originations packaged into Fannie Mae and Freddie Mac securities in the first quarter of 2015, one of the highest readings in quite some time, according to loan-level data compiled by Inside Mortgage Finance. In the fourth quarter, the broker market share was 10.0 percent, a figure that includes originations of all loan types and not just ones packaged into securities. Over the past several quarters, there has been...

April 30, 2015 - Inside Mortgage Finance

Mortgage Origination Volume Picked Up Speed In Early 2015; Most Lenders Report Solid Gains

Mortgage lenders originated an estimated $370.0 billion of first-lien home loans during the first three months of 2015, lifting the market to its strongest quarterly volume since the third quarter of 2013, according to a new Inside Mortgage Finance analysis and ranking. The first-quarter total originations estimate does not include home-equity lending, which many lenders consider a separate business from traditional mortgage lending. In the past, Inside Mortgage Finance included home-equity in total originations, and those market estimates are not being revised. In 2014, about 5.7 percent of total originations ($71.0 billion) were home-equity loans. A number of survey participants have reported...[Includes two data charts]

April 30, 2015 - IMFnews

Short Takes: Lab Test Says GSEs Might Need $157B. What? / GOP Congressman Wants GSE Profits Used to Pay Down the Debt / CFPB Slams Title Firm Executives / CFPB Attorney Leaves for the Private Sector

But not to worry: the FHFA said the projections were mandated under the Dodd-Frank Act, cautioning that its estimate is just that, and not an expected outcome….

April 30, 2015 - IMFnews

MountainView Offers $979 Million of GSE Servicing Rights

With the second quarter in full swing, several advisory firms are actively offering packages, including Interactive Mortgage Advisors, Phoenix Capital and The Prestwick Group.

April 30, 2015 - IMFnews

GSE Low-Downpayment Programs Off to a (Really) Slow Start

Freddie Mac securitized just $12 million of purchase mortgages with loan-to-value ratios of 96 percent or 97 percent during the first quarter.

April 29, 2015 - IMFnews

Short Takes: Dead Silence on GSE Reform / EverBank Dumps More MSRs / Brian Libman’s Work History / The Ocwen Watch

Nationstar will take title to $6.7 billion of Fannie Mae, Freddie Mac and private investor product owned by EverBank...

April 29, 2015 - IMFnews

GSE Servicing Stagnant in 2015, but Nonbanks Gained

Among the standouts in nonbank MSR growth: Seneca Mortgage, Pingora and RoundPoint...

April 29, 2015 - IMFnews

Freddie Unveils Yet Another NPL Auction: $233 Million of Product Serviced by Ocwen

This is Freddie Mac’s fourth NPL auction of 2015. As for Fannie Mae...

April 28, 2015 - IMFnews

Maybe, the GSEs’ Role in Multifamily Should be Increased, Not Decreased

Another post-crisis trend is that the volume of Fannie’s multifamily financing had shrunk more than Freddie’s...

April 28, 2015 - IMFnews

Lender-Paid Mortgage Insurance Faces Scrutiny from the GSEs, FHFA

Quicken made news earlier in the year when it heavily promoted to loan brokers a 60-hour LPMI “sale” committing coverage for $100 million in originations.

April 28, 2015 - IMFnews

More Signs of a Comeback for Loan Brokers: Market Share at 12.9 Percent

The megabanks still report broker production in their loan sales figures, but most of the activity involves seasoned loans.

April 27, 2015 - IMFnews

Prestwick Selling Flow Servicing from the Mid-Atlantic

The bid deadline is May 12 and according to Prestwick, the seller wants to “start deliveries as soon as possible.”

April 24, 2015 - Inside The GSEs

Treasury Official Dishes on GSE Profits, Capital Cushion and More

Treasury Counselor Michael Stegman said despite the inability to recapitalize, Fannie Mae and Freddie Mac, as well as the housing market in general, are better off under the current conservatorship plan. He pointed to lower bowering costs as one of the advantages. The Preferred Stock Purchase Agreement, in which the Treasury gets the bulk of the GSEs profits, has been a source of frustration for some. However, Stegman, speaking at a Financial Services Roundtable event in Washington last week, said he wanted to “correct the record.” “The dividends that Treasury receives are not a repayment for the capital support and backstop that Treasury has provided,” he said. “The fact is that the PSPAs provide tremendous value to the GSEs. Market participants continue to have confidence...

April 24, 2015 - Inside The GSEs

GSEs' Multifamily Market Decline Affects the Low-Income Segment

The GSEs have provided multifamily financing for more than two decades, but their dwindling role has some worried that it has adverse effects on the underserved and low-income segment of the multifamily market. Although the Federal Housing Finance Agency said it is working to slow the decline, an April brief by the Urban Institute pointed out that with the increasing demand and costs of renting, the agency may need to do more in maintaining or increasing the GSE role in multifamily. In the past 25 years, the dollar volume of GSE multifamily financing has grown from $4.5 billion in 1990 to more than $57 billion at the end of 2014. But recent declines show that Fannie’s and Freddie’s

April 24, 2015 - Inside The GSEs

Fannie Targest First-Time Buyers With New Education Program

Fannie Mae recently launched a new program to help first-time homebuyers purchase a home while alleviating any possible confusion surrounding the buying process. As part of the HomePath Ready Buyer Education Program, qualified buyers could receive up to three percent closing cost assistance once they complete an online education course. The class is an important component of the program, according to Fannie. “Purchasing your first home can be an overwhelming process,” said Fannie’s Jay Ryan, vice president of REO Sales. “We developed the HomePath Ready Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the homebuying process.”

April 24, 2015 - Inside The GSEs

CU Integrated Into Other Quality Control Tools

In an ongoing attempt to offer lenders more clarity and reduce buybacks, Fannie Mae has taken its new Collateral Underwriter program to the next phase and integrated it with other loan-processing systems. After introducing Collateral Underwriter in January, Fannie announced on April 20 that it incorporated the tool with Desktop Underwriter, an automated underwriting system, and Early Check, the company’s pre-delivery loan eligibility and data evaluation tool. The GSE said this will provide a better view of risk on a loan across multiple applications, allowing lenders to address potential issues prior to loan delivery. CU, Fannie’s proprietary appraisal analysis application that gives lenders access to analytics, public records and other data when...

April 24, 2015 - Inside The GSEs

Freddie Mac Gears Latest NPL Auction to Smaller Investors

Freddie Mac, announced this week its first non-performing loan auction this week that primarily caters to smaller investors. The Extended Timeline Pool Offering of deeply delinquent NPLs gives investors who may need more time to secure funds for bidding a longer timeframe to do so. The loans for sale, all based in Miami-Dade County, FL, have an aggregate unpaid principal balance of $35 million. Having smaller pool sizes and a longer marketing timeframe differentiates the EXPO initiative from Freddie’s standard pool auctions. “This is intended to provide smaller investors extra time to secure funds to participate in Freddie Mac NPL auctions,” said the GSE. Qualified buyers have until June 2, 2015, to bid on the loans and the...

April 24, 2015 - Inside The GSEs

GSEs Tout Benefit of PMIER Rules, MIs Say They Will Be Ready

The Federal Housing Finance Agency announced new changes to private mortgage insurer eligibility rules on April 17 and the GSEs said the revisions will play a role in helping to reduce the risk to taxpayers by making sure the MIs are financially and operationally strong. During the financial crisis, some MIs couldn’t fully pay their claims, resulting in losses to the GSEs and taxpayers. The FHFA hopes the revised requirements will help lessen the chances of falling back into the same boat should there be another crisis. United Guaranty, the highest-rated GSE-approved mortgage insurer, said PMIER revisions are “a critical and necessary step that will allow the entire mortgage insurance industry to move forward by incorporating lessons learned during the financial crisis.”

April 24, 2015 - Inside The GSEs

FHFA’s Modest Changes Have Little Effect on GSE Loans

The news that Fannie Mae and Freddie Mac won’t be changing their base guaranty fees and will no longer charge a 25 basis point “adverse market” fee hit late last week when the Federal Housing Finance Agency released its decision on the issue that many have speculated about for weeks.The adverse market fee was eliminated for all loans but loan-level pricing adjustments were raised for certain mortgages. The changes will become effective for all loans purchased by Fannie and Freddie beginning Sept. 1, 2015. The base guaranty fee announcement came as no surprise as most expected there wouldn’t be a change. “The FHFA finds no compelling economic reason to change the general level of fees,” the agency said.

April 24, 2015 - IMFnews

What We’re Hearing: Ocwen Decides to Keep its Ginnie MSRs / What Will a Borrower See When It Googles Ocwen’s Name? / Quicken Gets Hit in the Mouth With a Fastball / More Red Ink for Stewart Title

Grid Financial consultant Paul Hindman is a true believer in brokers as is Mat Ishbia of United Wholesale Mortgage.

April 24, 2015 - Inside MBS & ABS

Changes to GSE Guaranty Fees and LLPAs Yield A Big Fat Zero for the Jumbo MBS Market

Firms hoping that new guaranty fee and loan-level price adjustments promulgated by the Federal Housing Finance Agency might boost the jumbo MBS market were sorely disappointed when the final details were released by the agency late last week. One executive who works for a real estate investment trust that issues jumbos said it’s clear to him that Fannie Mae and Freddie Mac are continuing to “misprice” their g-fees. He would love...

April 23, 2015 - IMFnews

Treasury Responds to Sen. Grassley on PSPAs, Transparency of Conservatorship Decisions

Most of Sen. Grassley's inquiry focused on transparency and whether the president invoked executive privilege over some of the documents pertaining to the third amendment to the PSPAs...

April 23, 2015 - Inside Mortgage Finance

A Growing Concern for Fannie, Freddie and The FHFA: Lender-Paid Mortgage Insurance

With private mortgage insurance eligibility requirements now a done deal, the MI industry may have a new headache on its hands: concerns from Fannie Mae and Freddie Mac – and their regulator – about the discounting of lender-paid MI policies. Industry officials familiar with the LPMI issue have been telling Inside Mortgage Finance for weeks that the government-sponsored enterprises are taking a close look at the product. Although the Federal Housing Finance Agency declined to discuss LPMI, a spokesman for Freddie Mac offered...

April 23, 2015 - Inside Mortgage Finance

Nonbanks Continue Building Stake in Agency MBS Servicing Market, Top Banks Don’t Fight Erosion

The agency mortgage servicing market grew modestly during the first quarter of 2015, thanks to Ginnie Mae and Freddie Mac, according to a new Inside Mortgage Finance analysis of agency mortgage-backed securities disclosures. Lenders serviced a total of $5.287 trillion of single-family mortgages pooled in outstanding agency MBS as of the end of March, up 0.1 percent from the fourth quarter of 2014. The figures do not include unsecuritized loans guaranteed by the two government-sponsored enterprises or, in the case of Ginnie, FHA-insured reverse mortgages. And the numbers don’t perfectly synch up with aggregated reports by the agencies of their guaranteed mortgage debt outstanding. All three of the top agency MBS servicers had...[Includes two data charts]

April 23, 2015 - Inside Mortgage Finance

Private MIs Say They’re (Mostly) Ready for New GSE Eligibility Rules, Or They Will Be

The Federal Housing Finance Agency late last week announced a few changes to new private mortgage insurer eligibility rules that were first proposed in July 2014, and the private MI industry appears mostly ready for them. “The new PMIERs are really designed to promote the counterparty strength of private mortgage insurers. We feel like this will strengthen the industry,” said Gina Haly, Freddie Mac’s vice president in the mortgage insurance and risk transfer counterparty credit division. During the financial crisis, some MIs couldn’t fully pay...

April 23, 2015 - Inside Mortgage Finance

Modest Changes to GSE MBS Guaranty Pricing Likely To Have Little Impact on FHA, Jumbo Originations

The Federal Housing Finance Agency late last week directed Fannie Mae and Freddie Mac to stop charging the 25 basis point “adverse market” fee assessed on all loans since the financial crises, but most lower-risk loans won’t get any reduction in loan-level pricing adjustments. As expected, the FHFA did not make any changes to the “base” guaranty fees charged by the two government-sponsored enterprises. Current fees, on average, are at an “appropriate” level. “We are going to monitor this on an ongoing or quarterly basis and we’ll adjust based on market conditions,” said Sandra Thompson, FHFA’s deputy director. The regulator instructed...

April 23, 2015 - IMFnews

Agency MSRs: Nonbanks Continue to Steal Market Share From the Megabanks

Most of the slack is being taken up by nonbanks, which serviced $1.571 trillion of agency MBS at March 31.

April 22, 2015 - IMFnews

Short Takes: A HUD Settlement for Green Tree? / After Losing LeBron, Quicken Owner Fears Little / More Regs for AMCs / Lenders You May Not Know: First Cal / Freddie Gets New Chief Risk Officer

It's always possible that Green Tree could turn around and sue HUD before HUD sues them, which is what Quicken Loans did.

April 22, 2015 - IMFnews

Interactive Mortgage Advisors Unveils Two New MSR Deals

On IMA’s other deal, the brokerage firm is offering $100 million per month of Fannie Mae/Freddie Mac “flow” product.

April 22, 2015 - IMFnews

Freddie Mac Gears New NPL Auction to Smaller Investors

Qualified buyers have until June 2 to bid on the Miami-based loans.

April 21, 2015 - IMFnews

Bank Sells $2 Billion Bond to a GSE in Deal Assisted by MIAC

The sale actually closed at yearend, although it was revealed in a press statement dated April 21.

April 21, 2015 - IMFnews

Are ‘Fast Servicers’ Impacting the TBA market? Nonbanks a Factor?

The Federal Reserve is seen as taking the brunt of nonbank servicer-induced prepayment risk on agency MBS.

April 20, 2015 - IMFnews

Short Takes: The Quicken Data Dump to DOJ / Dan Gilbert’s Growing Portfolio of Detroit Properties / Ocwen Gets Extension / ASPS Grants Options to Executives / BofA and IBM?

The lender says government investigators have conducted lengthy depositions with numerous Quicken leaders…

April 20, 2015 - IMFnews

PMIER Fallout: Genworth May Need $700MM of Additional Capital but Expects to be Compliant

In trading Monday, Genworth’s stock price was down slightly trading at $7.96. Its 52-week low is $6.75, its high $18.74.

April 17, 2015 - IMFnews

What We’re Hearing: Concern Over LPMI Discounting? / RoundPoint Still Hunting for a Suitor / A Book out on Seterus? / When Fannie Almost Bought Litton / loanDepot Claims It’s Among the Fastest

If Fannie Mae bought a servicing platform Congress, of course, would blow a gasket...

April 16, 2015 - IMFnews

GSE Refi Loans with PMI Spike 37 Percent in First Quarter 2015

The steadily declining average loan-to-value ratio on PMI-covered refinances reflects dwindling production in the HARP program.

April 15, 2015 - IMFnews

Treasury Point Man on GSE Reform Defends PSPAs

The remaining undrawn taxpayer commitment to the GSEs is $258.1 billion dollars, Stegman noted.


The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

It's a very big deal, but our company will limit OT pay or pay very little.


It’s sort of a big deal, but we have no plans to pay overtime pay at all.


We have no problem paying our LOs OT.


We’re still studying the case and have not yet decided what to do.


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