Agency MBS

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

October 26, 2016 - IMFnews

Short Takes: What a Trump White House Means for the GSEs / PHH Will Release 3Q16 Results on Election Day / Wedbush Initiates Coverage of PHH / Freedom From Reps & Warrants? / The First Hispanic-American MBS Chair / New Hires for Silver Hill

Wedbush's Henry Coffey notes that PHH is “facing a number of challenges,” including a struggle to restore profitability…

October 25, 2016 - IMFnews

Short Takes: PHH Losing Employees? / Lenders Left Out in the Cold on Front-End Risk Sharing / RESPA Attorneys, Start Your Engines / Will the CFPB Review It? / A New TPO Hire for Stonegate Mortgage

Some loan brokers we spoke with were skeptical about the RE/MAX concept...

October 25, 2016 - IMFnews

Incenter Offers Flow and Bulk Deals That Could Top $3 Billion

With rates creeping up, more MSR packages should hit the auction block…

October 25, 2016 - IMFnews

MBS Trading Volume Hit Yearly High in September. Improved Liquidity?

“Agency MBS prepayment speeds slowed in September, but they still hover near the multi-year highs reached last month,” according to a report from Keefe, Bruyette & Woods.

October 24, 2016 - IMFnews

Short Takes: FHFA Chief Mel Watt: Embrace Change, Folks / Halfway to Five Years / MBA’s Stevens Makes Reference to FHA Lawsuits / For Wells Fargo, the Fallout Continues

For Mel Watt, he's at the halfway point...

October 24, 2016 - IMFnews

Freddie Tweaks ‘Loan Advisor’ Product, Offers No-Cost Automated Appraisals

Freddie said the revised suite is “designed to take costs out of the loan origination process.”

October 24, 2016 - IMFnews

CBO Says Even if GSE Plaintiffs Prevail, Treasury Would Still Get Most of the Earnings of Fannie and Freddie

CBO’s comments were contained in a report that takes a “what if” approach to allowing Fannie and Freddie to retain as much as $5 billion of capital a year for 10 years...

October 24, 2016 - IMFnews

Monday Morning Mortgage Shocker: Genworth Being Sold to Chinese Company

Since Genworth is a counter-party to Fannie Mae and Freddie Mac, the GSEs must approve the change of control as well.

October 21, 2016 - Inside FHA/VA Lending

SCRA ‘Bug’ Spit Out False Reports On Soldiers’ Active-Duty Status

A glitch in the federal government’s Servicemembers Civil Relief Act website that had been churning out false verifications of soldiers’ active-duty status has been fixed, the Defense Manpower Data Center of the Department of Defense has announced. The bug responsible for the false negative results was removed after rendering the website inoperable for several days. The DMDC is urging active servicemembers to re-run their SCRA certificate requests if they have reason to doubt any negative results returned by the website. The DMDC shut down the website temporarily on Oct. 4 making it impossible for mortgage lenders to verify their or their vendor-partners’ compliance with the SCRA. The statute provides certain protections from civil actions against servicemembers who are called to active duty. It restricts or limits actions against active-duty military personnel in areas such as mortgages, rental and lease agreements, credit-card interest rates, tax liability, lawsuits and other debt obligations. The SCRA certificate provides information only for the purpose of verifying an individual’s active-duty status for a given time period to ...

October 21, 2016 - Inside FHA/VA Lending

Nonbanks Took Over GNMA Servicing Market in 3Q16

Nonbanks crossed a threshold in the third quarter of 2016, posting a hefty 6.3 percent increase in their combined Ginnie Mae servicing portfolio, according to a new Inside FHA/VA Lending analysis. Nonbanks serviced $826.6 billion of Ginnie single-family mortgage-backed securities as of the end of September. That represented 51.3 percent of the total Ginnie market. The nonbank servicing total includes a small amount of Ginnie servicing held by state housing finance agencies, roughly 1.0 percent of the entire market. But it doesn’t include the significant amount of Ginnie servicing that nonbanks do as subservicers for both depository and nonbank clients. Interestingly, the biggest gain for nonbanks in percentage terms came in servicing VA loans, which rose 8.1 percent from the second quarter to $252.1 billion, or 51.0 percent of the market. The VA sector is one business from ... [4 charts ]

October 21, 2016 - Inside Nonconforming Markets

Jumbo Share Nudged Slightly Higher in 2015

Jumbo mortgages accounted for 18.3 percent of total first-lien originations in 2015, according to a new Inside Mortgage Finance analysis of Home Mortgage Disclosure Act data recently released by federal regulators. That was virtually unchanged from the 18.1 percent share that jumbo loans held in the 2014 HMDA data. The analyses match conventional loan amounts and county information about the secured property to Fannie Mae/Freddie Mac conforming loan limits, including adjustments for high-cost markets, in effect at the time. Purchase mortgages accounted...[Includes two data tables]

October 21, 2016 - Inside Nonconforming Markets

Retail Channel Is Dominant Source Of Jumbo Mortgages in Early 2016

The jumbo market is dominated by retail lenders to a greater extent than either conventional-conforming production or government-insured lending, according to a new analysis by Inside Nonconforming Markets. A group of 19 top jumbo lenders reported $92.45 billion in jumbo originations through their retail operations during the first half of 2016. That represented 76.8 percent of the $120.37 billion in total jumbo production for the group. The 19 lenders accounted...[Includes one data table]

October 21, 2016 - Inside MBS & ABS

Industry Groups Say GSE Credit-Risk Sharing Needs to Develop Front-End Transactions, Improve Transparency

Trade groups representing a broad spectrum of mortgage and securitization businesses generally support an effort by Fannie Mae and Freddie Mac to develop more credit-risk transfer options, but some cautioned that the government-sponsored enterprises should maintain a level playing field. In response to a Federal Housing Finance Agency request for comments on the CRT program, the Mortgage Bankers Association and U.S. Mortgage Insurers repeated their calls for programs to allow loan sellers to buy deeper private MI in exchange for reduced GSE guaranty fees. To date, the vast majority of Fannie and Freddie CRT deals have been...

October 21, 2016 - Inside MBS & ABS

Freddie Mac and Dealers Begin Testing Portal For Exchanging Legacy PCs for Single Securities

Freddie Mac has begun pilot testing its new Dealer Direct system for swapping legacy participation certificates for new single securities with a select group of dealers, the government-sponsored enterprise said in an update issued this week. In transitioning to the single security, Freddie will give all investors in its existing MBS that have a 45-day payment cycle the option to exchange them for the new 55-day securities. That process will be transacted through the Dealer Direct electronic platform. Holders of legacy MBS will work...

October 21, 2016 - Inside MBS & ABS

GNMA Allays Investor Fears with a Revised Policy on Pooling Eligibility for Streamlined Refinance Loans

Ginnie Mae has announced a policy change to ease investor concern over recent streamlined refinancing trends involving a small number of mortgage loans in Ginnie pools. The policy change addresses the issue of premature streamline refinancing of certain loans in Ginnie Mae I single-issuer pools that threatens to deflate investors’ expectation of a full 100-percent return on their MBS investments. “Investor participation … depends...

October 20, 2016 - Inside Mortgage Finance

Ruling that CFPB Sole-Director Structure Is Unconstitutional Could Be Applied to FHFA

A federal court ruling that the Consumer Financial Protection Bureau’s structure is unconstitutional raises questions that similarly-structured agencies such as the Federal Housing Finance Agency could also be challenged. A DC Circuit Court judge in the PHH Corp. v. Consumer Financial Protection Bureau case ruled that the CFPB’s single-director structure was not constitutional because it lacked a multi-member board of directors and its sole director cannot be fired without cause. In court, lawyers from the CFPB called...

October 20, 2016 - Inside Mortgage Finance

Nonbanks Keep Expanding in Agency MSR Market, Accounted for Over Half of Ginnie Sector in 3Q16

Nonbank mortgage servicers expanded their footprint in agency mortgage servicing rights during the third quarter of 2016, according to a new Inside Mortgage Finance analysis. Overall, there were $6.062 trillion of single-family mortgages outstanding tied to Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities at the end of September. (The table below excludes two significant categories: loans subserviced on behalf of the agencies and some seasoned loans for which no servicer is disclosed. This mostly affects the Fannie data.) The September figure was...[Includes three data tables]

October 20, 2016 - IMFnews

Short Takes: Planning Season for 2017 Has Begun / Applications Inch Up / The Ginnie Mae Acknowledgment Agreement Version 2.0? / GSEs Score a Victory in Chicago

If rates rise enough, will refis fall by 50 percent?

October 20, 2016 - IMFnews

FHFA Issues Guidelines for Internal Audits at Fannie, Freddie and the FHLBanks

The FHFA said internal audits at the housing GSEs should cover the entire audit universe over a four-year period…

October 20, 2016 - IMFnews

Private Mortgage Insurers Winning Purchase Market Share

The private MI share of agency purchase loans rose from 26.9 percent in the second quarter to 27.8 percent in the third.

October 19, 2016 - IMFnews

CRT Comment Letters Focus on Front-End vs. Back-End Arrangements

Fannie Mae’s Connecticut Avenue Securities program and Freddie Mac’s Structured Agency Credit Risk program have accounted for the bulk of GSE activity since the CRT initiative was launched three years ago.

October 19, 2016 - IMFnews

Market Tilt Toward Purchase-Mortgage Lending Boosts Correspondent Share

Meanwhile, loan brokers tended to originate larger loans, averaging $264,646 for purchase mortgages…

October 18, 2016 - IMFnews

Short Takes: The FHA Premium Cut Will be 25 BPs? / About Those New Walter Hires / Late Foreclosures Drive Up Costs at HUD / Some Glum Takes on Housing From Fannie, Freddie and NAR

Two thoughts: Force colleges to forgive a large chunk of what’s owed to them and/or order real estate agents (and sellers) to drastically reduce the asking price on homes. Which would you choose?

October 18, 2016 - IMFnews

GSE Credit-Risk Transfers Kept Chugging Along in 3Q16

Fannie Mae had the bigger quarter in CRT activity, more than doubling its second-quarter total with a record $2.52 billion of issuance…

October 17, 2016 - IMFnews

Short Takes: Schneider is Out at Walter, Ditech / A Flattening of the Management Structure / Just a 10 Percent Increase in Originations? / Countrywide Once Wanted to be the Third GSE?

Three GSEs: Fannie Mae, Freddie Mac and Countrywide?

October 17, 2016 - IMFnews

Phoenix Selling ‘Flow’ Servicing that Could Top $2.1 Billion Per Year

Based on the seller’s past performance, California, Texas and Florida will account for 30 percent of the receivables. Bids are due Oct. 18.

October 17, 2016 - IMFnews

Could the Judge’s Ruling in the PHH-CFPB Case Ultimately Affect the FHFA?

The court’s reasoning in the case casts doubt on the validity of the FHFA’s structure, according to a report from Compass Point Research & Trading.

October 14, 2016 - Inside Mortgage Trends

Private MIs Winning Purchase-Market Share

Private mortgage insurers are quietly gaining ground on their government-insured rivals in the critical home-purchase market, according to a new Inside Mortgage Trends analysis of agency mortgage-backed securities data. Fannie Mae and Freddie Mac securitized $61.47 billion of purchase mortgages with private MI coverage during the third quarter, a gain of 33.4 percent from the previous period. At the same time, Ginnie Mae securitized $79.91 billion of FHA and VA purchase mortgages, up 19.3 percent from the second quarter. The private MI share of agency purchase loans rose...[Includes two data tables]

October 14, 2016 - Inside The GSEs

Industry Groups Express Varying Views in CRT RFI Comments

The comment period on credit risk transfers ended Oct. 13 and letters from industry groups have been pouring in this week, with many primarily focusing on the issue of front-end versus back-end credit-risk transfers. While some advocate for more front-end risk- sharing deals, instead of the back-end ones that account for more than 80 percent of CRTs to date, others warned that “winners and losers” should not be picked. Back in June, the FHFA asked for industry feedback on various aspects of its CRT program. It also extended the deadline from August to October because industry stakeholders wanted more time to evaluate the questions raised in the request for input.

October 14, 2016 - Inside Mortgage Trends

What Happens to Default Servicing, Post-Recovery?

Given that the mortgage servicing industry seems far removed from where it was when the housing crisis peaked, what will become of default servicing in the years to come? For one thing, a certain amount of delinquency will always exist in the housing market, according to a new white paper from the Five Star Institute, which drew together research, insight and commentary from a host of industry resources and experts. “For all the loans that are out there, there will always be...

October 14, 2016 - Inside Mortgage Trends

Market Tilt Toward Purchase-Mortgage Lending Boosts Correspondent Share

Fannie Mae and Freddie Mac saw a robust 29.7 percent jump in single-family mortgage business during the third quarter, with most of the gain coming from the purchase-mortgage side of the business. And more purchase-mortgage business usually means a bigger share for correspondent lenders. Correspondent originations accounted...[Includes two data tables]

October 14, 2016 - Inside MBS & ABS

GSE Credit-Risk Transfers Keep Chugging Along in 3Q16, Bank of America Merrill Lynch Tops in Underwriting

Fannie Mae and Freddie Mac sold $3.78 billion of credit-risk transfer bonds during the third quarter, a 7.8 percent increase from the previous period, according to a new Inside MBS & ABS analysis of CRT disclosures made by the two government-sponsored enterprises. That brought year-to-date issue in Fannie’s Connecticut Avenue Securities program and Freddie’s Structured Agency Credit Risk program to $10.73 billion, up 13.3 percent from the first nine months of last year. Fannie had...[Includes one data table]

October 14, 2016 - Inside MBS & ABS

Non-Agency MBS Issuance Rebounded in 3Q16, But Remained Well Off the Pace Set in 2015

A total of $12.41 billion of non-agency MBS were issued during the third quarter of 2016, according to a new Inside MBS & ABS analysis, but the market continued to rely heavily on a mix of recycled collateral and niche transactions. Overall issuance was up 78.3 percent from the second quarter, including big gains in prime MBS production and re-securitization deals. That still left year-to-date issuance off 43.9 percent from the first nine months of 2015. The huge jump in prime MBS production is...[Includes three data tables]

October 14, 2016 - IMFnews

Big Banks Claim Larger Share of GSE Business During 3Q16

Reversing at least temporarily a long-running trend in the mortgage market, the four biggest banks in the U.S. expanded their presence in the GSE single-family market in the third quarter of 2016...

October 13, 2016 - Inside Mortgage Finance

GSE Nonperforming Loan Activity Update, Fannie Mae Surpasses 2015 Offerings

Fannie Mae has significantly ramped up its nonperforming loan sales in 2016, while Freddie Mac is running slightly behind the pace it set in 2015. Fannie offered $4.69 billion of NPLs through the first nine months of this year, compared to $2.78 billion for all of 2015. The government-sponsored enterprise announced five more pools totaling $1.39 billion up for sale this week, moving the year-to-date total to $6.08 billion. The latest sale is...

October 13, 2016 - Inside Mortgage Finance

Flow of Private MI Loans Into GSE MBS Kept Pace With Overall Increase in Fannie/Freddie Business in 3Q16

Trends in the agency mortgage-backed securities market suggest that private mortgage insurers may have gained some market share from government MI programs during the third quarter of 2016, according to a new Inside Mortgage Finance analysis. Fannie Mae and Freddie Mac securitized a total of $75.89 billion of insured single-family mortgages during the third quarter, an increase of 29.5 percent from the previous period. That was a tad below the 29.7 percent increase in overall MBS production by the two government-sponsored enterprises, but it kept the private MI share at 26.8 percent for the third quarter. Meanwhile, the booming Ginnie Mae market showed...[Includes two data tables]

October 13, 2016 - IMFnews

MBA Pushes for ‘Front-End’ Risk Transfers on GSE Loan Sales

“It is critically important for the GSEs to develop and implement additional CRT structures that are accessible to lenders of all sizes and business models in order to avoid reconcentration of the origination and servicing market,” writes MBA President Dave Stevens.

October 13, 2016 - IMFnews

Flow of Private MI Into GSE MBS Kept Pace with Overall Increase in 3Q16 Fannie/Freddie Business

Looks like private MI firms gained market share in the third quarter…

October 12, 2016 - IMFnews

At the End of 3Q16, Just Two Firms Were Still Issuing ‘Prime’ Non-Agency MBS

Five deals were issued during the quarter, led by a $2.65 billion MBS from Chase that combined mortgages eligible for sale to the government-sponsored enterprises and jumbo loans.

October 10, 2016 - IMFnews

Short Takes: Wells Fargo, Still the Number One Ginnie Issuer … for Now / Who Will Replace Ibrahim at Radian? / Clayton in the News / The GSE Net Worth Sweep: What did President Obama Know?

Who will succeed S.A. Ibrahim at Radian? We've heard two names...

October 10, 2016 - IMFnews

Bank Selling ‘Flow’ Servicing That Could Reach $600 Million a Year

Based on past production trends of the seller, 52 percent of the loans originated will come through the correspondent channel.

October 7, 2016 - Inside FHA/VA Lending

IG Audit Finds GNMA Left Hundreds Of Uninsured Loans in MBS Pools

Requiring an undercapitalized issuer to repurchase uninsured performing mortgages out of a mortgage-backed securities pool could increase risk to the federal government, warned Ginnie Mae. Responding to an adverse audit report from the Department of Housing and Urban Development’s Office of the Inspector General, Ginnie said that while it generally accepts the IG’s recommendations, forcing an undercapitalized issuer to buy out performing loans and either hold them in portfolio or sell them at a substantial loss would put the government at greater risk. “This is something we need to be alert to in certain cases,” the agency said. According to the report, Ginnie improperly allowed more than $49 million of single-family mortgages with terminated insurance to remain in its MBS pools for more than one year without obtaining FHA coverage. The IG warned Ginnie could be on the ...

October 7, 2016 - Inside FHA/VA Lending

Ginnie Mae Crushed Single Family MBS Issuance Records in 3Q16

Ginnie Mae rode a surging purchase-mortgage market and heavy refinance activity to new production records during the third quarter of 2016. The agency issued a whopping $145.14 billion of single-family mortgage-backed securities during the third quarter, according to an Inside FHA/VA Lending analysis of MBS disclosures. That figure is based on pool-level disclosures that reveal exact principal balance amounts and it includes securities backed by FHA home-equity conversion mortgages. The data in the table below are based on truncated loan-level disclosures and do not include HECM activity. New Ginnie MBS issuance in the third quarter was up 15.7 percent from the previous quarter. Ginnie MBS production set three consecutive monthly records during the third quarter, culminating in a huge $52.46 billion month in September. Purchase-mortgage activity was the key driver, but the ... [ 4 charts ]

October 7, 2016 - Inside Nonconforming Markets

Sales of Higher-Priced Mortgages Declined in 2015

Some $41.77 billion in higher-priced mortgages were sold in 2015, down 19.9 percent from 2014, according to an Inside Nonconforming Markets analysis of recently released data under the Home Mortgage Disclosure Act. Their share of total loan sales also decreased in 2015 to 3.3 percent. Higher-priced mortgages are sometimes seen as a proxy for nonprime mortgages. First-lien higher-priced mortgages are defined as loans with an ... [Includes one data chart]

October 7, 2016 - IMFnews

What We’re Hearing: The Best Place for an LO? Answer: At a Nonbank / How Wells Fargo Grades its LOs / Remember FM Watch? / Jump? How High? / Pingora Continues to Buy MSRs / The Revolving Door at Clayton / Wornow and Hughes Land

Want to make more money? Go work for a nonbank. Want better job security? Work for a depository...

October 7, 2016 - Inside MBS & ABS

Milken Institute Authors Suggest Housing Finance Reform via Agency Charter Amendments for GSEs, Ginnie and the FHFA

The Milken Institute suggests simply amending the charters of Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Housing Finance Agency for a smooth transition toward a new secondary mortgage market. Those changes include turning the government-sponsored enterprises into mutuals owned and operated by their seller-servicers and making Ginnie Mae a stand-alone government corporation. Amending the charters could accomplish a wide range of objectives that have eluded legislators and policymakers since the conservatorships, the authors said. Michael Bright, director in the Milken Institute’s Center for Financial Markets, and Ed DeMarco, senior fellow at the institute and former FHFA acting director, said...

October 7, 2016 - Inside MBS & ABS

MBS Investing REIT Annaly Continues Review of Pingora Loan Servicing; Observers Say the MSR Unit Is a Keeper

Annaly Capital Management, the nation’s largest real estate investment trust specializing in the residential MBS market, continues to take a close look at one of its more recent acquisitions, Pingora Loan Servicing, with no word yet on its plans for the unit. Annaly took control of Pingora this past summer when it officially closed on the purchase of Hatteras Financial, the parent of the servicer. Before the purchase, Annaly had...

October 7, 2016 - Inside MBS & ABS

When Crafting Deal Agent for Non-Agency MBS, Investors Looked to GSEs’ Oversight, Enforcement and Performance

Non-agency MBS investors looked to the practices of the government-sponsored enterprises when establishing the standards for a deal agent, according to Alessandro Pagani, a portfolio manager and head of securitized assets at Loomis Sayles. “The GSEs were very effective in enforcing their rights as owners of the collateral; they had access to information and real enforcement power to put back loans that needed to be put back and direct servicers,” he said at the recent ABS East conference produced by Information Management Network. The Deal Agent Committee released...

October 7, 2016 - Inside MBS & ABS

Agency MBS Production Soared in 3Q16, Paced By Three Record-Setting Months for Ginnie Mae

Ginnie Mae set new monthly and quarterly production records during the third quarter of 2016, leading the agency MBS market to a huge 24.6 percent increase in new issuance, according to a new market analysis and ranking by Inside MBS & ABS. The three agencies produced $428.36 billion in new single-family MBS during the third quarter. Fannie Mae and Freddie Mac actually had bigger increases from the second quarter, but Ginnie was the star of the show. Ginnie recorded...[Includes two data tables]

October 7, 2016 - Inside MBS & ABS

Securitization Market Revved Up in 3Q16 and Reached Three-Year High in Total New Issuance

Issuance of new residential MBS and non-mortgage ABS rose sharply in the third quarter of 2016, according to a new Inside MBS & ABS analysis. The market produced a total of $494.11 billion in new MBS and ABS during the third quarter, a 25.0 percent increase from the second quarter. That brought year-to-date production to $1.208 trillion, slightly ahead of the pace set during the same period in 2015. It was...[Includes one data table]


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.


2 to 3 years. GSE reform is complicated.


Sadly it won’t happen in a Clinton or Trump first term.


Not in my lifetime.


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