Agency MBS

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

March 27, 2015 - Inside The GSEs

More NPL Sales for Freddie Mac

Freddie Mac is offering another bulk sale of delinquent loans but is not releasing the details just yet. Thomas Fitzgerald, company spokesman, confirmed on Monday that there are nonperforming loans for sale, making this Freddie’s second offering this year so far. “We are sharing details about the sale solely with prospective bidders,” he said, adding that Freddie anticipates on providing more specifics on the results after the auction. Fitzgerald did confirm that the loans in the transaction are “deeply delinquent,” at least two years old, and said “the sales process is a round-one competitive auction.” Bloomberg reported that the three pools amount to $1 billion in nonperforming loans...

March 27, 2015 - Inside The GSEs

IG Report Reviews FHFA’s Management of Fannie, Freddie

The Federal Finance Housing Agency needs to be vigilant in its continued oversight in its management of Fannie Mae and Freddie Mac, according a report from the Office of the Inspector General. Because the FHFA’s actions aren’t subject to judicial review, the OIG said its oversight of the FHFA conservatorship actions and processes “is critical to safeguard taxpayer dollars and ensure that the FHFA is fulfilling its statutory duties.” In the new white paper, the OIG said Congress vested the FHFA with “sweeping powers” as conservator to potentially control every decision the enterprises make. In 2014 alone, the FHFA flexed its muscle to take more than 750 conservatorship “actions” against Fannie and Freddie.

March 27, 2015 - Inside The GSEs

FHFA-IG White Paper Questions Fannie, Freddie Profits

A recent white paper by the Federal Housing Finance Agency Office of the Inspector General highlights the precariousness of GSE profitability. The IG questions whether Fannie Mae and Freddie Mac has the muscle to withstand adverse market conditions or other changes and uncertainties that could lead to additional losses.“The enterprises’ conditions have stabilized and market conditions have improved since 2008. They returned to profitability in 2012; however, the level of earnings they experienced in 2013 and 2014 is not sustainable over the long term,” the paper said. Record-breaking profits of a combined $132.6 billion were reported in 2013 for Fannie Mae and Freddie Mac. That number dropped significantly the following year to $21.9 billion.

March 27, 2015 - Inside The GSEs

Study Says Current Credit Model Excludes Potential Homebuyers

Creditworthy buyers are being constrained by dated scoring systems, according to a study released this week by VantageScore Solutions, which says there are benefits to Fannie Mae and Freddie Mac, as well as consumers, if a new model is adopted. The enterprises could increase their revenue while expanding access to mortgages to a more diverse group of consumers. The credit reporting company has been working to get Fannie and Freddie to embrace a new credit reporting system for years now. Its new report comes on the heels of the Federal Housing Finance Agency comments in its 2015 scorecard directing the GSEs to look into potential alternative forms of credit scoring.

March 27, 2015 - Inside The GSEs

Bill Introduced to Stop Congress From Raiding Fannie and Freddie

Industry groups have rallied around a bill introduced to stop what a bipartisan group of senators call a “back door tax,” by raising guaranty fees. Sens. Mike Crapo, R-ID, and Mark Warner, D-VA, introduced the bill in Congress last week. The bill, S. 752, stipulates that a congressionally mandated increase of guarantey fees imposed on Fannie Mae and Freddie Mac business can only be used for deficit reduction. The goal is to prevent Congress from using Fannie and Freddie to fund unrelated spending. They also want to establish a scorekeeping rule to ensure that any increases in guaranty fees of the GSEs won’t be used to...

March 27, 2015 - Inside The GSEs

FHFA Weighing HARP Extension, Won’t Rule Out Program Changes

It’s still unclear whether the Home Affordable Refinance Program, set to expire in December, will be extended and if eligibility requirements will be altered. During remarks at a JPMorgan conference in March, Bob Ryan, special advisor to Mel Watt, Federal Housing Finance Agency director, said that a decision needs to be made in the coming months. HARP, introduced in 2009 as a way for borrowers with little or no home equity to refinance mortgages into affordable payments, was originally set to expire at the end of 2013 but was extended through this year. Close to 3.3 million loans were refinanced through HARP since it began in 2009, and as of September 2014 there were...

March 27, 2015 - Inside The GSEs

Senators Tell FHFA CSP Needs Fine Tuning, Involvement of Non-GSEs

Members of the Senate Committee on Banking, Housing and Urban Development cited a lack of flexibility to accommodate multiple types of users, a biased board of directors, and an unacceptable timeframe as their primary concerns about the common securitization platform. The bipartisan group of eight senators, led by Republican Chairman Bob Corker (TN), articulated their concerns surrounding the development and usage of the planned CSP in a letter addressed to Federal Housing Finance Agency Director Mel Watt. Primarily, they want to ensure that the CSP is designed to be just as usable and beneficial to the private sector as it is for Fannie Mae and Freddie Mac in order to avoid “the duopolistic tendencies of the past.”

March 27, 2015 - Inside The GSEs

FHFA Remains Quiet on When it Will Approve Ocwen’s Sale of GSE MSR

Over the past month, Ocwen Financial has unveiled agreements to sell roughly $89.4 billion of Fannie Mae and Freddie Mac servicing rights – transactions that require approval from not only the GSEs, but their regulator/conservator, the Federal Housing Finance Agency. To date, the FHFA has made no public statements regarding Ocwen’s sales and isn’t likely to until it actually makes an approval or denial.Based on the transactions that have been announced since Feb. 23, there is little to indicate that the deals won’t pass regulatory muster. The receivables being off-loaded by the troubled servicer are considered to be pristine in nature and with little in the way of delinquencies.

March 27, 2015 - Inside The GSEs

House Democrats Reintroduce Mortgage Finance Reform Bill

A bill to replace the Federal Housing Finance Agency with a beefed up Ginnie Mae and set Fannie Mae and Freddie Mac on a path to liquidation has been reintroduced in the House. The Partnership to Strengthen Homeownership Act was first introduced in July 2014 to wind down Fannie and Freddie over a five-year timeframe. Reps. John Delaney, D-MD, John Carney, D-DE, and Jim Himes, D-CT, are the lead sponsors of the measure. They said the bill takes the best ideas from both parties to create a housing finance system that combines the strengths of the private and public sectors.The congressmen agreed that things need to be done differently.

March 27, 2015 - Inside The GSEs

GSE Buyback Activity Focused On Newer, Performing Loans

Fannie Mae and Freddie Mac continue to turn their focus in loan-quality reviews to more freshly originated mortgages, the vast majority of which are current. A new Inside The GSEs analysis of disclosures made by the GSEs to the Securities and Exchange Commission shows that most of the lender repurchases made in 2014 continued to be associated with older, pre-crisis loans. But the biggest volume of pending and unresolved buyback demands were tied to loans securitized in 2013 and 2014. Sellers repurchased or provided indemnification on some $4.046 billion of mortgages during 2014, the disclosures reveal. They were split roughly evenly between Freddie ($2.031 billion) and Fannie ($2.014 billion)...[includes exclusive chart]

March 27, 2015 - IMFnews

What We’re Hearing: PHH, Worth Double? / BofA, Slow and Really Cautious / No Cut in G-Fees? Here’s Why / Protecting Your Officers and Directors / A Market on Fire: VA Lending

Glenview is bullish on Ocwen but it also owns a large stake in the nonbank...

March 27, 2015 - IMFnews

Going, Going, Gone: HARP Volumes a Shadow of What They Used to Be

Although HARP originations plunged by 76 percent last year, the FHFA may keep the program alive.

March 27, 2015 - Inside MBS & ABS

Democrats Propose Plan to Wind Down Fannie and Freddie, Expand Ginnie Role in Conventional Market

Democrats on the House Financial Services Committee have introduced legislation that would provide private and government risk-share coverage to all mortgages, create a single MBS and decommission Fannie Mae and Freddie Mac. Introduced by Reps. Jim Himes, D-CT, John Delaney, D-MD, and John Carney, D-DE, the bill would require Ginnie Mae to run an MBS program that combines private capital with government re-insurance in lieu of the current federal ...

March 27, 2015 - Inside MBS & ABS

HARP Continued Winding Down in Late 2014 as FHFA Officials Weigh Extending It Another Year

The refinance program for performing, underwater Fannie Mae and Freddie Mac mortgages staggered to a five-year low during 2014, but government officials are thinking about keeping it on life support for another year. The Home Affordable Refinance Program is slated to expire at the end of 2015. Although the Federal Housing Finance Agency has barnstormed around the country trying to drum up business, activity in the program has fallen steadily since ... [Includes two data charts]

March 25, 2015 - IMFnews

Is the IBM-Owned Seterus About to Face the Music?

Getting information out of Seterus about its business is like trying to crack the Kremlin.

March 25, 2015 - IMFnews

Short Takes: Will SCOTUS Allow Underwater Seconds to be Dismissed? / And Now a Word from RoundPoint / GSE Conservatorships: Long, Strange Trip, Man / A GSE Bill Passing? Not Likely / More on Nationstar

Although RoundPoint isn’t taking any questions regarding a possible sale of the company, it recently published a statement regarding its co-issuance and subservicing businesses.

March 25, 2015 - IMFnews

IG Report: FHFA Took 750 Conservatorship ‘Actions’ Against the GSEs in 2014

Fannie and Freddie don't get out of bed in the morning without first talking to the FHFA. (Then again, the two are in conservatorship.)

March 25, 2015 - IMFnews

Agency MBS Does Its Part: Small but Steady Growth

Fannie Mae is still the most prolific author of single-family MBS, accounting for 46.6 percent of agency MBS outstanding at Dec. 31.

March 25, 2015 - IMFnews

Nationstar Reveals More MSR Purchases, but Stock Gets Hit on News of Secondary Stock Offering

How is Fortress feeling this morning? It owns 70 percent of Nationstar's common.

March 24, 2015 - IMFnews

Ocwen Dumping ‘Clean’ GSE Servicing Rights First; Then the Hard Part Comes

But now comes the hard part for Ocwen: Unloading Fannie Mae and Freddie Mac receivables that have delinquencies.

March 23, 2015 - IMFnews

Ocwen Declared Noncompliant by NYSE; Delisting a Possibility

Although Ocwen is out of compliance with the NYSE, it continues to sell mortgage servicing rights. Late Monday it disclosed a $25 billion MSR sale to Nationstar.

March 23, 2015 - IMFnews

Depositories Hike Mortgage Holdings; More Keeping GSE Eligible Loans

Urban Institute's Karan Kaul noted that some banks have opted to keep mortgages that are eligible for sale to the GSEs.

March 20, 2015 - Inside FHA/VA Lending

Issuers Slow to Sign Up for IOPP; Ginnie Warns on Custodial Funds

Issuer registration for Ginnie Mae’s Issuer Performance Scorecard has been somewhat slower than expected, according to agency officials. The reason is unclear but only about 70 issuers so far have registered for Ginnie’s Issuer Operational Performance Profile (IOPP) tool since its launch on Feb. 17, 2015. Officials said they need to sign two-thirds more to get the IOPP system up to full speed. In a recent outreach call, officials urged those issuers who have not yet registered to contact their security officers for authority to access the Ginnie Mae Enterprise Portal (GMEP), the gateway to the IOPP system. Issuers must first be enrolled in GMEP before their security officer can grant them authority to access the IOPP system. The IOPP, also known as the Issuer Performance Scorecard, will rate each issuer’s operational performance and default management and compare them to ...

March 20, 2015 - Inside FHA/VA Lending

Large Coastal States Account for Bulk of FHA/VA Securitizations

Security issuances backed by FHA and VA loans totaled $267.6 billion in 2014, with several large states accounting for a significant share of FHA/VA originations. An estimated $158.1 billion of FHA-insured loans, including modified loans, were securitized last year, with purchase home loans comprising most of the transactions. Approximately $30.0 billion of FHA refinance loans were securitized as well. The FHA MBS had an average loan-to-value ratio of 92.3 percent and a debt-to-income ratio of 40.1 percent. The average FICO score was 672.3, which was indicative of first-time homebuyers and borrowers with slightly tainted credit. First-ranked California, Texas (#2) and Florida (#3) combined for a total of $48.0 billion, which represented 30.3 percent of FHA loans in Ginnie Mae mortgage-backed securities in 2014. Fourth-ranked New York reported a total of $6.7 billion while ... [ 2 charts]

March 20, 2015 - Inside MBS & ABS

Ginnie Mae Urges Issuers to Sign up for Performance Scorecard, Clarifies Prohibitions, Policy Changes

Signing up participants has been somewhat slower than Ginnie Mae expected since the launch of its Issuer Operation Performance Profile tool, or Issuer Performance Scorecard, in February. In a recent outreach call to issuers, Ginnie officials said they have signed up 70 issuers but still need another two-thirds of issuers to participate in the performance scoring process. They cited no reason for the slow progress of issuer registration. The IOPP tool will ...

March 20, 2015 - Inside MBS & ABS

Approvals for Ginnie MBS Issuance Slow in 2014, Suggesting Business Has Hit a Saturation Point

In fiscal 2014, Ginnie Mae approved roughly 43 companies as MBS issuer-servicers, a 44 percent reduction from the year prior, according to an analysis of agency data by Inside MBS & ABS. So far, in fiscal 2015, which began October 1 of last year, roughly 25 firms have been granted issuance approval. Moreover, the companies being given the greenlight to participate in the program are overwhelmingly nonbanks. The fall-off in both applications and ...

March 19, 2015 - Inside Mortgage Finance

The IBM-Owned Seterus Was Built on the Back Of Fannie Mae, and Now That’s About to End

For the past five years, the IBM-owned Seterus has been Fannie Mae’s “go-to” guy when it came to default management servicing, especially in regard to short sales, but the company’s future looks cloudy as problem loans run off the government-sponsored enterprise’s books. At the end of 2014, Seterus serviced roughly $27 billion of residential loans, according to data compiled by Inside Mortgage Finance. At one time, sources say, the company serviced at least ...

March 18, 2015 - IMFnews

Short Takes: Nonprime Lender Deephaven Gains a Top Executive / A Harbinger of LLPA Changes? / An Easing of Credit Standards? / Where Are Impac’s Earnings? VRM Hires Former Fannie Official

Subprime lender Deephaven Mortgage has a new executive...

March 18, 2015 - IMFnews

Ocwen Inks Yet Another MSR Sale: $9.6 Billion of Freddie Product to Walter

Ocwen Financial is turning into an MSR selling machine!

March 18, 2015 - IMFnews

Lenders More Optimistic on Profits, Mortgage Demand

Talk about optimism: Roughly 71 percent of firms surveyed said they expect purchase-mortgage demand to rise.

March 18, 2015 - IMFnews

FHFA IG Says GSE Profit Revival Won’t Last; G-Fee Doubts?

Another possible outcome on g-fees is no change at all. To date, FHFA Director Mel Watt hasn’t tipped his hand.

March 17, 2015 - IMFnews

Sources: JPMorgan the Buyer of Ocwen’s $45B Fannie MSR Portfolio

Walter Investment also was looking at the Ocwen receivables, sources said.

March 17, 2015 - IMFnews

GSE Market Share Hits Post-Conservatorship Low in 4Q

For all of last year, Fannie and Freddie securitization of newly-originated loans accounted for just 65.7 percent of MBS issuance, primarily because declining refi volume...

March 16, 2015 - IMFnews

Short Takes: So, Who’s The Lucky Captive (REIT) Approved for FHLB Membership? / 23 Responses on the CSP / Fannie Headed Downtown / Comergence Gets New Assignment

The captive insurer is owned by a REIT, a spokeswoman for the district bank said, but declined to name either.

March 16, 2015 - IMFnews

Nonbank Selling $1.34 Billion of GSE and Ginnie Mae MSRs

Texas is well represented in the bulk package being offered by Phoenix Capital.

March 16, 2015 - IMFnews

The Unhappy Return of GSE Buybacks: A 31 Percent Increase

Despite the sequential jump in buybacks, the fourth quarter total was the second-lowest repurchase amount disclosed by the two...

March 13, 2015 - Inside The GSEs

Details on Fannie’s Future Move to New Headquarters

After four decades in its storied Wisconsin Avenue building, Fannie Mae plans to return to its much earlier roots by making downtown Washington, DC, its new corporate headquarters. The company selected the current site of The Washington Post, on 1150 15th Street, NW, as its future home in January, debunking speculations of a move to other parts of the city.

March 13, 2015 - IMFnews

What We’re Hearing: Why Lenders are Suspicious of Realtors / So, What’s Wrong with a Gratuity? / The State Audited My Company and All I Got Was This Lousy Bill for Hotel and Transportation / A ‘Good’ LO Works at Least 50 Hours a Week

This mortgage manager estimates a “good” LO works 50 to 70 hours a week…

March 13, 2015 - IMFnews

$198 Billion of Agency MBS Issued in 2014 Had DTIs North of 43 Percent. The Patch?

The catch was that the so-called GSE "patch" would only last as long as Fannie and Freddie remained in conservatorship...

March 13, 2015 - Inside MBS & ABS

GSE Common Securitization Platform May Get Beta Test Later This Year

Officials from the Federal Housing Finance Agency as well as the government-sponsored enterprises will give an update on the common securitization platform project at an upcoming technology show – but don’t expect a “beta” test, at least not yet. Over the past two weeks, Inside MBS & ABS had been hearing reports that a private “demo” of the CSP was in the works – and might possibly happen at a technology show later this month in Orlando, sponsored by the Mortgage Bankers Association. FHFA principal strategist Michael Aneiro is scheduled...

March 13, 2015 - Inside MBS & ABS

‘GSE Patch’ Covers Big Pothole in Agency MBS Production; Government Has Six Years to Fix It.

Over a fifth of the loans securitized last year by Fannie Mae, Freddie Mac and Ginnie Mae do not meet one of the key criteria of the qualified-mortgage standard that came into effect in January 2014, and instead rely on an exemption for agency loans. During 2014, the three agencies securitized $198.3 billion of home loans with debt-to-income ratios exceeding 43.0 percent, according to a new Inside MBS & ABS analysis of loan-level disclosure data. That represented 21.5 percent of total MBS issuance by Ginnie and the two government-sponsored enterprises. The Consumer Financial Protection Bureau requires...

March 13, 2015 - Inside MBS & ABS

NY Court Clears BofA’s $8.5B MBS Settlement with Investors; Nomura Goes to Court Against FHFA

The dispute around an $8.5 billion settlement between Bank of America and non-agency MBS investors may be at an end after a New York state appeals court signed off on the deal. The agreement would mean a quick end to a lengthy legal battle over a settlement that was first announced on June 28, 2011. It also means the agreement could become the template for all representations-and-warranties settlements with large institutional investors, analysts said. BofA agreed...

March 12, 2015 - IMFnews

Short Takes: Trade Group Wants G-Fees Cut Now / As for Fannie & Freddie Legislation… / What Does Ocwen Do With All That Cash? / Maine Republican Worries about MMIF

Most people who are not in straight-jackets believe the chances of GSE reform by 2016 are pretty much zero. Just in case you were wondering and needed a reminder…

March 12, 2015 - Inside Mortgage Finance

Jumbo Market Showed Modest Gains in 4Q14, Claimed Growing Share of New Originations

Jumbo mortgage production last year grew its share of total originations to its highest level since well before the financial collapse that launched the era of the “agency jumbo” loan. Mortgage lenders cranked out a total of $291.1 billion of home mortgages with loan balances exceeding the old conforming loan limit of $417,000. Like everything else in mortgages, jumbo production was down from 2013, by 22.4 percent. But total mortgage originations fell...[Includes three data charts]

March 11, 2015 - IMFnews

Short Takes: LO Overtime Pay: Just Say No / Always Working? / FHFA Critical of Fannie’s Audit Committee / Fitch Rates Rushmore / Mystery Over Spike in Ocwen’s Share Price

The Supreme Court decision on overtime pay for loan officers is just over 48 hours old, but already some companies are fearing the worst...

March 11, 2015 - IMFnews

New Entrant to Mortgages A Bit Unusual: A Buyer of Lottery Winnings

A major cross-selling opportunity? A report from Credit Suisse notes that, “Every month, JGW receives over 60,000 inbound calls from consumers…”

March 10, 2015 - IMFnews

Short Takes: No Future for Common Shareholders of Fannie and Freddie? / DocMagic Furthers Electronic Closings / BofA MBS Settlement Gets One Green Light / Stonegate Hires Someone with Cha-Cha Experience

KBW, by the way, has set a $1 per share price target for both Fannie and Freddie.

March 10, 2015 - IMFnews

Fannie Mae’s Chief Risk Officer Takes Leave of Absence

Fannie Mae provided no additional information on the departure, which sounds temporary in nature.

March 9, 2015 - Inside the CFPB

Fannie/Freddie ‘Patch’ to ATR Rule Will be Extended if Needed

The CFPB’s ability-to-repay rule will likely be revised if Congress fails to enact legislation to reform the government-sponsored enterprises by the time the rule’s Fannie Mae/Freddie Mac “patch” expires in six years. Appearing before the House Financial Services Committee last week, CFPB Director Richard Cordray and committee chairman Jeb Hensarling, R-TX, went back and forth over the accuracy of a study the Federal Reserve did a few years ago about the potential impact the ATR rule could have on the market, specifically in terms of limiting borrower access to credit. Cordray said he disagreed with the findings of the report, asserting that the Fed’s study was based on provisions that were substantially different than what were ultimately adopted. Hensarling then ...

March 9, 2015 - IMFnews

Short Takes: Dump Walter, Says Compass Point / Cerberus Pulls Mortgage IPO / Not Exactly the Best Track Record in Mortgages / A GSE Solution is Essential to the Future of Mortgage Banking / A Six-Year ARM From First Savings

Cerberus hasn’t had the best track record with its mortgage investments over the years...


With the recent dip in interest rates, how do you feel about loan volumes this year?

We see loan production ending 2015 flat compared to 2014.


We’re optimistic that our originations will rise by 10 to 20 percent year over year.


We’re really optimistic: We expect production to increase by 20 percent or better from last year.


We’re not so bullish. Originations for us may actually fall.


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