Agency MBS

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

November 24, 2015 - IMFnews

Short Takes: Loan Brokers See a Drop in Market Share / NAR, Others Want GSE Language Attached to Spending Bill / Who Said Treasury Wants to Sell Its Preferred Stock Anyway? / Fannie and Freddie are Not Equal / Angel Oak Offers a 10 Percent Subprime Loan

In case you’re wondering, Fannie Mae has a market capitalization rate of $12.28 billion, Freddie Mac $6.86 billion. Why?

November 24, 2015 - IMFnews

IMA Working on MSR Deals that Could Net Almost $3B of Flow and Bulk

It may be holiday week, but Interactive Mortgage Advisors is out with a handful of new MSR offerings...

November 24, 2015 - IMFnews

Freddie Mac: Regulation Could Re-Ignite Consolidation of the Servicing Market

"Many servicing functions resemble the assembly line processes used in auto manufacturing," said a new report from Freddie Mac.

November 24, 2015 - IMFnews

Is a Cut in Fannie/Freddie Guaranty Fees in the Cards for 2016?

Barclays believes there is both an economic argument and a policy argument for reducing GSE guaranty fees…

November 24, 2015 - IMFnews

Are Mortgage Lenders Missing the Mobile Boat?

However, 40 percent of those lenders who do not offer a mobile app plan to make one available over the next 12 months.

November 23, 2015 - IMFnews

Mixed Views Abound on GSE Loan Limits

The 2008 Housing and Economic Recovery Act stipulated that the baseline limit could not be lowered when house prices were falling. And during recovery, there could be no increase until the HPI reached its previous high, in the third quarter of 2007.

November 23, 2015 - IMFnews

Evidence Points to a Slight Expansion of the GSE Credit Box

Despite changes to GSE to representations-and-warranties policies, lenders are still avoiding the riskiest segments of the market.

November 20, 2015 - Inside The GSEs

GSE Roundup

FHFA Seeking Comments on Borrower Survey. The Federal Finance Housing Agency is seeking public comments concerning the information collection known as the “National Survey of Existing Mortgage Borrowers” (NSEMB). The NSEMB will be a periodic, voluntary survey of individuals who currently have a first mortgage loan secured by single-family residential property and will consist of about 80 to 85 questions. The comment period ends Jan. 11. SIFMA Supports Nomura’s Appeal in FHFA Case. The Securities Industry and Financial Markets Association recently filed an amicus brief in support of the defendants to reverse a case in which the Federal Housing Finance Agency argued that Nomura Holdings sold shoddy mortgage-backed securities to Fannie Mae and Freddie Mac.

November 20, 2015 - Inside The GSEs

Unexpected Rate Changes Affected GSE Hedging Losses in 3Q15

The hedging effects of Fannie Mae and Freddie Mac – including instruments bought to protect the value of agency MBS – had different results in the third quarter as interest rates unexpectedly declined and stayed low for several weeks. Overall, Fannie booked $2.6 billion of negative charges against the value of its derivatives in the third quarter, while Freddie booked a much larger charge on its hedging activities: $4.2 billion. The differential did not pass without notice, especially since earlier this month Fannie reported a companywide profit of $2.0 billion and Freddie spilled red ink of $475 million. Even Federal Housing Finance Agency Director Mel Watt chimed in on Freddie’s loss, a rarity for the regulator who usually only issues statements when he has to.

November 20, 2015 - Inside The GSEs

FHFA Expands NSI to Prevent Foreclosures in Hard-Hit Cities

After launching pilot programs in Detroit last year and Chicago earlier this year, the Federal Housing Finance Agency recently announced that it is significantly expanding its foreclosure prevention initiative by adding 18 new markets. The Neighborhood Stabilization Initiative gives community organizations the first opportunity to buy foreclosed properties from Fannie Mae and Freddie Mac. Beginning in December, NSI will grow to the 20 markets that suffered the most from the housing crisis. Each GSE had at least 100 real-estate-owned properties valued at less than $75,000 in each of those markets. The goal of the program is to help stabilize neighborhoods by letting local community organizations get an exclusive first look...

November 20, 2015 - IMFnews

What We’re Hearing: FHA Premium Cut Coming…Eventually / A 4 Percent Capital Minimum for the FHA MMIF?/ Good, Let the Banks Leave / Tony Hsieh Addresses Scuttled IPO / Can loanDepot’s LOs Surf? / New Day Fined by the NYDFS

In the same blog post, Hsieh – who did not talk to the press about the scuttled IPO – described loanDepot as a “unicorn startup,” calling it “one of the very few success stories not from Silicon Valley.

November 20, 2015 - Inside MBS & ABS

Procedural Delays Prompts HUD IG to Withhold Opinion on GNMA’s FY 2015, Restated Financials

The inspector general of the Department of Housing and Urban Development refused to sign off on Ginnie Mae’s fiscal 2015 financial statement and its restated financial statement for FY 2014 due to lingering concerns about the accuracy of both statements. The IG said it was unable to obtain sufficient evidence to express an audit opinion on the fairness of the $5.4 billion in non-pooled, defaulted mortgage loans still held by Ginnie Mae. The agency also continued to use improper ...

November 20, 2015 - Inside MBS & ABS

Moody’s Praises Freddie’s Second Whole-Loan Securities Deal, Noting Features Better Than Non-Agency MBS

The second whole-loan securities risk-transfer transaction from Freddie Mac received a rating from Moody’s Investors Service. The rating service said the $634.64 million deal included a number of improvements compared with non-agency MBS, which have a similar structure. Much like non-agency MBS, the deal was backed by mortgages and included senior and subor-dinate tranches available for purchase by investors. The M1 tranche of FWLS 2015-SC02 ...

November 20, 2015 - IMFnews

Strong Opposition to FINRA Proposal on Margin Requirements for TBA MBS

FINRA made some concessions to the industry in the proposal issued in October, but many MBS traders warned of dire consequences if the proposed margin requirements take effect.

November 20, 2015 - IMFnews

Bank MBS Holdings Soar to a New Record in 3Q15; BofA Especially Hungry

Bank of America grew its MBS holdings by a stunning 22.7 percent in the third quarter, according to Inside MBS & ABS.

November 19, 2015 - Inside Mortgage Finance

Government Lending Bucked 3Q15 Downturn In Originations, Purchase Volume Up Sharply

The bottom fell out of the mortgage-refinance market in the third quarter of 2015, and not even a historic surge in purchase-money lending could pick up the slack, according to a new Inside Mortgage Finance analysis and ranking. An estimated 32.5 percent freefall in refi originations during the third quarter had a much bigger impact on the conventional market than on government-insured lending. Conventional-conforming mortgage production fell ... [Includes two data charts]

November 19, 2015 - IMFnews

Short Takes: Industry to Fed: Raise Rates Already / Want to Increase Housing Affordability? Convince Sellers to Cut Their Asking Prices / UG Rolls Out Expanded Guidelines for Doctors and Lawyers / CHMI Closes on MSR Purchase / Landes to Head Sales at Stonegate

Quite a few executives believe the central bank should move forward with a “one and done” strategy and be done with it...

November 19, 2015 - IMFnews

New Bulk MSR Offerings from MIAC and Phoenix Capital

Interest rates are rising and that means more MSR packages are likely to hit the market.

November 19, 2015 - IMFnews

Government Lending Bucked the Third Quarter Downturn Trend

An estimated 32.5 percent freefall in refi originations during 3Q had a much bigger impact on the conventional market than on government-insured lending.

November 17, 2015 - IMFnews

Short Takes: Congress Turns Grinch on GSE CEO Salaries / A Disappearing Asset: GSE REO / VantageScore Sees Huge Gain in Orders / Two Harbors Adds Former RBC Vice Chair to Its Board

At the end of fiscal year 2015 the two GSEs had combined REO holdings of 78,738 units, a 36 percent decline from the prior year…

November 17, 2015 - IMFnews

Even Though the GSEs are Shrinking, the FHFA and OIG Keep Adding Employees

In a past audit, the OIG criticized the FHFA for lacking a “sufficient number of examiners.” In the new budget, the FHFA plans to increase its examinations head count to 275 from 248 in FY 2015.

November 17, 2015 - IMFnews

REITs Continue to Shy Away from Mortgage Securities; Is the MBS ‘Trade’ Dead?

This observer, requesting anonymity, said bluntly that the MBS “trade” is over, a summation that is bolstered in part by so many Wall Street firms either closing their trading desks or scaling back...

November 13, 2015 - Inside FHA/VA Lending

Around the Industry

FHA to Unveil FY 2015 MMIF Audit Results. On Nov. 16, the FHA will release its 2015 annual report to Congress, a document that historically has included the results of the annual actuarial audit of the Mutual Mortgage Insurance Fund, or MMIF. Early in the day, Ed Golding, principal deputy assistant secretary for the Department of Housing and Urban Development’s Office of Housing, is scheduled to brief reporters on the report and take questions. As reported by Inside FHA/VA Lending, the reduction in the annual mortgage insurance premium earlier this year has put the MMIF on an accelerated path to recovery. But whether the ensuing increase in FHA production – which translates into additional premiums – will be enough to get the fund back to its statutory 2 percent capital reserve ratio remains ...

November 13, 2015 - Inside FHA/VA Lending

Nationstar Seeks to Raise FHA/VA Origination Volumes, Recaptures

Nationstar Mortgage is looking to enhance its FHA and VA lending and increase the recapture rate for the two loan products, according to the company’s top executives. In its third-quarter earnings call, Nationstar CEO Jay Bray told analysts the company has initiated targeted marketing efforts for refinancing opportunities for FHA and VA borrowers. In the third quarter, Nationstar’s overall origination segment increased funding to nearly $5 billion and raised its recapture to 28 percent. The company has reported profitability for five consecutive quarters and posted $50 million in earnings. Servicing profitability improved for the third quarter to 3.6 basis points, a 57 percent improvement from the prior quarter. In addition, the company generated strong cash flows of $172 million during the period. Ranked 17th among the top FHA lenders in the third quarter, Nationstar originated ...

November 13, 2015 - Inside FHA/VA Lending

MPF Program, Ginnie Mae Unveil Broader Government MBS Product

The Federal Home Loan Bank System is seeking to boost its share of government-backed lending and the Ginnie Mae market with a new servicing-release option for FHA, VA and rural housing mortgages that are sold into the Mortgage Partnership Finance program. The new feature adds to an existing servicing-retained execution in the MPF Government Mortgage-Backed Securities program. The current servicing-retained component requires participating lenders to service loans they originate and sell into the MPF conduit. The servicing-release option from Nationstar Mortgage, a top-10 mortgage servicer based in Dallas, will provide lenders with greater pricing flexibility so they can become more competitive in the communities they serve, said Matt Feldman, president of the Chicago FHLB. Only FHLBank members that are participants in MPF can use the government MBS program. In order to ...

November 13, 2015 - Inside FHA/VA Lending

PHH Mulls Continued Participation In FHA, Will Proceed Cautiously

Facing the possibility of a potential False Claims Act lawsuit, PHH Corp. is reconsidering its participation in the FHA mortgage insurance program. Though PHH’s FHA segment represents only 3 percent of its mortgage volume over the past 12 months, the company will proceed cautiously as it evaluates the risk-adjusted return of FHA products and programs, said Glenn Messina, PHH president and chief executive.Ranked 50th among FHA lenders as of June 30, 2015, PHH expects more regulatory challenges in 2016 as well as rising compliance costs, said Messina during a third-quarter earnings call. In its latest quarterly filing, PHH disclosed receiving a subpoena from the inspector general of the Department of Housing and Urban Development for documents related to, among other things, FHA loan origination and underwriting practices. Like several other FHA lenders, PHH is ...

November 13, 2015 - Inside Nonconforming Markets

News Briefs

Freddie Mac is preparing to sell its second “Whole Loan Securities” transaction, according to a presale report from Moody’s Investors Service. The planned $634.64 million deal will be structured like a non-agency mortgage-backed security with senior tranches and subordinate tranches. Unlike the first deal from the government-sponsored enterprise, the planned issuance received ratings on some of the subordinate tranches. The unrated senior ... [Includes three briefs]

November 13, 2015 - IMFnews

What We’re Hearing: loanDepot, What the Heck Happened? / Marketing Itself as Technology and Consumer Finance Firm / Eventually, the IPO Will Happen / Salivating Short Sellers? / Waiting on the FHA MMIF Audit

A handful of hedge funds were salivating at the prospect of shorting loanDepot's stock...

November 13, 2015 - Inside MBS & ABS

Chicago Federal Home Loan Bank, Ginnie Mae Unveil Servicing-Release Option for Ginnie MBS

The Federal Home Loan Banks appear to be eyeing a bigger share of the government-backed lending market with the announcement of a new servicing-release option for FHA, VA and rural housing loans sold into the Mortgage Partnership Finance program. The addition of a servicing-released option from Nationstar Mortgage, a top-10 mortgage servicer, to an already existing servicing-retained execution will give participating lenders greater flexibility in pricing and selling government-backed mortgages they have originated into the secondary market, said Matt Feldman, president of the Chicago FHLB. Previously, program participants were required...

November 13, 2015 - Inside MBS & ABS

SIFMA Supports Nomura’s Appeal in FHFA Case, Questions Claim Timeframe

The Securities Industry and Financial Markets Association recently filed an amicus brief in support of the defendants to reverse a case in which the Federal Housing Finance Agency argued that Nomura Holdings sold shoddy MBS to Fannie Mae and Freddie Mac. In the case of FHFA vs. Nomura Holdings, a judge ruled in May, after a three-week bench trial, that Nomura and RBS Securities were liable for the claims brought by the FHFA and knowingly sold bad MBS to the government-sponsored enterprises before the 2008 financial crisis. The MBS were backed by mortgages with an unpaid principal balance of about $2.05 billion at the time of purchase. Nomura appealed...

November 13, 2015 - IMFnews

Recapping the GSEs While Promoting Affordable Housing – Can Such a Concept Fly?

The authors want the Treasury Department to end the quarterly profit sweep and allow Fannie and Freddie to raise about $100 billion in additional capital through several rounds of new common stock sales...

November 13, 2015 - Inside MBS & ABS

Unexpected Changes in Rates Affected Hedging Losses At the GSEs. In the End, It’s All a ‘Wash’ – Right?

The hedging results of Fannie Mae and Freddie Mac – including instruments bought to protect the value of agency MBS – had different results in the third quarter as interest rates unexpectedly declined and stayed low for several weeks. Overall, Fannie booked $2.6 billion of negative charges against the value of its derivatives in the third quarter while Freddie booked a much larger charge on its hedging activities: $4.2 billion. The differential did not pass...

November 13, 2015 - IMFnews

Freddie Mac’s Planned Whole Loan Securities Transaction Receives Rating

The loans to be included in the deal are similar to the types of mortgages that have been included in jumbo MBS issued in recent years.

November 12, 2015 - Inside Mortgage Finance

Study Touts Strategy to Promote Affordable Housing Through GSE Recapitalization

Promoting affordable housing by recapitalizing Fannie Mae and Freddie Mac is the premise of a new study released this week by the Brookings Institution arguing that their conservatorship should come to an end. Obama administration officials have previously rejected such proposals. The paper noted that the Treasury Department’s sweep policy, which takes the bulk of Fannie’s and Freddie’s profits, limits the government-sponsored enterprises’ ability to promote homeownership and expand access to affordable home ownership, especially among low-income households. Robert Shapiro, former Brookings fellow, and chairman of Sonecon, LLC, along with Elaine Kamarck, a senior fellow at Brookings, said...

November 12, 2015 - Inside Mortgage Finance

Is a Five-Year Old Nonbank That Services Just $21 Billion in Loans Worth Upwards of $621 Million?

loanDepot Inc. this week priced its much anticipated initial public offering, valuing its soon-to-be-listed shares – 34.5 million units in total – at $18 each or roughly $621 million, a lofty valuation for a company that owns just over $20.9 billion in mortgage servicing rights. Few in the industry are questioning loanDepot’s explosive growth since its inception five years ago, but eyebrows have been raised about the anticipated size of the deal. “It’s...

November 12, 2015 - Inside Mortgage Finance

MSR Marks Caused Plenty of Red Ink in 3Q15, But a Recovery is at Hand – And Then Some

Thanks to declining interest rates and higher prepayment speeds in the third quarter – especially on Ginnie Mae receivables – several publicly traded nonbanks were forced to write down the asset value of their mortgage servicing rights, causing millions of dollars in red ink. According to a review by Inside Mortgage Finance of the earnings statements of six nonbanks, the combined servicing markdown was an ugly $448 million. The group includes Nationstar Mortgage, Ocwen Financial, PennyMac Financial Services, PHH Corp., Stonegate Mortgage and Walter Investment Management Corp., the parent of Ditech Financial. Walter took...

November 11, 2015 - IMFnews

Short Takes: Sen. Ted Cruz Wants to Kill HUD / A New 52-Week Low for Altisource Asset Management / Fannie Mae’s HQ Finally Hits the Market / NMI Gets Senior Secured Loan / The Fastest-Growing Servicers Among Us

Sen. Rand Paul, R-KY, said he would not touch the mortgage interest deduction, but Dr. Ben Carson wasn't as friendly...

November 11, 2015 - IMFnews

FHFA Unveils Large Expansion of Areas Where Community Groups Get First Crack at REO

The goal of the program is to help stabilize neighborhoods that were hardest hit by the real estate downturn by letting local community organizations review and purchase foreclosed properties first.

November 11, 2015 - IMFnews

Fannie and Freddie: A Tale of Two Different G-Fees

Fannie and Freddie passed through of $661 million of g-fee money in the third quarter, up 4.6 percent from 2Q...

November 10, 2015 - IMFnews

Short Takes: Goldman and Fortress Win the Bid for Fannie NPLs / It’s Hard Out There for a Mortgage REIT / UG Gets Good Grade on Security / InterLinc Mortgage Hires Former Envoy Executive

The nation’s largest mortgage investing REIT, Annaly Capital Management, reported a $627 million loss in the third quarter compared to a $900 million profit in 2Q.

November 10, 2015 - IMFnews

Freddie Mac Launches Another $1B-Plus NPL Auction; Plenty of Product Left in the Well

According to Freddie’s recent 10-Q filing, the GSE has plenty of NPLs left to sell.

November 9, 2015 - IMFnews

October Tally: A Slowdown in Fannie Mae, Freddie Mac Securitizations

Wells Fargo once again ranked first among all GSE sellers with a market share of 15.3 percent in October, almost triple that of the number two ranked Quicken Loans.

November 6, 2015 - Inside Mortgage Trends

Agency Channel Analysis: Top Sellers 3Q15

November 6, 2015 - Inside Mortgage Trends

Consumers Expecting More in Financial Dealings

Nobody likes getting a mortgage, but interactive technology – if implemented correctly – can make the process significantly more transparent and less stressful, industry experts say. There is an opportunity in technology to make the system more transparent and help educate the next generation of homeowners, as well as minority groups, said Robert Greenbaum, director of communications and marketing at Fannie Mae, during a panel session at the annual convention of the Mortgage Bankers Association. “They aspire...

November 6, 2015 - Inside The GSEs

Fannie Mae's Headquarters Now on the Market in Washington

Fannie Mae’s most recognizable headquarters in Washington, DC, along with two others, recently hit the market as the GSE plans to sell the properties in preparation for its move downtown in 2017. Commercial real estate firm Cushman & Wakefield began marketing the GSE’s three properties in late October. They include the storied main building at 3900 Wisconsin Ave., which replicates Williamsburg, VA, architecture, a smaller building at 3939 Wisconsin Ave. and Fannie’s 1990’s-era building at 4240 Connecticut Ave. The primary building and land are currently valued at approximately $92.1 million, according to 2015 records from the DC Office of Tax and Revenue. The Connecticut Avenue building is valued at $84 million and the 3939 Wisconsin Ave. building is...

November 6, 2015 - Inside The GSEs

Freddie Describes Single-Security Transition Via Legacy PC Exchange

Investors will be able to exchange existing Freddie Mac participation certificates for new single securities when the GSE creates new “mirror” securities to help facilitate the transition. The exchange program will be available when the new single security goes live and Freddie plans to keep it open for the foreseeable future. Held in a Federal Reserve account, the mirror securities will not increase the outstanding principal balance of Freddie MBS, the GSE explained in an update on the exchange program. The mirror securities will track existing Freddie MBS but substitute a 55-day payment cycle for Freddie’s current 45-day cycle. Freddie will pay compensation equal to the fair market value of the 10 days of lost float when...

November 6, 2015 - Inside The GSEs

House Vote to Cap GSE's CEO Salaries Rescheduled

A bill to cap the salaries of Fannie Mae and Freddie Mac CEOs at $600,000 is expected to become law, but has been rescheduled for vote in the House sometime during the week of Nov. 16. The budget vote last week, coupled with the debate over the Export-Import Bank and election of a new House Speaker, resulted in the salary cap legislation being postponed for a floor vote at a later date this month, said Rep. Ed Royce, R-CA. Royce introduced the “Equity in Government Compensation Act” back in May. It would suspend the $4 million compensation packages for Fannie’s Timothy Mayapoulos and Freddie’s Donald Layton that were approved early this year after...

November 6, 2015 - Inside The GSEs

FHFA: Freddie's 2014 Low-Income Home Purchase Goals Not Met

The Federal Housing Finance Agency determined that Freddie Mac did not meet all of its low-income and very low-income home-purchase goals for 2014, according to the FHFA’s preliminary annual housing report released on October 30. Under the GSEs’ affordable housing goals, low-income is for home-purchase mortgages to families with incomes no greater than 80 percent of the area median income, and the very low-income home- purchase goal is for families with incomes no greater than 50 percent of AMI. Freddie fell short of meeting both goals. The low-income home-purchase goal was 23 percent and Freddie ended 2014 at 21 percent. The very low-income home-purchase goal was 7 percent and Freddie topped out at 4.9 percent.

November 6, 2015 - IMFnews

What We’re Hearing: PHH, the Poster Child of Regulatory Scrutiny / $106 Million in Legal Reserves and Counting / Will Rep. Garrett Congratulate Freddie on What Might be a Blow-Out 4Q? / PennyMac Shines / Pinto Slams the Fed

Now that rates are rising, one might expect Freddie to have a blow-out quarter in 4Q. Will Rep. Garrett issue a statement in February congratulating the GSE on a great job?

November 6, 2015 - Inside MBS & ABS

Ginnie Mae President Admits Excessive Cautiousness Caused Material Misstatements in FY 2014 Financials

Overly conservative accounting, subpar servicing, lack of claims data and a desire to protect taxpayers from mortgage-related losses contributed to the material flaws in Ginnie Mae’s FY 2014 financial statements. Ginnie Mae is working to implement a recommendation by the Department of Housing and Urban Development inspector general to use generally accepted accounting principles (GAAP) in restating its 2014 financial statement and adjusting affected prior-year financials, according to Ted Tozer, president of the agency. Tozer noted...


Should the FHA cut premiums?

Yes, the MMIF has surpassed the 2 percent minimum. It’s time to help first-time home buyers.
Yes, but not until mid-2016 at least, when we see how the fund is doing.
No. The MMIF needs to rebuild and prepare for another potential downturn – just in case.
No. We believe the minimum ratio should actually be raised to 4 percent or higher.
I am undecided.

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