Agency MBS

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

August 29, 2014 - Inside FHA Lending

Over $65B in FHA Loans Securitized in 1H14

An estimated $65.5 billion of FHA-insured mortgages, excluding reverse and modified loans, were included in Ginnie Mae mortgage-backed securities issued during the first six months of 2014, according to an Inside FHA Lending analysis of agency securitization data. Ginnie Mae FHA MBS issued during the first half of the year nearly matches the total number of new FHA loans originated over the same period (see related chart, p. 4-5). FHA purchase home mortgages served as collateral on 76.3 percent of Ginnie Mae MBS issued over the six-month period, while loans to first-time homebuyers accounted for 63.0 percent of Ginnie MBS issued during the period. The FHA loans in Ginnie pools over the last two quarters showed an average FICO score of 681, a loan-to-value ratio of 92.5 percent and an average loan amount of $169,093. Except for fifth-ranked Freedom Mortgage, the rest of the top five ... [1 chart]


August 29, 2014 - IMFnews

What We’re Hearing: The Never Ending Ocwen Story / Moody’s Downgrades Ocwen / No HQ Sale for Freddie Mac / Will the CFPB Buy the Fannie Property? / Now, Why Does Fannie Mae Need an Attorney with NYSE Knowledge?

Where will Fannie Mae ultimately windup? The early betting is the Washington waterfront near Nationals Park…


August 29, 2014 - Inside FHA Lending

GNMA Unable to Use $200 Million Windfall

Roughly $1 billion in damages will flow through to the FHA and Ginnie Mae from Bank of America’s record $16.65 billion global mortgage-backed securities settlement with the Department of Justice. Although most of the DOJ’s case centered around faulty private-label MBS that BofA and its forbears (namely Countrywide and Merrill Lynch) underwrote during the housing boom, a small piece of the settlement is tied to servicing chores that the bank did for Ginnie Mae. And apparently, BofA didn’t do a very good job of servicing the underlying product. The bank took over as the subservicer on roughly $26.2 billion in mortgage servicing rights that once belonged to Taylor, Bean & Whitaker, a large nonbank based in Ocala, FL. When TBW went bust in the second half of 2009, BofA was given the subservicing contract. “BofA serviced the loans for us,” said Ginnie Mae president Ted Tozer. “And they did a ...


August 29, 2014 - IMFnews

FHFA IG: Freddie Mac Could Save Millions by Reviewing More Servicer Claims

In 2013, Freddie Mac reimbursed its servicers $1.4 billion but identified and denied $126 million in what the IG calls “erroneous” claims.


August 29, 2014 - IMFnews

Non-Agency Players Want Fannie/Freddie Loan Limits Lowered, But…

The American Bankers Association believes GSE loan limits in much of the nation could be reduced.


August 28, 2014 - IMFnews

Short Takes: Maybe Freddie Mac Will Sell its HQ Too? / A GSE in Montana? / Ocwen Executive Selling Shares / About Those Private MBS Placements… / Benmosche Stepping Down from AIG

But if Fannie and Freddie sell their headquarter properties, shouldn’t they move to a low cost state like Wyoming or Montana? I


August 28, 2014 - IMFnews

Fannie Mae and Freddie Mac Continue to Lose MBS Market Share

Since the collapse of the non-agency market back in 2008, Fannie and Freddie have generally accounted for over 70 percent of new MBS production.


August 28, 2014 - IMFnews

Fannie Mae Will Sell Headquarters in Washington. But What’s The Land Worth?

Back in the 1980s, when Fannie Mae was losing $1 million a day, it contemplated selling the property and came up with a value of $10 million to $15 million. Today, it's worth much more than that.


August 28, 2014 - IMFnews

SEC Revamps Requirements for Rating Services, Due Diligence Firms

Due diligence providers that work on MBS and ABS also will have to provide certifications to the rating services which will be disclosed on each rating issued.


August 27, 2014 - IMFnews

Moody’s, Urban Institute Want Changes to FHFA’s MI Eligibility Rules

In early July, the FHFA unveiled the new MI eligibility standards, which propose – for the first time – risk-based capital rules that are tied to a measurement called “available assets.”


August 26, 2014 - IMFnews

Short Takes: Will the FHFA Extend the Comment Period for MI Firms? / Some Consumers Believe HARP is a Scam / Freddie (and Fannie) Got Taken by a Wolf / Bill Erbey (Indirectly) Owns a Much Larger Stake in Altisource

Indirectly, Bill Erbey controls about 5.9 million shares of Altisource through a limited liability company called Salt Pond Holdings.


August 26, 2014 - IMFnews

FHFA IG Places Blame for TBW Scandal on Regulators, Counterparties, Investors

The FHFA IG claims a Fannie Mae executive back in 2000 discovered that TBW had pledged the same collateral – mortgages – to both Fannie and another company. But then Fannie took no action until two years later.


August 25, 2014 - IMFnews

Short Takes: Altisource to Hire 500 Workers…in India / Altisource Investors Not Happy? / Phoenix Capital Stays Busy with MSR Deals / Atlanta FHLB Joins MPF Program / 360 Mortgage Hires Western Regional Manager

Altisource shareholders are not happy campers these days. The firm’s stock is trading at $91 compared to a 52-week high of $171.


August 25, 2014 - IMFnews

In Settling with the FHFA, Goldman Will Buyback PLS for $3.15 Billion

According to the Inside Mortgage Finance MBS Database, the original unpaid principal balance of the PLS deals in question was almost $40 billion.


August 25, 2014 - IMFnews

Subsidiary of Publicly Traded Firm Selling $1.1 Billion of MSRs

Written bids are due by Wednesday, Aug. 27 with the closing coming by the end of October. LoanCare is listed as the subservicer.


August 25, 2014 - IMFnews

Most of the Mortgage Industry Does Not Want a G-Fee Hike

SIFMA said the FHFA should view g-fees not as “static amounts,” but rather as compensation for credit enhancements that may vary from time to time.


August 22, 2014 - Inside The GSEs

Fannie, Freddie MBS Business Activity Increases in July

Fannie Mae and Freddie Mac in July posted a combined increase in the volume of single-family mortgages they securitized, according to a new Inside The GSEs analysis.Fannie and Freddie issued $57.9 billion in single-family mortgage-backed securities in July, a 12.3 percent increase from June. However, July’s MBS issuance was down 59.0 percent on a year-to-date basis.


August 22, 2014 - Inside The GSEs

Enterprise Endnotes

Fannie, Freddie Subprime Holdings Continue to Run Off. The GSEs’ holdings of nonprime mortgages continue to decline, largely due to runoff, according to a new analysis by Inside Nonconforming Markets, an affiliated publication. Fannie Mae and Freddie Mac held a combined $252.2 billion of Alt A and subprime mortgage assets at the end of the second quarter, down 18.3 percent from 2Q13. Purchased/guaranteed mortgages account for 71.9 percent of the holdings, with the rest of the GSEs’ nonprime exposure in non-agency mortgage-backed securities.


August 22, 2014 - Inside The GSEs

Report: Don’t Expect GSE Reform Until At Least 2016

There is little to no chance of legislative GSE reform occurring until at least 2016, so market participants should plan accordingly, predicted a report issued last week. Despite two separate bills awaiting a floor vote in both the House and Senate, Kroll Bond Rating Agency said there’s little chance housing reform legislation will garner enough support to pass until after the next presidential election.


August 22, 2014 - Inside The GSEs

FHFA Seeks Feedback on Proposed Strategic Plan for 2015-2019

Fannie Mae’s and Freddie Mac’s conservator and the regulator of the Federal Home Loan Bank system is requesting input on its strategic plan for the next four years. The Federal Housing Finance Agency is seeking feedback on its draft document “FHFA Strategic Plan: Fiscal Years 2015-2019.” The plan sets the agency’s priorities in its oversight of the two GSEs and the 12 FHLBanks. The plan lists three strategic goals: ensure safe and sound regulated entities; ensure liquidity, stability and access in housing finance; manage the enterprises' ongoing conservatorships.


August 22, 2014 - Inside The GSEs

IG Dings FHFA for Lax Oversight of Fannie Short Sales Closed at Loss

Delegated servicers hired by Fannie Mae failed on numerous occasions to close short sales at the authorized price, according to a new audit from the Inspector General of the Federal Housing Finance Agency. The IG also found that a Fannie Mae remediation plan does not hold servicers fully accountable for the resulting losses. Issued late last week, the IG audit focused on the effectiveness of the FHFA’s oversight and Fannie’s controls over delegated servicers to ensure that net proceeds for short sales met the authorized reserve established by Fannie. The IG found that both the GSE and its regulator came up short.


August 22, 2014 - Inside The GSEs

FHFA’s Proposed G-fee Increase Enjoys Little Industry Support

As the Federal Housing Finance Agency mulls over a proposed increase in fees charged by the GSEs to provide guarantees on mortgage-backed securities, so far those advocating for a g-fee hike remain in the minority. The Securities Industry and Financial Markets isn’t flatly opposed to an increase in g-fees under certain conditions but policy makers should “consider the broader context” in which the guaranty fee will be raised.


August 22, 2014 - Inside The GSEs

New Suit By Common GSE Investors Seeks Injunction of Profit Sweep

Pershing Square Capital Management – reportedly the largest investor in Fannie Mae and Freddie Mac common shares – filed two separate lawsuits last week demanding the federal government cease and desist its “net worth sweep” of GSE profits. The New York hedge fund contends that the government’s action not only illegally shortchanges investors of the GSEs’ common, it also amounts to a de facto liquidation of the two firms, according to its first complaint filed with the U.S. Court of Claims in Washington. The first complaint lists the U.S. as a defendant, as well as Fannie and Freddie as nominal defendants.


August 22, 2014 - Inside The GSEs

GSE Shareholder Group Calls on FHFA to End Conservatorship

The head of a group of disenfranchised Fannie Mae and Freddie Mac investors has called on Federal Housing Finance Agency Director Mel Watt to end conservatorship of the two GSEs and undo what stakeholders consider the illegal government “net worth sweep” of Fannie and Freddie profits. Tim Pagliara, executive director of Investors Unite, followed Watt to Atlanta to seek a meeting with and to put pressure on the director to acknowledge the concerns of GSE shareholders.


August 22, 2014 - Inside The GSEs

FHFA Proposed Single GSE Security First Step Toward ‘Fannie Mac’?

The Federal Housing Finance Agency’s request for public comments last week on the structure for a proposed GSE security has some industry insiders wondering if this is the prelude to the eventual consolidation of “Fannie Mac.” The implementation of the single security issued and guaranteed by Fannie Mae and Freddie Mac would be part of a “multi-year initiative” to build a common securitization platform.


August 22, 2014 - IMFnews

What We’re Hearing: Banks to FDIC: Drop Dead / FHA and Ginnie Get a Chunk of the Massive BofA Settlement / Should DOJ Sue a Dead Subprime Executive? / LO Profession in Bifurcation Mode / The Pain Caused by Ocwen / DocMagic Gets CFPB Contract

A fair question to ask is this: If DOJ goes after Mozilo, why not go after the owners of Ameriquest/Argent which created so much of the faulty subprime product that Greenwich securitized?


August 20, 2014 - IMFnews

Short Takes: Former Subprime CEO Continues On / Privlo Definitely Did Not Raise $350 Million / Comerica Seeks Warehouse Manager for LA / More Regulations Coming from the CFPB? / A Sea Change in Fannie Underwriting Guidelines?

A big deal or ho-hum: Fannie Mae in late July said it will allow for shorter waiting periods involving mortgage debt charge-off accounts and mortgage debt that is discharged through a bankruptcy.


August 20, 2014 - IMFnews

GSE Shareholder Group Gets Face Time with FHFA’s Watt, But…

Investors Unite now boasts almost 1,000 members, which include both common and preferred stakeholders in Fannie Mae and Freddie Mac.


August 20, 2014 - IMFnews

$7 Billion-Plus in MSRs Up for Grabs Through Three Auctions

Servicing advisors told IMFnews that many of the bulk deals they have been seeing of late are $4 billion in size or under.


August 19, 2014 - IMFnews

Pershing’s Second GSE Lawsuit Seeks ‘Net Worth Sweep’ Injunction

Unlike the various 20 lawsuits filed against the government, Pershing Square Capital Management's legal actions focus on common shareholders.


August 18, 2014 - Inside the CFPB

Most Lenders Expect Increased Costs as a Result of QM Rules

Nearly three-fourths (74 percent) of senior mortgage executives surveyed by Fannie Mae’s Economic and Strategic Research Group in June indicated that they expect operational costs to increase as a result of the CFPB’s ability-to-repay/qualified mortgage rule. Most lenders (80 percent) said they “do not plan to pursue non-QM loans” or prefer to “wait and see”. “Larger lenders are more likely to pursue non-QM loans to increase their market share,” Fannie said. Also, most firms (84 percent) reported that they expect at least 90 percent of their single-family mortgage origination dollar volume to still be considered qualified mortgages. Further, “Lenders, on net, expect to tighten credit standards as a result of QM rules,” according to the government-sponsored enterprise, with 36 percent ...


August 15, 2014 - Inside FHA Lending

GNMA’s Conversion Plan: Devil is in the Details

Two industry trade groups expressed support for consolidating Ginnie Mae’s mortgage-backed securities program and creating a new MBS but they are at loggerheads on some of the details. Commenting on the Ginnie Mae proposal, the Securities Industry and Financial Markets Association (SIFMA) and the Mortgage Bankers Association (MBA) said the disagreements are mostly on how to resolve issues related to winding down the Ginnie Mae I MBS program and providing a conversion option for existing securities. “It is clear that further discussion is warranted, and direct engagement with key stakeholders should be beneficial,” the trade groups suggested. Ginnie Mae has received considerable support from a variety of industry players for its “straw man” proposal to shift to a single MBS program based on the existing Ginnie II. The program now accounts for more than 90 percent of all ...


August 18, 2014 - IMFnews

Subprime Holdings at Fannie and Freddie Continue to Run Off

Fannie and Freddie held a combined $252 billion in Alt A and subprime mortgage assets at the end of June, down 18.3 percent from the second quarter of 2013.


August 15, 2014 - Inside FHA Lending

Private MIs, VA Overtake Faltering FHA Program

Weighed down by high premium costs and lender overlays, FHA lost more primary market share to private mortgage insurers and the Department of Veterans Affairs during the second quarter of 2014. Although June’s FHA endorsement numbers have not yet been released, the trend seen in April through May, along with Ginnie Mae securitization data, suggest that FHA business was up a modest 11.5 percent from the first quarter. But that increase provides no comfort to FHA, which saw its market share go down to 33.7 percent, a six-year low. From April to May, FHA forward endorsements rose by 2.4 percent to $10.61 billion. On a year-over-year basis, however, endorsements were down from $21.9 billion in May 2013, according to an Inside FHA Lending analysis of agency data. On the other hand, private MI companies reported a total of $44.19 billion of new insurance written (NIW) during the ... [2 charts]


August 15, 2014 - IMFnews

Pershing Square Sues U.S., GSEs for ‘Brazen’ Profit Sweep

The hedge fund contends the government’s actions short change investors and amounts to a de facto liquidation of Fannie Mae and Freddie Mac...


August 15, 2014 - IMFnews

What We’re Hearing: Maybe Ocwen Should Go Private / A $750 Million Stock Buyback for Ocwen? / Why It’s Hard to be Bullish on the Nonbank ‘Big Three’ / Who the Heck is Privlo? / No Wonder the MBA Likes Mel Watt

We only bring up the “going private” issue because class action attorneys have finally woken up to the fact that Ocwen’s shares have been clobbered over the past year...


August 15, 2014 - Inside MBS & ABS

GSE MBS Portfolios Continued Shrinking in 2Q14 Fueled by Bigger Declines in Non-Agency Holdings

Fannie Mae and Freddie Mac continued their conservatorship march toward smaller retained mortgage portfolios during the second quarter of 2014, with most of the focus on non-agency collateral, according to a new analysis by Inside MBS & ABS. The two government-sponsored enterprises ended June with a combined $872.7 billion in mortgage-related holdings, down 3.3 percent from the previous quarter. Compared to a year ago, their combined portfolio was down 19.7 percent. It was down 45.2 percent from the $1.592 trillion they held in the fourth quarter of 2008 shortly after the two were put in conservatorship. The biggest decline has been...[Includes one data chart]


August 15, 2014 - Inside MBS & ABS

SIFMA Bucks Industry Trend, Calls For Slow Increase of Fannie, Freddie MBS Guaranty Fees

The Federal Housing Finance Agency should act now to slowly increase Fannie Mae’s and Freddie Mac’s guaranty fees, according to the Securities Industry and Financial Markets Association. SIFMA’s tempered support of a proposed government-sponsored enterprise g-fee increase runs contrary to the position held by much of the rest of the industry – that now is not the time. “We encourage...


August 15, 2014 - Inside MBS & ABS

Trade Groups Raise Issues Related to GNMA’s Plan to Shift to Single MBS, Agree on Some, Differ on Others

Though mortgage securitizers, issuers, lenders and servicers support a proposal to consolidate Ginnie Mae’s two MBS program into a single security, certain specific issues appeared to divide them. In a recent joint letter to Ginnie Mae, the Securities Industry and Financial Markets Association and the Mortgage Bankers Association said many of their members agree on a number of the issues raised by the proposal, but in some cases disagree on the solutions. “It is clear that further discussion is warranted, and direct engagement with key stakeholders should be beneficial,” the trade groups suggested. Both industry groups were responding...


August 15, 2014 - Inside MBS & ABS

MBS Prices May Rise Further, Thanks to Concern About Economic Impact of the Ukraine ‘Situation’

MBS investors have been enjoying a nice little rally of late thanks to what analysts call “geopolitical” concerns, namely the conflicts in Ukraine and the Middle East. But how much further will bond prices rise and rates fall? It all depends on whom you ask. “We’ll see 2 percent on the long bond before 3 percent,” said Christopher Whalen, senior managing director of Kroll Bond Rating Agency. Over the past few weeks, MBS prices – based on the Fannie Mae 3.5 percent coupon – have neared...


August 15, 2014 - Inside MBS & ABS

Agencies Propose ‘Single Security’ for Fannie Mae, Freddie Mac TBA Issuance and Resecuritizations

The notion of a common pass-through MBS issued by Fannie Mae and Freddie Mac was formally put in play this week, as the Federal Housing Finance Agency solicited comment on a proposed “single security” for the two government-sponsored enterprises. The Mortgage Bankers Association has been pushing the concept for several years, and it made it onto the FHFA’s formal agenda for the GSEs in 2014. Proponents say it would improve liquidity in the market and level out Freddie’s pricing disadvantage. Under the FHFA proposal, the new common MBS would adopt...


August 15, 2014 - IMFnews

REITs Increased MBS Holdings During Second Quarter as Fed Pared Back its Presence

The mortgage REIT industry held $286.3 billion of MBS at the end of June, according to exclusive figures compiled by Inside MBS & ABS.


August 15, 2014 - IMFnews

SIFMA Bucks Industry Trend, Calls for Increase in Fannie/Freddie G-Fees

SIFMA's call for higher guaranty fees might sound like heresy in the mortgage industry, but the trade group clearly wants the non-agency market to revive.


August 14, 2014 - Inside Mortgage Finance

Fannie, Freddie Post $5.0 Billion Profit in 2Q14 As GSEs ‘Substantially Achieve’ Repurchase Goals

Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year as the two government-sponsored enterprises reported a significant downshift in repurchase activity. Through the first six months of the year, GSE profits were down nearly 81.7 percent from the first half of 2013. But Fannie and Freddie reaped huge profits in 2013 through hefty legal settlements, the capture of deferred tax assets and seller buybacks. “When you look back on 2013, our goal was...


August 14, 2014 - IMFnews

Short Takes: On the Other Hand, PHH Will Buy MSRs Too / Falling out of Love with FHA / Growth Good, Shrinkage Bad / Radian Declares a Measly Dividend / Hedge Fund Takes Big Position in Radian

Senator Investor Group now owns a 6.28 percent stake in Radian, a top ranked mortgage insurer.


August 14, 2014 - IMFnews

Non-QM Lending To Boom? Don’t Bet On It, Says Fannie Mae

One non-QM executive who competes with Impac said the company’s forecast likely will not come true. “Right now, this is a very limited market – and there are no securitizations,” he said.


August 14, 2014 - IMFnews

GSE Shareholder Group Wants FHFA to End Conservatorships Now

The Investors Unite chief said Watt has publicly acknowledged that he possesses the Congressional authority to end the GSE conservatorships under the Housing and Economic Recovery Act of 2008.


August 13, 2014 - IMFnews

Short Takes: Home Equity Lending Becoming Red Hot? / ICBA’s Fine Not-So-Fine with a Single GSE MBS / MSR Mark-Ups Slow / Yet Another Lender Launches a Builder Unit / Auction.com Hires LinkedIn Exec

Wells Fargo, the nation’s largest servicer, has assigned an 80 basis point value to its residential MSR portfolio, but the nation’s number-two servicer, JPMorgan Chase, has its MSRs booked at 106 bps…


August 13, 2014 - IMFnews

Mortgage Buyback Demands Have Peaked but Remain a Big Headache

“The government presumably feels emboldened from the decisions that it’s been getting, and we anticipate that those will continue in the near future,” one mortgage buyback expert said.


August 13, 2014 - IMFnews

When Will the ‘Single’ GSE MBS Be Ready? Answer: 18 Months at the Earliest

The CSP, formally known as Common Securitization Solutions LLC, does not have a chief executive office or chairman.


Poll

Home-equity lending is beginning to show new life. My company (pick one):

Plans to enter this market over the next 12 months.

25%

Is already making home equity loans and hopes to increase the offerings.

45%

Is in the market but don’t expect much growth.

15%

Is not making second liens and has no plans to do so.

15%

Housing Pulse