Fannie Mae

Browse articles from all of our Newsletters related to Fannie Mae.

July 28, 2016 - Inside Mortgage Finance

Democratic Platform Would Expand Foreclosure Prevention, Increase Access to Affordable Housing

The Democratic Party wants to expand programs to prevent foreclosure, increase access to affordable housing and preserve the 30-year fixed-rate mortgage, according to its recently released 2016 platform. “Whereas the Republican Presidential nominee rooted for the housing crisis, Democrats will continue to fight for those families who suffered the loss of their homes,” the document says. “We will help those who are working toward a path of financial stability and will put sustainable homeownership into the reach of more families.” Democrats want...

July 28, 2016 - Inside Mortgage Finance

Mortgage Originations Spurt to Three-Year High In Second Quarter; Some Report 50 Percent Jump

The mortgage-origination market roared to life during the second quarter of 2016 with an estimated $510 billion in new lending, according to an exclusive new Inside Mortgage Finance analysis and ranking. Nearly all lenders reported hefty increases in production – some 50 percent or more – compared to the first three months of the year. As a group, the top 25 lenders for the second quarter originated 31.7 percent more new loans than in the first three months of the year. The estimated $510 billion in originations during the most recent period was...[Includes two data tables]

July 26, 2016 - IMFnews

Short Takes: Ginnie Mae MSR Demand: Deadly Slow? / FHFA IG Says Agency Shirking Its Duty / Summer Foreclosure Rates Looking Good (for Consumers) / Prepayment Speeds Spike / A New Hire at NCB

The IG accused the FHFA of shirking its responsibility to effectively examine Fannie Mae and Freddie Mac...

July 26, 2016 - IMFnews

GOP Lawmakers Request Outside Review of the FHFA Inspector General

Sen. Grassley pointed out that production decreased after Wertheimer’s tenure began in September 2014 with just three audit reports produced in 2015.

July 26, 2016 - IMFnews

Bulk MSR Sales Heated Up in 2Q16 Along with Surge in ‘Co-Issuance’ Deals

Some banks nearly tripled their bulk MSR acquisitions in 2Q16. SunTrust, for example, bought $7.41 billion of GSE servicing during the period, making it the third most active buyer in the market.

July 25, 2016 - IMFnews

IMA, Phoenix Capital Out With Bulk MSR Portfolios

Bids on both packages are due later in the week.

July 22, 2016 - Inside The GSEs

FHFA Denying Access to GSE Corporate Records

The Federal Housing Finance Agency is seeking to prevent GSE shareholder and director of Investors Unite, Tim Pagliara, from inspecting the corporate records of Fannie Mae and Freddie Mac. Pagliara filed a lawsuit in state courts in March hoping to gain access, as an individual stockholder, to the GSEs’ records to determine the circumstances surrounding the sweep. Fannie, incorporated in Delaware, and Freddie, incorporated in Virginia, both denied his request to review the records earlier this year. Pagliara then argued that his rights as a shareholder were denied for “no legitimate basis.” This week, the FHFA filed a motion to substitute itself for Pagliara and remove...

July 22, 2016 - Inside The GSEs

IU Poll Says Voters Want More Housing Access, Help from GSEs

Most voters are not happy with housing and mortgage access and favor more government intervention, according to a national housing poll of 1000 likely voters released last week by Investors Unite. More than half of those familiar with Fannie Mae Freddie Mac, 55 percent, had a favorable view of the mortgage giants. The survey was done in late June by Douglas Schoen, founder of Schoen Consulting,a pollster and democratic campaign consultant. It included views on homeownership, housing policies and the GSEs. He said the desire for policy change is “widespread and urgent.”

July 22, 2016 - Inside The GSEs

Low-Downpayment Programs Quietly Returning to Market

A growing number of lenders are partnering with Fannie Mae and Freddie Mac to offer low downpayment products requiring as little as 1 to 3 percent down. Many were announced without much fanfare and this has created a quiet comeback of sorts, according to Deutsche Bank.So far, seven lenders, including three large traditional banks, have introduced programs this year. Although the GSEs cap their high loan-to-value products at 97 percent, some lenders step in and subsidize the extra funds needed to make up the difference to help cash-strapped borrowers. The GSEs began offering their 97 percent LTV programs in late 2014 after they phased it out several years earlier.

July 22, 2016 - Inside The GSEs

FHFA's Principal-Reduction Map Shows FL, NJ Most Eligible States

Last week, the Federal Housing Finance Agency released a map highlighting eligible borrower locations for its principal-reduction program and instructed servicers to begin soliciting borrowers. The interactive map highlights where the most eligible borrowers are located for its new principal reduction option for loan modifications. The number of borrowers eligible to take advantage of the program has declined some. When it was announced in April, the FHFA estimated that 33,622 borrowers would be eligible, but it has since lowered that estimate to 30,000. The FHFA attributes the reduction to a “continuously evolving housing market” that may have improved in some areas.

July 22, 2016 - Inside The GSEs

Trade Groups, Congress Seek to Squash URLA Language Question

Trade groups and a long list of Congressmen are crying foul and urging the Federal Housing Finance Agency to not include a question asking borrowers’ language preference on its new Uniform Residential Loan Application. The FHFA, along with Fannie Mae and Freddie Mac, are considering adding the question as a last- minute addition to the URLA. However, in June, nine trade groups, including the American Bankers Association, Consumer Mortgage Coalition and Mortgage Bankers Association, wrote FHFA Director Mel Watt to voice their concerns, many of which focused on compliance and discrimination issues. They argued that a language preference question requires lenders to ask borrowers sensitive questions before...

July 22, 2016 - Inside The GSEs

FHFA, GSE Concerns with PACE Loans Continue to Loom

The Federal Housing Finance Agency remains resistant to taking on Property-Assessed Clean Energy loans despite this week’s announcement that the FHA will allow PACE loans. PACE programs provide financing for home energy improvements and water conservation, repaid through an assessment added to the property’s tax bill. FHA’s new guidance addresses state programs where the PACE obligation is treated like a property tax with priority over an FHA mortgage lien.However, like other mortgage industry critics of PACE loans, FHFA Director Mel Watt, said he continues to have “serious concerns” with how PACE programs are financed.

July 22, 2016 - Inside The GSEs

GOP Platform Released, Seeks to Limit Fed Involvement in Housing

This week, the Republicans adopted their official platform and called the GSE conservatorship a “corrupt” way of doing business. The GOP said the Great Recession devastated the housing market and caused taxpayers to pay billions of dollars to rescue Fannie Mae and Freddie Mac. They blame Democrats in Congress and the Obama administration for preventing efforts to reform the GSEs since they’ve been in conservatorship. “Their corrupt business model lets shareholders and executives reap huge profits while the taxpayers cover all loses,” the platform said. While vague in taking a stance on what should be done with Fannie and Freddie, the platform simply stated that the utility of both agencies should be “reconsidered.”

July 22, 2016 - Inside The GSEs

Nonbanks Continue Gaining Market Share in Servicing

Large depository institutions continued to let their servicing portfolios of loans pooled in Fannie Mae and Freddie Mac mortgage-backed securities slowly decline in the second quarter of 2016. A new Inside The GSEs analysis shows that banks, thrifts and credit unions still accounted for the lion’s share of GSE MBS servicing at the end of June. Depositories serviced $2.778 trillion of Fannie and Freddie single-family loans tied to MBS, or 66.6 percent of the total market. But that was down 0.9 percent from the previous quarter during a period when the total servicing of GSE single-family MBS edged slightly higher. Nonbanks, however, .... [includes two charts]

July 22, 2016 - Inside MBS & ABS

Agency Servicers of High-Coupon Mortgages - 2Q16

July 22, 2016 - Inside MBS & ABS

Lenders Quietly Introducing Low-Downpayment Programs to Help Cash-Strapped Buyers

Mortgages that allow buyers to make low downpayments are making a quiet comeback, according to a recent analysis from Deutsche Bank. But do they have the staying power? So far, seven lenders have partnered with Fannie Mae and Freddie Mac in special programs to offer loans requiring anywhere from no money down to 3 percent down. Although the government-sponsored enterprises cap their high loan-to-value product at 97 percent, some lenders step in and subsidize the extra funds needed to make up the difference. The GSEs began...

July 22, 2016 - Inside MBS & ABS

Republican Platform 2016 Talks of Reduced Government Role, Ending Mandates

The Republican platform, released this week during the Republican National Convention, would scale back the government’s role in housing and make borrowers and lenders more responsible. But it offered a somewhat vague prescription for what to do with Fannie Mae and Freddie Mac. “Our goal is to advance responsible homeownership while guarding against the abuses that led to the housing collapse,” the platform states. The GOP said housing reform should include clear underwriting standards and guidelines on predatory and acceptable lending practices – standards that are arguably at the core of the Dodd-Frank Act that’s roundly criticized by the party. Republicans blamed...

July 21, 2016 - Inside Mortgage Finance

State Court Ruling Sets Precedent Against Servicers’ Practice of Changing Locks Before Foreclosure

A recent ruling by the Washington State Supreme Court goes against servicers’ practice of changing the lock on a property before a foreclosure. While such practices are generally allowed under mortgage contracts and have been approved by other states, the Washington state court ruling is favorable to 3,600 borrowers in a class-action lawsuit and could cause further issues for servicers. Laura Jordan v. Nationstar Mortgage centered on Nationstar’s actions after the borrower defaulted on her mortgage. A vendor acting on behalf of Nationstar inspected the property, deemed it to be vacant and changed the lock on the front door. The vendor also left a lockbox on the door with the key to the new lock and the borrower was provided access to the key. Jordan represents...

July 21, 2016 - Inside Mortgage Finance

Realtors Say FHA Loans and GSE Low-Downpayment Programs Seen as Readily Available for Homebuyers

While some banks have reduced their FHA lending in recent years and alternatives from the government-sponsored enterprises are still gaining traction, homebuyers still have access to low-downpayment mortgage programs, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. “Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys. The HousingPulse survey covering activity in June included...

July 21, 2016 - Inside Mortgage Finance

Nonbanks Continue Growing Their Share of Agency Servicing Market in 2Q16, Ginnie Passes Freddie

Ginnie Mae edged past Freddie Mac in servicing outstanding on single-family mortgages tied to mortgage-backed securities during the second quarter of 2016, according to a new ranking and analysis by Inside Mortgage Finance. MBS disclosure reports show the supply of Ginnie mortgage servicing rights grew 2.1 percent during the second quarter, climbing to $1.576 trillion, excluding multifamily and reverse mortgage MBS. The supply of Freddie single-family servicing edged up just 0.4 percent from March, reaching $1.558 trillion and slipping to third in the agency MSR market. Fannie Mae single-family MSR servicing declined...[Includes two data tables]

July 21, 2016 - IMFnews

Nonbank Servicers Continue to Gain Market Share in Agency MSR Market in Second Quarter

Nonbanks serviced $2.155 trillion of agency MSR as of the end of June, a 3.4 percent increase in three months.

July 20, 2016 - IMFnews

GSEs Make Adjustment to Low-Downpayment Programs to Simplify Process

Fanie Mae made changes to its HomeReady program and Freddie Mac adjusted its Home Possible program.

July 19, 2016 - IMFnews

Republican Platform Labels GSEs’ Business Model as ‘Corrupt’

“[The GSEs’] corrupt business model lets shareholders and executives reap huge profits while the taxpayers cover all losses,” according to the Republican platform.

July 18, 2016 - IMFnews

GSEs Raise Concerns About Flood Insurance Legislation Passed by House

The bill would expand flood insurance options by including private flood insurance and require the GSEs to accept any private flood insurance company a borrower chooses, as long as the company is financially sound.

July 15, 2016 - IMFnews

What We’re Hearing: The Mother of all MSR Write-downs? / Maybe It Won’t be So Bad / Worrying About Ginnie Mae ‘Stress Tests’ / And This Time Everyone is Invited to the Ginnie Summit / Will Trump Leave Ginnie Mae Alone? Will Hillary?

We don’t know who will lead the new administration, though for Ginnie’s sake, it’s likely that both Donald Trump and Hillary Clinton won’t mess with the agency or its charter. Right?

July 15, 2016 - Inside MBS & ABS

Jumbo Issuance Will Continue to be Minimal as Banks Seek More Economical Solutions, Despite Positive Housing Outlook

The outlook for mortgage and housing activity in 2016 is expected to stay positive, but prime jumbo issuance won’t necessarily benefit from those fundamentals, according to S&P Global Ratings. Overall, the positive housing market is not translating into an increase in issuance or securitization. In fact, S&P analysts on a webinar this week said that non-agency securitization has been relatively flat over the past few years. Prime jumbo issuance continues to experience a dry spell that will most likely continue into the second half of 2016, they said. “If you look at the loans being originated, they are being held...

July 15, 2016 - Inside MBS & ABS

Non-Agency MBS Market Faltered in Second Quarter, Stumbling To Lowest New Issuance Since End of 2013

The non-agency MBS market shriveled up and nearly blew away in the second quarter of 2016 as new issuance totaled only $6.96 billion, according to an Inside MBS & ABS analysis. New production tumbled 17.0 percent from the first quarter of the year, which failed to top the $10 billion mark in issuance. The second-quarter total was the lowest output since the end of 2013, when just $6.11 billion of new non-agency MBS was produced. While there was a stiff decline in re-securitization activity from the first quarter, scratch-and-dent securitizations of nonperforming, re-performing and other dinged-up assets increased...[Includes two data tables]

July 14, 2016 - Inside Mortgage Finance

New FHFA Map Pinpoints Location of Borrowers Eligible for Loan Reduction, Lowers Estimate

Florida and New Jersey lead the way in having the most borrowers who are likely eligible to take advantage of the Federal Housing Finance Agency’s principal modification program, according to a new map the agency released this week. The FHFA introduced the one-time loan modification program in April focusing on a highly targeted group of underwater borrowers. It is limited to Fannie Mae and Freddie Mac loans that were seriously delinquent as of March 31, had remaining loan amounts of less than $250,000, and unpaid debt, including arrearages, exceeding 115 percent of the current market value of the home. The interactive map focuses...

July 14, 2016 - Inside Mortgage Finance

Lawmakers, Industry Groups Inundate FHFA With Letters Voicing Housing Policy Concerns

A bipartisan group of senators is urging Federal Housing Finance Agency Director Mel Watt not to take any steps that could possibly lead to Fannie Mae and Freddie Mac being released from conservatorship. Their letter sent last week is one of several in the past two months that Watt has received from various groups reiterating their positions on housing finance reform. Senate Republicans Bob Corker (TN), Mike Crapo (ID) and Dean Heller (NV), along with Democrats Mark Warner (VA), Heidi Heitkamp (ND) and Jon Tester (MT), emphasized the need for comprehensive reform legislation over “any unilateral action” by the administration. “That is why Congress included a provision in the 2016 omnibus legislation which restricted the release of Treasury’s shares in the government-sponsored enterprises,” they wrote. “The passage of this provision reasserted the desire of Congress to have a say in determining the fate of Fannie and Freddie.” But the lawmakers acknowledged...

July 14, 2016 - Inside Mortgage Finance

Flow of Private MI Loans Into Fannie/Freddie Market Up Sharply in 2Q16, But FHA/VA Markets Also Surged

Fannie Mae and Freddie Mac securitized $58.61 billion of single-family home loans that carried private mortgage insurance during the second quarter of 2016, a solid 33.0 percent increase over the first three months of the year, according to a new ranking and analysis by Inside Mortgage Finance. The boost in private MI business was slightly stronger than the 26.2 percent increase in overall single-family mortgage-backed securities issuance for the two government-sponsored enterprises during the same period. Overall, the biggest increase in GSE business during the second quarter was...[Includes two data tables]

July 14, 2016 - IMFnews

Short Takes: GOP ‘Platform’ Calls for the Plug to be Pulled on Fannie & Freddie / But IU Poll Finds Voters Have Soft Spot for the GSEs / Caliber Home Loans Major Player in New Freddie MBS / Fitch on MSR Risks

The GOP convention starts in a few days and the party of Lincoln and Roosevelt (Teddy) has its daggers pointed toward Fannie Mae and Freddie Mac. Bully!

July 14, 2016 - IMFnews

Fannie/Freddie MI Loans Spiked 33 Percent in Second Quarter

In the private MI segment, the biggest gain in percentage terms was in refinance loans…

July 13, 2016 - IMFnews

Short Takes: FHFA’s Watt Finally Answers the Big Dogs / Mortgage Layoffs at Bank of America / UWM Rolls Out 1 Percent Down Option / Housing Finance an Issue in Donald v. Hillary?

With the presidential election underway, many Americans are beginning to analyze and critique the candidate’s various policies – including their views on housing and finance.

July 13, 2016 - IMFnews

So, Who Will Cut Pricing First? FHA or the FHFA?

One mortgage insurance lobbyist added: “Fannie and Freddie really don’t want to cut fees. It would hurt their earnings. It’s hard to imagine them doing anything right now that would reduce revenues.”

July 12, 2016 - IMFnews

Broker Group Says ‘Hidden’ LLPAs, G-Fees Should be Disclosed to the Borrower

Should the industry be concerned if the borrower finds out about LLPAs?

July 11, 2016 - Inside the CFPB

Life Under TRID: Broker Group Wants G-Fee, LLPA Clarification to TRID Rule

A mortgage industry group wants to turn the TRID disclosure tables back on the regulators and reveal to homebuyers all the fees – including those imposed by the government – they have to pay for their home purchases, and not just those generated by the industry. The mortgage broker organization known as NAMB – The Association of Mortgage Professionals wants the CFPB and the Federal Housing Finance Agency to further clarify the TILA/RESPA Integrated Disclosure Rule by including a new line item that clearly states the “hidden” guarantee-fees and loan- level price adjustments from Fannie Mae and Freddie Mac. [However, it should be noted that the FHFA has no authorities under the Truth in Lending Act nor the Real Estate Settlement Procedures Act.] ...

July 11, 2016 - IMFnews

Six Senators, Including Corker and Warner, Advise FHFA’s Watt Against ‘Release’ of the GSEs

Recently, several trade groups and community organizations have called on Watt to allow Fannie and Freddie to rebuild their capital buffers ...

July 11, 2016 - IMFnews

Red-Hot California Market Gave a Boost to GSE Jumbo, Broker Share in 2Q16

The surge in California business helped boost the national broker share to 12.5 percent of GSE volume during the second quarter…

July 8, 2016 - Inside The GSEs

GSE Roundup

Freddie Prices $950 Million Multifamily K-Deal. Freddie Mac recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly seven-year terms. The GSE expects to issue nearly $950 million in K-722 Certificates. Borrower Alleges Unfair Post-Bankruptcy Inquiry. A borrower recently filed a lawsuit seeking class-action status against Fannie Mae related to an inquiry made into his credit file after his bankruptcy process was completed. Some attorneys said the case hints at a new type of lawsuit on the horizon stemming from the Fair Credit Reporting Act. The former borrower alleges that the GSE made unauthorized inquiries into his...

July 8, 2016 - Inside The GSEs

HomeReady, Home Possible Make Changes to Simplify Process

The GSEs simplified their low downpayment mortgage programs and announced updates in their selling guides late last week. The formula to determine a borrower’s eligibility by income limits is the first change aimed at making the application process for Fannie’s HomeReady program easier. “We are simplifying the way that income limits are applied by establishing a single area median income limit of 100 percent,” said Fannie. This is a change from the previous limit, in which the total annual qualifying income could not exceed 80 percent or 100 percent of the area median income, depending on where the home was located.

July 8, 2016 - Inside The GSEs

DeMarco's Reform Plan Says Turn GSEs into Insurance Companies

Former Federal Housing Finance Agency Director Ed DeMarco said the GSEs should operate as lender-owned entities that sell insurance against borrower defaults. DeMarco, along with Michael Bright, director of the Milken Institute’s Center for Financial Markets, published the housing reform plan last week. They said a long-term housing finance decision is needed. “Meaningful reform must be achieved, the vast majority of policymakers say, yet the decade anniversary of the conservatorships of Fannie Mae and Freddie Mac looms,” they said. “The FHFA was never envisioned as the permanent manager of the enterprises.” DeMarco and Blight suggest turning the GSEs into mutual insurance companies. In this scenario...

July 8, 2016 - Inside The GSEs

First NPL Sales Report Details Top Buyers and Sales Outcomes

Fannie Mae and Freddie Mac have sold 41,649 nonperforming loans through May 2016, according to the Federal Housing Finance Agency’s inaugural report on nonperforming loan sales and borrower outcomes. The report, released last week, is the first of two reports the FHFA plans to publish each year highlighting NPL sales activities. The loans had an aggregate unpaid principal balance of $8.5 billion and were delinquent 3.4 years on average. Freddie led the NPL sales market for the GSEs having sold 26,436 delinquent loans. Fannie was a distant second at 15,213. The average loan-to-value ratio was 98 percent. LSF9 Mortgage Holdings and Pretium Mortgage Credit Partners were the top...

July 8, 2016 - Inside The GSEs

Supreme Court Agrees to Hear Fannie Foreclosure Case

In a rare decision, the U.S. Supreme Court last week agreed to hear oral arguments pertaining to an ongoing Fannie Mae foreclosure case dating back to 2002. The case, Crystal Monique Lightfoot v. Fannie Mae, Cendant Mortgage Corp., is based on whether individual homeowners have the right to sue the GSE in the state courts after being wrongly foreclosed on by Fannie. Two homeowners from California involved in a mortgage dispute originally sued Fannie in state court back in 2002. But Fannie said the case should automatically fall under federal jurisdiction and be moved to the U.S. District Court of the Central District of California.

July 8, 2016 - Inside The GSEs

Senators Urge Watt to Prevent Fannie and Freddie Release

Sen. Bob Corker, R-TN, and Mark Warner, D-VA, wrote Federal Housing Finance Agency Director Mel Watt urging him to avoid taking steps that would lead to the GSEs’ release from conservatorship without comprehensive reform. The letter, sent on July 7, argued that doing so would perpetuate the pre-crisis practice of pubic losses and private gains. Senator Mike Crapo, R-ID, Heidi Heitkamp, D-ND, Dean Heller R-NV, and Jon Tester, D-MT, also coauthored the letter. They agree that an overall change to the existing structure needs to take place, but warned that it should only come through housing finance reform legislation and not any unilateral action by the administration.

July 8, 2016 - Inside The GSEs

GSE Business Up Sharply in 2Q, Freddie Share Dips

Fannie Mae and Freddie Mac both saw substantial increases in single-family volume during the second quarter, aided in part by nonbank sellers scouring for refinance business. But Fannie enjoyed bigger gains, while Freddie’s share of the two-horse GSE market slipped to 39.5 percent. Freddie’s share has hovered above 40 percent for the past two years, and it was 40.2 percent for the first six months of the year, but the GSE has to prop up its share by charging lower guarantee fees and through other means. In 2016, Freddie has been getting a smaller share of some sellers’ business than it got in the first half of last year. [includes two data charts]

July 8, 2016 - IMFnews

What We’re Hearing: What’s $465 Billion Among Friends? / How Much More Business will Wells Fargo and JPM Cede to the Nonbanks? / Ocwen, Ocwen, Ocwen / Will the FHFA Hold a ‘Liquidity Summit’ on Nonbanks Too? / Higher GSE Capital Minimums?

Recently, rumors were making the rounds in Washington that Fannie and Freddie might be pondering an increase in their net worth minimums for seller/servicers...

July 8, 2016 - IMFnews

FHFA Vows to Keep Tight Lid on Fannie/Freddie Homogeneity

According to the FHFA, both GSEs already have extensive internal procedures for vetting any business change that could affect prepay speeds…

July 8, 2016 - IMFnews

FHFA Issues Update on Common MBS and Platform; Project Appears to be On Track but ‘Key Achievements’ May Change

The eventual goal of the project is to have the GSEs issue fully interchangeable securities.

July 8, 2016 - Inside MBS & ABS

FHFA Vows to Keep a Tight Lid on Fannie/Freddie Homogeneity, Adds Details to Single Security Timeline

The Federal Housing Finance Agency this week detailed its efforts to make sure Fannie Mae and Freddie Mac policies and practices are consistent enough to keep prepayments speeds on their to-be-announced securities essentially the same. Prepay speeds for the two government-sponsored enterprises have moved significantly closer as more of their products and program requirements have been standardized, the FHFA said in an update on its single security initiative. Keeping them that way is seen as critical to the success of the program, in which Fannie and Freddie TBA MBS will be fully fungible – and can even be combined in so-called second-tier securitizations. Some industry interests have urged...

July 8, 2016 - Inside MBS & ABS

Agency MBS Production Ramped Up Sharply in Second Quarter Despite Lackluster Finish in June

Mortgage lenders delivered big increases in purchase mortgages and refinance loans to Fannie Mae, Freddie Mac and Ginnie Mae during the second quarter of 2016, according to a new analysis and ranking by Inside MBS & ABS. The agencies securitized $100.05 billion of purchase mortgages and $118.24 billion of refinance loans during the second quarter, up 37.3 percent and 31.1 percent, respectively, from the first three months of the year. That brought total agency issuance of single-family MBS to $612.38 billion for the first six months of 2016, putting the market on target to match last year’s $1.261 trillion in production. Although second-quarter volume was a strong rebound from the first quarter, momentum seemed...[Includes two data tables]


The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.
Better by 11% to 25%.
Off the charts better. Applications are great now.
Worse than 1H, but not by much.
A lot worse. But not sure on the damage.

vote to see results
Housing Pulse