Fannie Mae

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

April 24, 2015 - Inside The GSEs

Treasury Official Dishes on GSE Profits, Capital Cushion and More

Treasury Counselor Michael Stegman said despite the inability to recapitalize, Fannie Mae and Freddie Mac, as well as the housing market in general, are better off under the current conservatorship plan. He pointed to lower bowering costs as one of the advantages. The Preferred Stock Purchase Agreement, in which the Treasury gets the bulk of the GSEs profits, has been a source of frustration for some. However, Stegman, speaking at a Financial Services Roundtable event in Washington last week, said he wanted to “correct the record.” “The dividends that Treasury receives are not a repayment for the capital support and backstop that Treasury has provided,” he said. “The fact is that the PSPAs provide tremendous value to the GSEs. Market participants continue to have confidence...

April 24, 2015 - Inside The GSEs

GSEs' Multifamily Market Decline Affects the Low-Income Segment

The GSEs have provided multifamily financing for more than two decades, but their dwindling role has some worried that it has adverse effects on the underserved and low-income segment of the multifamily market. Although the Federal Housing Finance Agency said it is working to slow the decline, an April brief by the Urban Institute pointed out that with the increasing demand and costs of renting, the agency may need to do more in maintaining or increasing the GSE role in multifamily. In the past 25 years, the dollar volume of GSE multifamily financing has grown from $4.5 billion in 1990 to more than $57 billion at the end of 2014. But recent declines show that Fannie’s and Freddie’s

April 24, 2015 - Inside The GSEs

Fannie Targest First-Time Buyers With New Education Program

Fannie Mae recently launched a new program to help first-time homebuyers purchase a home while alleviating any possible confusion surrounding the buying process. As part of the HomePath Ready Buyer Education Program, qualified buyers could receive up to three percent closing cost assistance once they complete an online education course. The class is an important component of the program, according to Fannie. “Purchasing your first home can be an overwhelming process,” said Fannie’s Jay Ryan, vice president of REO Sales. “We developed the HomePath Ready Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the homebuying process.”

April 24, 2015 - Inside The GSEs

CU Integrated Into Other Quality Control Tools

In an ongoing attempt to offer lenders more clarity and reduce buybacks, Fannie Mae has taken its new Collateral Underwriter program to the next phase and integrated it with other loan-processing systems. After introducing Collateral Underwriter in January, Fannie announced on April 20 that it incorporated the tool with Desktop Underwriter, an automated underwriting system, and Early Check, the company’s pre-delivery loan eligibility and data evaluation tool. The GSE said this will provide a better view of risk on a loan across multiple applications, allowing lenders to address potential issues prior to loan delivery. CU, Fannie’s proprietary appraisal analysis application that gives lenders access to analytics, public records and other data when...

April 24, 2015 - Inside The GSEs

Freddie Mac Gears Latest NPL Auction to Smaller Investors

Freddie Mac, announced this week its first non-performing loan auction this week that primarily caters to smaller investors. The Extended Timeline Pool Offering of deeply delinquent NPLs gives investors who may need more time to secure funds for bidding a longer timeframe to do so. The loans for sale, all based in Miami-Dade County, FL, have an aggregate unpaid principal balance of $35 million. Having smaller pool sizes and a longer marketing timeframe differentiates the EXPO initiative from Freddie’s standard pool auctions. “This is intended to provide smaller investors extra time to secure funds to participate in Freddie Mac NPL auctions,” said the GSE. Qualified buyers have until June 2, 2015, to bid on the loans and the...

April 24, 2015 - Inside The GSEs

GSEs Tout Benefit of PMIER Rules, MIs Say They Will Be Ready

The Federal Housing Finance Agency announced new changes to private mortgage insurer eligibility rules on April 17 and the GSEs said the revisions will play a role in helping to reduce the risk to taxpayers by making sure the MIs are financially and operationally strong. During the financial crisis, some MIs couldn’t fully pay their claims, resulting in losses to the GSEs and taxpayers. The FHFA hopes the revised requirements will help lessen the chances of falling back into the same boat should there be another crisis. United Guaranty, the highest-rated GSE-approved mortgage insurer, said PMIER revisions are “a critical and necessary step that will allow the entire mortgage insurance industry to move forward by incorporating lessons learned during the financial crisis.”

April 24, 2015 - Inside The GSEs

FHFA’s Modest Changes Have Little Effect on GSE Loans

The news that Fannie Mae and Freddie Mac won’t be changing their base guaranty fees and will no longer charge a 25 basis point “adverse market” fee hit late last week when the Federal Housing Finance Agency released its decision on the issue that many have speculated about for weeks.The adverse market fee was eliminated for all loans but loan-level pricing adjustments were raised for certain mortgages. The changes will become effective for all loans purchased by Fannie and Freddie beginning Sept. 1, 2015. The base guaranty fee announcement came as no surprise as most expected there wouldn’t be a change. “The FHFA finds no compelling economic reason to change the general level of fees,” the agency said.

April 24, 2015 - IMFnews

What We’re Hearing: Ocwen Decides to Keep its Ginnie MSRs / What Will a Borrower See When It Googles Ocwen’s Name? / Quicken Gets Hit in the Mouth With a Fastball / More Red Ink for Stewart Title

Grid Financial consultant Paul Hindman is a true believer in brokers as is Mat Ishbia of United Wholesale Mortgage.

April 24, 2015 - Inside MBS & ABS

Changes to GSE Guaranty Fees and LLPAs Yield A Big Fat Zero for the Jumbo MBS Market

Firms hoping that new guaranty fee and loan-level price adjustments promulgated by the Federal Housing Finance Agency might boost the jumbo MBS market were sorely disappointed when the final details were released by the agency late last week. One executive who works for a real estate investment trust that issues jumbos said it’s clear to him that Fannie Mae and Freddie Mac are continuing to “misprice” their g-fees. He would love...

April 23, 2015 - IMFnews

Treasury Responds to Sen. Grassley on PSPAs, Transparency of Conservatorship Decisions

Most of Sen. Grassley's inquiry focused on transparency and whether the president invoked executive privilege over some of the documents pertaining to the third amendment to the PSPAs...

April 23, 2015 - Inside Mortgage Finance

A Growing Concern for Fannie, Freddie and The FHFA: Lender-Paid Mortgage Insurance

With private mortgage insurance eligibility requirements now a done deal, the MI industry may have a new headache on its hands: concerns from Fannie Mae and Freddie Mac – and their regulator – about the discounting of lender-paid MI policies. Industry officials familiar with the LPMI issue have been telling Inside Mortgage Finance for weeks that the government-sponsored enterprises are taking a close look at the product. Although the Federal Housing Finance Agency declined to discuss LPMI, a spokesman for Freddie Mac offered...

April 23, 2015 - Inside Mortgage Finance

Private MIs Say They’re (Mostly) Ready for New GSE Eligibility Rules, Or They Will Be

The Federal Housing Finance Agency late last week announced a few changes to new private mortgage insurer eligibility rules that were first proposed in July 2014, and the private MI industry appears mostly ready for them. “The new PMIERs are really designed to promote the counterparty strength of private mortgage insurers. We feel like this will strengthen the industry,” said Gina Haly, Freddie Mac’s vice president in the mortgage insurance and risk transfer counterparty credit division. During the financial crisis, some MIs couldn’t fully pay...

April 23, 2015 - Inside Mortgage Finance

Modest Changes to GSE MBS Guaranty Pricing Likely To Have Little Impact on FHA, Jumbo Originations

The Federal Housing Finance Agency late last week directed Fannie Mae and Freddie Mac to stop charging the 25 basis point “adverse market” fee assessed on all loans since the financial crises, but most lower-risk loans won’t get any reduction in loan-level pricing adjustments. As expected, the FHFA did not make any changes to the “base” guaranty fees charged by the two government-sponsored enterprises. Current fees, on average, are at an “appropriate” level. “We are going to monitor this on an ongoing or quarterly basis and we’ll adjust based on market conditions,” said Sandra Thompson, FHFA’s deputy director. The regulator instructed...

April 23, 2015 - IMFnews

Agency MSRs: Nonbanks Continue to Steal Market Share From the Megabanks

Most of the slack is being taken up by nonbanks, which serviced $1.571 trillion of agency MBS at March 31.

April 22, 2015 - IMFnews

Interactive Mortgage Advisors Unveils Two New MSR Deals

On IMA’s other deal, the brokerage firm is offering $100 million per month of Fannie Mae/Freddie Mac “flow” product.

April 21, 2015 - IMFnews

Bank Sells $2 Billion Bond to a GSE in Deal Assisted by MIAC

The sale actually closed at yearend, although it was revealed in a press statement dated April 21.

April 21, 2015 - IMFnews

Are ‘Fast Servicers’ Impacting the TBA market? Nonbanks a Factor?

The Federal Reserve is seen as taking the brunt of nonbank servicer-induced prepayment risk on agency MBS.

April 20, 2015 - IMFnews

Short Takes: The Quicken Data Dump to DOJ / Dan Gilbert’s Growing Portfolio of Detroit Properties / Ocwen Gets Extension / ASPS Grants Options to Executives / BofA and IBM?

The lender says government investigators have conducted lengthy depositions with numerous Quicken leaders…

April 20, 2015 - IMFnews

PMIER Fallout: Genworth May Need $700MM of Additional Capital but Expects to be Compliant

In trading Monday, Genworth’s stock price was down slightly trading at $7.96. Its 52-week low is $6.75, its high $18.74.

April 17, 2015 - IMFnews

What We’re Hearing: Concern Over LPMI Discounting? / RoundPoint Still Hunting for a Suitor / A Book out on Seterus? / When Fannie Almost Bought Litton / loanDepot Claims It’s Among the Fastest

If Fannie Mae bought a servicing platform Congress, of course, would blow a gasket...

April 16, 2015 - IMFnews

GSE Refi Loans with PMI Spike 37 Percent in First Quarter 2015

The steadily declining average loan-to-value ratio on PMI-covered refinances reflects dwindling production in the HARP program.

April 15, 2015 - IMFnews

Treasury Point Man on GSE Reform Defends PSPAs

The remaining undrawn taxpayer commitment to the GSEs is $258.1 billion dollars, Stegman noted.

April 10, 2015 - Inside The GSEs

Former FDIC Chief Criticizes Treasury Sweep Decision

Conservatorship has left Fannie Mae and Freddie Mac in a state of flux, according to former Federal Deposit Insurance Corp. Chairman William Isaac, who recently criticized the federal government’s verdict to let the Treasury Department take the bulk of the GSEs profits. As anxiety continues to grow about the sustainable profitability of Fannie and Freddie, Isaac said there doesn’t appear to be light at the end of the tunnel. “We need to bring some fresh thought to this issue,” he said during a teleconference sponsored by Investors Unite last week. Although he said there has been very little movement on the issue within the past year. Isaacs said until a resolution is reached, “it’s very important that the government treat...

April 10, 2015 - Inside The GSEs

Fannie Jumps Into the NPL Auction Game: A $55 Billion Market?

Fannie Mae’s maiden voyage in the nonperforming loan auction market began on April 8 when it announced that it will be auctioning a pool of approximately 3,200 loans totaling $786 million in unpaid principal balance. Joy Cianci, Fannie Mae’s senior vice president for credit portfolio management, said the transaction will help Fannie reduce the number of seriously delinquent loans it owns and offer additional foreclosure prevention opportunities. It’s being marketed in conjunction with Bank of America Merrill Lynch, Credit Suisse and The Williams Capital Group. Fannie’s first voyage into the sale of non-performing loans is expected to be a kick-off to future NPL sales. “We plan to build these sales into a programmatic offering...

April 10, 2015 - Inside The GSEs

GSEs Release QC Measures Intended to Reduce Repurchases

Fannie Mae and Freddie Mac released quality control measures to their customers last week that they said will increase transparency and help lenders reduce the amount of problematic loans. Both GSEs are more open to repurchase alternatives and have witnessed a decrease in the number of deficient loans. “Mortgages today are certainly of the highest quality as validated by our QC reviews,” Freddie noted in the letter. Since 2013, the defect rate of a random sampling of performing loans has been 1.4 percent, its lowest, even as the level of QC files increased. Fannie said that the quality of originations has improved, resulting in fewer loans being deemed ineligible by the GSE. As of the end of 2014, 0.33 percent of the single-family loans....

April 10, 2015 - Inside The GSEs

Heavy Refinance Volume Buoys GSE MBS Business in 1Q15

Fannie Mae and Freddie Mac issued a robust $189.92 billion of single-family mortgage-backed securities during the first three months of 2015, according to a new Inside The GSEs analysis.Business in the GSEs’ core MBS guaranty program grew 5.9 percent from the fourth quarter of last year. The pace in early 2015 was up a hefty 47.0 percent from the same period last year, which was the weakest quarter in over a decade. Nonbank seller/servicers continued to gain market share. These companies accounted for 45.6 percent of GSE MBS issued in early 2015, and their total production was up 7.7 percent from the previous quarter. (Includes 2 exclusive charts).

April 10, 2015 - Inside Mortgage Trends

Fannie Mae Touts Benefits of eWarehouse Lending

As a new day of mortgage disclosure practices nears, courtesy of the integrated disclosure rule from the Consumer Financial Protection Bureau, a strong supporter of eClosings and eMortgages – Fannie Mae – is extending the concept. The government-sponsored enterprise is working on eWarehouse lending in conjunction with eNotes. First, the borrower executes the eNote on a digital closing platform. “The closing system applies a tamper-evident seal to the eNote,” Fannie said ...

April 10, 2015 - IMFnews

Heavy Refinance Volume Buoys GSE MBS Business in 1Q15

Fannie Mae and Freddie Mac issued a robust $189.92 billion of single-family mortgage-backed securities during the first three months of 2015, according to a new Inside The GSEs analysis.

April 9, 2015 - IMFnews

Fannie Announces First NPL Sale, Totals $786 Million

After much speculation, Fannie Mae announced on Wednesday its first ever auction of nonperforming loans to qualified bidders. It includes a pool of approximately 3,200 loans totaling $786 million in unpaid principal balance.

April 8, 2015 - IMFnews

Short Takes: Grassley Has Questions About GSE Sweep, Crapo Bill Targets CFPB Rules, Fed Watchers Await Minutes, Purchase Mortgage Apps Up

CAPITAL HILL REPORT: Shortly before the U.S. Congress vacated the nation’s capital for its spring recess, Sen. Mike Crapo, R-ID, introduced legislation that would require all rules from the Consumer Financial Protection Bureau be evaluated in the 10-year regulatory review process under the Economic Growth and Regulatory Paperwork Reduction Act, which seeks to identify rules that are unnecessary, outdated and overly burdensome. The Dodd-Frank Act already requires the CFPB to similarly review every major rulemaking…

April 8, 2015 - IMFnews

Fannie Mae and BofA: The Cold War (Except HARP) Continues

Despite the drought, a Fannie spokesman issued a statement saying, “Bank of America continues to be an important seller-servicer for Fannie Mae, including servicing a sizable book of loans that we own.”

April 7, 2015 - IMFnews

Short Takes: How Many Lenders are Offering LPMI? / Sell that House Now! / NPL Market Waiting for a Shot of Fannie / CFPB Publishes Secret Sauce on TRID / MB Gets new Mortgage Chief

Although Fannie Mae is poised to begin auctioning off some of its nonperforming mortgages, the market continues to be dominated by smaller deals.

April 3, 2015 - Inside FHA/VA Lending

Around the Industry

Fannie Mae Updates Reverse Mortgage Loan Servicing Manual. Fannie Mae has updated its reverse mortgage servicing manual with changes and clarifications to policies pertaining to Home Equity Conversion Mortgages. For HECMs, Fannie now requires servicers to place a real estate-owned hazard insurance policy upon completion of a foreclosure sale. It also outlined servicers’ responsibilities regarding the documentation and cancellation of REO hazard insurance claims; reimbursement of REO hazard insurance premiums; and remittance of insurance loss proceeds. The revised policy changes must be implemented no later than April 1, 2015. House Democrats Reintroduce Housing Finance Reform Bill. Democrats on the House Financial Services Committee have introduced legislation that would provide private and government risk-share coverage to all mortgages, create a ...

April 3, 2015 - IMFnews

What We’re Hearing: A Loosening of Credit? Not Really / How Big of an LLPA Cut? / PMIERs? / Ocwen Earnings on Indefinite Hold / High Turnover at NE Lender? / PennyMac Gets Financing from Citi / UWM Says Freddie 3 Percent Down Product Better Than FHA

As one Ocwen source told us: It’s on “indefinite” hold…

April 3, 2015 - Inside MBS & ABS

Prepayments Hit GSEs’ Risk-Sharing Deals a Little Harder than Expected

Some MBS investors and industry analysts were taken aback when the latest prepayment rates on the government-sponsored enterprises’ risk-transfer deals were reported last week. The spike in prepayments was due to low interest rates in January, with the risk-sharing deals more susceptible to prepayments than agency MBS overall due to the collateral included in them. Prepayment rates were particularly high on Freddie Mac Structured Agency Credit Risk transactions. Analysts at Barclays Capital said M1 tranches on STACR 2014-DN3 and STACR 2014-HQ1 experienced large pay-downs in March due to “seemingly high” prepayments. STACR 2014-DN3 M1 paid down by 18.0 percent in March and STACR 2014-HQ1 M1 paid down by 8.4 percent. “While the jump in prepayment speeds could be expected after the rates rally earlier this year, the magnitude of the jump may seem...

April 3, 2015 - Inside MBS & ABS

Fannie Working With Bank of America on Different Fronts But New MBS Isn’t Part of It, At Least Not Yet

At least three years have passed since Bank of America stopped selling new purchase-money loans into Fannie Mae securities, a drought that has benefitted at least one party: Freddie Mac. According to new figures compiled by Inside MBS & ABS, in the first quarter of 2015 BofA sold $9.57 billion of mortgages into Freddie securities, beating out Wells Fargo ($8.194 billion), which traditionally has ranked first in sales to both government-sponsored enterprises. Then again, there is...

April 3, 2015 - Inside MBS & ABS

Will a Young Nonbank Lender Called Angel Oak Break the Drought in Nonprime MBS Issuance?

A little known lender called Angel Oak Mortgage Solutions hopes to fund $540 million of product this year and generate the industry’s first nonprime non-agency MBS of the “new era” with financing provided by Nomura. According to industry officials who have viewed investor materials issued by the company – a copy of which was provided to Inside MBS & ABS – Nomura has even agreed to provide “gestation repo” warehouse credit to the privately held originator. One source who claims to have knowledge of the arrangement said...

April 3, 2015 - Inside MBS & ABS

Securitization Market Rebounded in 1Q15, Most Sectors See Solid Gains From Last Year

Mortgage and asset securitization started 2015 with improving issuance volume and a chance to reverse last year’s paltry output. A total of $335.1 billion of residential MBS and non-mortgage ABS were issued during the first three months of 2015, according to a new Inside MBS & ABS analysis. That was up 7.7 percent from the fourth quarter of 2014, and it was a big 34.3 percent jump from the first quarter of last year. The first quarter of 2014 was...[Includes two data charts]

April 3, 2015 - IMFnews

Mortgage and ABS Market Rebounded in First Quarter

Fannie Mae, Freddie Mac and Ginnie Mae securitized $151.1 billion of refi loans during the first quarter, a 34.8 percent increase from the end of 2014.

April 3, 2015 - IMFnews

Fannie Mae Unveils Concrete Plans to Sell Nonperforming Loans; BofA Product?

Fannie Mae indicated that this auction will be the kick-off to future sales.

April 2, 2015 - Inside Mortgage Finance

FHA Recaptures Few of Its Refinances; Cut in Annual Premium Could Help

The percentage of FHA borrowers refinancing their mortgage into another government loan has fallen through the floor the past two years, with all indications pointing to a rule change that prevents mortgage insurance from being cancelled over the life of the loan. Of course, increases in premiums haven’t helped either, but thanks to a January reduction in the annual FHA premium of 50 basis points, at least some of that business is coming back to the agency. “The life-of-the-loan issue is...

April 2, 2015 - Inside Mortgage Finance

Refinance Surge Lifts GSE Business in Early 2015, Freddie Regained Some Market Share

Business is booming at Fannie Mae and Freddie Mac thanks to a healthy surge in refinance activity, according to a new Inside Mortgage Finance analysis of mortgage-backed securities issued by the two government-sponsored enterprises during the first quarter of 2015. Fannie and Freddie issued a total of $189.92 billion of single-family MBS during the first three months of the year. That was up 5.9 percent from the fourth quarter of 2014, and it marked the biggest output for the GSEs since the third quarter of 2013. Early 2015 was leaps and bounds ahead of the pace set during the same period last year, which marked a 14-year low in mortgage production. All of the oomph came...[Includes three data charts]

April 2, 2015 - IMFnews

Short Takes: Fannie’s First NPL Sale Draws Near? / Former Subprime Executives Stage a Comeback / Golden First Settles with FHA for $36 Million / BofA Top Seller to Freddie

According to an informational circular on Angel Oak Mortgage Solutions, some of the top executives at the firm used to work for Southstar Funding in Sandy Spring, GA.

April 2, 2015 - IMFnews

Former FDIC Chief Isaac: No Capital for the GSEs is a Bad Idea

In years past, some have likened Fannie and Freddie to being giant thrift institutions...

April 2, 2015 - IMFnews

Thanks to Refis, A Sweet Issuance Quarter for Fannie and Freddie

Refinance loans accounted for over half (62.2 percent) of total GSE business during the first quarter...

April 1, 2015 - IMFnews

Short Takes: A Record Production Month for One Lender / Another LLPA Change From Fannie Mae / Trouble for Altisource Residential? / Updates Forecast / Former Fannie Chief Mudd Appears in Court

Former Fannie Mae CEO Daniel Mudd testified Tuesday in a civil trial over losses the GSE suffered on nonprime MBS...

April 1, 2015 - IMFnews

Lenders Feel Good About Loan Production This Year, Well Sort Of

According to a March forecast, Fannie Mae estimates that $1.239 trillion of residential loans will be funded this year.

April 1, 2015 - IMFnews

MIAC and The Prestwick Group Offering New Flow and Bulk MSR Deals

The Prestwick Group is selling a Fannie/Freddie $167 million bulk deal with a monthly flow component of $15 million to $20 million.

March 31, 2015 - IMFnews

Short Takes: Looser Credit, for Real? / When in Doubt, Sell Whole Loans / How Did 1Q15 Shape Up? / Nationstar Provides More Details on Stock Sale / First Key's New SFR Deal

Reliance recently was approved for credit by a Wall Street wholesale lender that does 10 percent down, no-mortgage insurance loans...

March 31, 2015 - IMFnews

High Credit Score Mortgages Continue to Dominate GSE Lending

Mid-range credit scores – from 700 to 739 – accounted for 21.3 percent of Fannie and Freddie business last year.


The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

It's a very big deal, but our company will limit OT pay or pay very little.
It’s sort of a big deal, but we have no plans to pay overtime pay at all.
We have no problem paying our LOs OT.
We’re still studying the case and have not yet decided what to do.

vote to see results
Housing Pulse