Fannie Mae

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

January 28, 2015 - IMFnews

Short Takes: GSE Principal Reduction Rears Its Ugly Head Again / GOP Continues Close Scrutiny of the CFPB / Mr. Cordray, Stop Tearing Down Those Walls / IMA Selling Ginnie Servicing / S&P May Settle for $1.37 Billion

According to the IMA offering circular, the seller is a “Southwest, independent mortgage banking entity with strong financials and a highly experienced senior management team.”

January 28, 2015 - IMFnews

Friday Release of Seller/Servicer Eligibility Guidelines from FHFA Delayed?

It’s unclear what exactly will be addressed in these new standards, though capital requirements for nonbank servicers is said to be a key part of it.

January 28, 2015 - IMFnews

FHFA Chief Defends Agency’s Work on the Common Securitization Platform

“The industry seems to be cut out of some of the development of the securitization platform,” said Rep. Scott Garrett, R-NJ...

January 27, 2015 - IMFnews

Short Takes: Rep. Hensarling Cites ‘Fables’ Told by the Left / Some Background on the Affordable Housing Trust Funds / Did the Government Violate the Law Regarding the GSE Conservatorships?

"Contrary to the fable told by the left, the root cause of the financial crisis was not deregulation but dumb regulation," said House Financial Services Committee chairman Jeb Hensarling, R-TX.

January 27, 2015 - IMFnews

FHFA Will Make G-Fee Announcement by the End of March

The FHFA is still evaluating input regarding g-fees and but Watt has no idea if they will be reduced, increased or kept at their current levels.

January 26, 2015 - IMFnews

Short Takes: Titan Says: Give Us Your Rejects / Ocwen Rising / UWM Rolls Out LOS Platform / DocMagic Keeps Software Developers Happy / Leon Loves Altisource?

Thanks to its settlement with California regulators, Ocwen's share price is on the rise. But for how long?

January 26, 2015 - IMFnews

Phoenix Selling $4.3 Billion of Agency and Ginnie Servicing Rights

Declining interest rates don't appear to have affected the servicing auction market much.

January 23, 2015 - Inside FHA Lending

FHA Likely to Reclaim Share with Premium Cut

The half-percent annual premium reduction the FHA announced recently will likely enable the agency to reclaim the high loan-to-value segment of the mortgage market from Fannie Mae and Freddie Mac, according to analysts. Speaking with some originators that have been looking at the best way to securitize high LTV loans, Deustche Bank securities analysts said the lower FHA annual premium would put pressure on the government-sponsored enterprises to lower the cost of their guarantees. “The grapevine has anticipated for months that [g-fees] have little chance of going up and more chance of going down,” the analysts said. “But the specific risk triggered by the FHA move is that the cost of credit will now drop for high-LTV conventional borrowers.” Even before the FHA policy shift, private mortgage insurers have been pressuring the Federal Housing Finance Agency to ...

January 22, 2015 - Inside Mortgage Finance

First-Time Homebuyers Account for 43 Percent of Agency Purchase Mortgages in 2014, Wells Dominates

First-time homebuyers accounted for close to half of all purchase mortgages in the agency market in 2014, according to a new ranking and analysis by Inside Mortgage Finance. Activity in the sector is also projected to increase, helped by low interest rates, a reduction in FHA premium and the government-sponsored enterprises’ low-downpayment programs. Some $224.35 billion in mortgages to first-time homebuyers were included in agency mortgage-backed securities issued in 2014. The loans accounted for 43.3 percent of all purchase mortgages included in agency MBS during the year. Wells Fargo had...[Includes two data charts]

January 21, 2015 - IMFnews

Nationstar Closes on $8.5 Billion MSR Deal from ‘Top Four’ Servicer

Is Ocwen the seller of the MSRs?

January 21, 2015 - IMFnews

Nonbanks See GSE Market Share Climb to 44.8 Percent; Freedom Stands Out

Still, the four super-sized U.S. banks – those with more than $1 trillion in assets – continue to rank in the top five GSE sellers.

January 20, 2015 - IMFnews

FHFA PMIER Rule Could be Accompanied by LLPA Announcement

“It’s hard to believe the FHFA will release the PMIER rules without doing something on LLPAs,” said one official.

January 20, 2015 - IMFnews

Fannie Mae’s New Appraisal Product Causing Anxiety

Fannie's "Collateral Underwriter" will provide up to 20 comparables and appraisers will have to defend the comps they use...

January 20, 2015 - IMFnews

Mortgage Brokers Staged Comeback in 4Q14 with GSE Business

Meanwhile, Fannie Mae and Freddie Mac continued to get less of their business from their five biggest customers.

January 16, 2015 - Inside The GSEs

GSE Roundup

FNMA SVC-2015-01. Jan. 14, 2015. Fannie announced it has incorporated updates on compensatory fees and the MyCity program into its servicing guide. FNMA SVC-2015-02. Jan. 14, 2015. Fannie amended policies related to deferred payment obligations and repurchase prices or make-whole payments, as well as calculation of indemnification claims for loss of mortgage insurance benefits. The new requirements relate to non-bifurcated mortgages and insurer deferred payment obligations. For loans subject to a repurchase demand or make-whole payment for breach of selling reps and warranties, the servicer must remit the full amount, the notice makes clear. ...

January 16, 2015 - Inside The GSEs

Critics Oppose Using GSE Revenue To Fund Affordable Housing

Although the Federal Housing Finance Agency’s interim final rule is about prohibiting Fannie Mae and Freddie Mac from passing on the cost of Housing Trust Fund allocations to lenders, critics used the comment period to lambast the FHFA for allowing the allocations in the first place. “I don’t believe a company that is 100 percent shareholder-owned should give money to a charity before paying shareholders a dividend,” said Joe Johnson, affiliation undisclosed. “If Fannie and Freddie were released from conservatorship and were able to keep their own profits, then it would be fine to use them to fund the affordable housing fund.” Chris Roberts, affiliation also unknown, believes the FHFA’s action is a clear violation of the mandate to place ...

January 16, 2015 - Inside The GSEs

Will Fannie’s New Appraisal App Raise Costs, Bog Down Closings?

Appraisers and real estate agents are anxiously eyeing Jan. 26, the day Fannie Mae rolls out its “dreaded” Collateral Underwriter system, an automated risk assessment of appraisals that returns a risk score, flags and messages to the submitting lender. Reports that CU will drive up appraisal costs and slow closings are spreading fear among appraisers and real estate agents despite Fannie’s assurances to the contrary. With CU, lenders can return and challenge appraisals and demand changes to avoid any potential repurchase demand, according to a Connecticut-based residential mortgage specialist, who requested anonymity. “CU will provide up to 20 comparables, and appraisers will have to defend the comps that they use,” she explained. “You’re looking at adding a week or two ...

January 16, 2015 - Inside The GSEs

Fannie Looking at Improving ‘As Soon As Pooled’ Program

Fannie Mae is looking to improve the efficiencies and systems that drive its “As Soon As Pooled” program, the secondary market giant confirmed to Inside The GSEs. A spokesman for Fannie said no major changes are planned, especially regarding eligibility requirements, which is good news for the small to medium-sized lenders that use it. “ASAP is something we have been looking at,” he said. “The focus is on how we can make it better. But I can’t offer you any timetables.” ASAP is essentially an early delivery program. It allows lenders to fund loans closer to origination – up to 60 days before they are delivered to Fannie.For nonbank lenders that use warehouse lines of credit, the cost savings can ...

January 16, 2015 - Inside The GSEs

White House Talks Up GSE Reform, Lawmakers Show Little Interest

The subject of cutting FHA premiums sucked up most of the oxygen in the room when President Barack Obama spoke about housing issues last week in Phoenix. However, the president also discussed the fate of Fannie Mae and Freddie Mac; he and the White House reiterated some core principles for GSE reform the president would like to see taken up in the 114th Congress. Although it is still early, the initial indications of interest from lawmakers were less than inspiring. “The president continues to strongly support long-term housing finance reform through legislation that requires private capital to take the risks and rewards in mortgage lending while preserving broad and affordable access for all creditworthy families,” the White House said in ...

January 16, 2015 - Inside The GSEs

FHFA 2015 Scorecard Reflects Minor Shifts for Fannie, Freddie

The Federal Housing Finance Agency threw a few new wrinkles into its 2015 marching orders for Fannie Mae and Freddie Mac while sticking to major themes from 2014. Under the broad heading of maintaining credit availability, the two GSEs are expected to finish making improvements to their representation-and-warranty framework regarding loan originations, as well as continue clarifying their expectations regarding servicer performance and remedies. A new assignment for Fannie and Freddie is to assess the use of alternative credit scoring models, including operational and systems issues. The GSEs are expected to be ready to implement new duty-to-serve requirements when the FHFA implements a final rule. The Housing and Economic Recovery Act of 2008 directed the agency to issue regulations describing ...

January 16, 2015 - Inside The GSEs

Fannie, Freddie Winding Down Their Servicing Advances?

It appears that Fannie Mae and Freddie Mac may be slowly backing away from making large servicing advance facilities to certain nonbank customers. In a recent filing with the Securities and Exchange Commission, Green Tree Servicing said it amended an existing facility it had with Barclays Bank, increasing the line to $1.2 billion from just $100 million. A subsidiary of Walter Investment Management, Green Tree then turned around and repaid Fannie Mae some $765 million on the outstanding balance of an existing advance facility. It’s unclear how large Fannie and Freddie are in the advance market, but one servicing advisor had this to say on the topic: “Fannie is the largest lender of servicer advances in the business simply through ...

January 16, 2015 - Inside The GSEs

Nonbanks Continue Claiming Larger Share of GSE Business

If 2015 is anything like 2014, Fannie Mae and Freddie Mac will be getting over half of their single-family business from nonbanks by the end of the year. A new Inside The GSEs analysis of loan-level mortgage-backed securities data reveals that nonbanks accounted for 44.8 percent of Fannie/Freddie MBS issued in the fourth quarter of 2014. That was up from a nonbank share of 37.2 percent during the fourth quarter of 2013 and just 28.1 percent back in the first quarter of that year. As a group, nonbank sellers increased their total GSE sales by 2.9 percent from the third quarter to the fourth quarter, while the overall market declined by 2.1 percent. The biggest ... [with two exclusive charts] ...

January 16, 2015 - IMFnews

What We’re Hearing: Nonbanks Almost Equal to Banks in GSE MBS / More Mortgage Trouble for Cerberus / Meddling by Cerberus? / Hope for Ocwen? / The Failed GSE Duopoly? / Investor Unite a Bust?

The Federal Housing Finance Agency will unveil nonbank capital guidelines for servicers by mid-year. Also on the docket: Changes to loan level price adjustments..

January 16, 2015 - Inside MBS & ABS

SCOTUS Allows NCUA MBS Lawsuit to Proceed, JPMorgan Poised to Settle, Citigroup Gets Summons

The U.S. Supreme Court this week denied a petition by major banks to reject a lower court decision to allow a National Credit Union Administration MBS lawsuit to go forward. The SCOTUS chose not to hear the case, a lawsuit filed by the NCUA to recover damages suffered by five now-defunct federal credit unions as a result of investments in non-agency MBS sold by the banks. The suit is...

January 16, 2015 - Inside MBS & ABS

After a Booming Risk-Sharing Performance in 2014, Fannie/Freddie Goals Jump to $270 Billion for 2015

Fannie Mae and Freddie Mac had a stellar year for their risk-sharing transactions in 2014, selling off portions of the credit risk associated with $369.7 billion of MBS, greater than four times the $84.7 billion amount seen in the prior year, according to Fitch Ratings. Meanwhile, “performance of the transactions remains exceptionally clean,” analysts at Fitch said in a new report this week. The performance seen in 2013 was based...

January 15, 2015 - Inside Mortgage Finance

Analysts Debate Short- and Long-Term Effects of FHA’s Reduced Annual Premium on Private MI Providers

Now that the hurrahs and uproar over FHA’s reduced annual premiums have died down, analysts are having mixed views regarding its short- and long-term effects on private mortgage insurers. Some analysts predict FHA’s 50 basis-point reduction of the annual mortgage insurance premium charged on 30-year forward loans should have a modest impact on private MI business. The cut should benefit the lower FICO brackets – borrowers with credit scores of 679 and lower – a segment in which private MIs write little business, they suggest. “We believe...

January 15, 2015 - Inside Mortgage Finance

Final PMIER Rules From FHFA Could be Released Along With New Regulatory Language on LLPAs

The Federal Housing Finance Agency is expected to unveil final rules on Private Mortgage Insurer Eligibility Requirements (PMIERs) by the end of March, but there could be a surprise in the works. According to industry lobbyists and MI executives interviewed by Inside Mortgage Finance this week, the FHFA may publish the PMIER rules in tandem with new guidelines on loan-level price adjustments or LLPAs. “The MI industry is...

January 15, 2015 - Inside Mortgage Finance

Lender Buybacks Declined in 3Q14 as GSE Focus Turned to More Recent Production

Buybacks and indemnifications by Fannie Mae and Freddie Mac sellers fell sharply during the third quarter of 2014, according to an analysis by Inside Mortgage Trends, an affiliated newsletter. The two government-sponsored enterprises reported a total of just $543.1 million of repurchases and indemnifications of securitized mortgages in disclosures filed with the Securities and Exchange Commission. That was down a whopping 68.7 percent from the second quarter and was, by far, the lowest quarterly buyback total since the GSEs started disclosing such activity in early 2012. In fact, Fannie and Freddie withdrew...

January 15, 2015 - Inside Mortgage Finance

Mortgage Industry Fumes as CFPB Launches Interest Rate Tool to Help Homebuyers Shop for Mortgages

Almost half of the people buying a home these days do not shop around for their mortgages, according to a report issued this week by the Consumer Financial Protection Bureau. So to help remedy that, the bureau rolled out an online rate-checker tool – something that immediately set off a firestorm of opposition from mortgage brokers and originators. Rate Checker, part of a broader CFPB initiative called Owning a Home, is intended to help consumers understand what interest rates may be available to them, said CFPB Director Richard Cordray. “It incorporates information from lenders’ internal rate sheets, information they use to calculate what interest rate is available for a particular consumer. In other words, we are giving consumers direct access to the same type of information that the lenders themselves have. “By plugging in their credit score, their location and information about the loan they are seeking, they can see...

January 15, 2015 - Inside Mortgage Finance

GSE Securitization of Insured Mortgages Down Slightly in 4Q14; MI Penetration Rate Unchanged

Fannie Mae and Freddie Mac securitized $46.91 billion of home loans with private mortgage insurance during the fourth quarter of 2014, down 1.9 percent from the previous quarter, according to a new Inside Mortgage Finance analysis. The drop in private MI volume nearly mirrored the 2.1 percent decline in overall mortgage-backed securities production by the two government-sponsored enterprises over the same period. For all of 2014, the volume of private MI loans included in Fannie/Freddie MBS was down 22.5 percent, while total GSE securitization tumbled 45.4 percent from 2013. While MI-insured purchase mortgages declined by 7.0 percent from the third quarter, securitization of refinance loans with private MI jumped...[Includes two data charts]

January 15, 2015 - IMFnews

Short Takes: A Boom in Bank MSR Sales? / Ocwen’s Bonds Hold Up / Common Securitization Solutions’ ‘Black Budget’ / New Global Mortgage Chief for Citi / New Hires for

The FHFA, so far, has declined to provide a budget figure to the general public.

January 15, 2015 - IMFnews

GSE Securitization of Insured Mortgages Down Slightly in 4Q; HARP Ugly

The biggest decline in MI business during the fourth quarter came in loans refinanced through the Home Affordable Refinance Program.

January 13, 2015 - IMFnews

Home Equity Lending Expected to Increase

The two top banks increased their HEL holdings from midyear, and industry analysts expect home-equity lending to continue to increase in 2015.

January 9, 2015 - Inside Nonconforming Markets

GSE Deals Crowding Out Some Jumbo MBS

The risk-sharing transactions that Fannie Mae and Freddie Mac started offering in 2013 have drawn some investors away from buying new jumbo mortgage-backed securities, according to industry participants. The government-sponsored enterprises say the deals that share credit risk with investors help reduce taxpayer risk. However, the returns and risk profile of Freddie’s Structured Agency Credit Risk deals and Fannie’s Connecticut Avenue Securities deals have caused some investors to abandon jumbo MBS and instead invest in the GSEs’ offerings. Aaron Pas, a senior vice president of non-agency portfolio management at American Capital Mortgage Investment, said...

January 9, 2015 - IMFnews

What We’re Hearing: The FHA Fix Was in at the White House / 40-Plus Trade Groups Can’t be Wrong? / National Sales Director Out at Top-Ranked Retailer / A New Cash-Out Refi Loan That Might Surprise You / Do You Ever See the Customer Anymore?

The national director of retail sales at a top-20 ranked lender is out in the cold. Details to follow...

January 9, 2015 - Inside MBS & ABS

As GSEs Pull Back From Servicing Advance Lines With Nonbanks, More Deals Could Move to Wall Street

Fannie Mae – and perhaps, Freddie Mac – over the past few years have been quietly extending servicing advances to a handful of large nonbank specialty servicers, but it now appears that market might be shifting to Wall Street. Late last month, Green Tree Servicing signed a $1.2 billion servicing advance facility with Barclays Bank, a 12-fold increase from a previous agreement the nonbank had. Barclays is...

January 9, 2015 - Inside MBS & ABS

Ambac Whacks BofA With a New MBS Lawsuit, Credit Suisse’s and Wells Fargo’s MBS Woes Mount

Bank of America’s never-ending litigation woes spilled into 2015 as Ambac Assurance hit the bank with a new lawsuit related to toxic mortgages. Credit Suisse and Wells Fargo also welcomed the new year facing MBS lawsuits. According to analysts at Stone Fox Capital, an investment advisory firm, Ambac is claiming $600 million in losses, which arose from insuring approximately $1.7 billion in MBS transactions from 2005 to 2007. The MBS were issued by Countrywide Financial, which BofA acquired in 2008 and has been the principal cause of its legal headaches ever since. Ambac emerged...

January 9, 2015 - Inside MBS & ABS

Investors Continue to Bid Up the Price of Agency MBS; 105-Plus for a Fannie 3.5 Percent MBS

MBS investors this week continued to bid up the price of agency product in the wake of rock-bottom oil prices and economic fears about Asia, Europe and any oil-producing nation that relies too heavily on the energy sector. According to figures compiled by MBS Quoteline, at one point this week investors were paying 105.10 for Fannie Mae MBS with a coupon of 3.5 percent. Back in October the bid on the Fannie 3.5 was a mere 101.83. “Who would pay 105...

January 9, 2015 - Inside MBS & ABS

Asset Securitization Slowed in Fourth Quarter, 2014 Was Lowest Annual Output Since 2000

New MBS and ABS issuance last year was down 34.4 percent from 2013, largely due to a huge decline in agency single-family MBS production, according to a new Inside MBS & ABS analysis. A total of $1.145 trillion of residential MBS and non-mortgage ABS were issued during 2014, the lowest annual production volume since 2000. Last year got off to a very slow start, with just $517.0 billion in new issuance through the first six months of 2014, before gaining pace during the second half. Total issuance fell 4.8 percent from the third to the fourth quarter. Agency MBS remained...[Includes three data charts]

January 9, 2015 - IMFnews

Asset Securitization Plunge in 2014 – Blame it on Agency MBS

There was one piece of good news: Freddie Mac managed to boost its share of the GSE market up to 40.6 percent for all of 2014.

January 8, 2015 - Inside Mortgage Finance

Legacy Mortgage Troubles Continue for SunTrust As Lender Prepares to Take $145 Million Charge

SunTrust Banks started off the new year reliving the pain of the last six years since the financial crisis by revealing it plans to take yet another financial hit – this time, a $145 million legal expense in its fourth quarter results tied to legacy mortgage issues. In a Form 8-K filing with the Securities and Exchange Commission early this week, David Wisniewski, deputy general counsel, said the bank was taking the charge “to increase legal reserves and complete the final resolution of one matter. Accordingly, based on current information, the company expects its estimate of reasonably possible losses related to legal matters, in excess of reserves, to decrease by approximately this amount.” Wisniewski did not specify...

January 8, 2015 - Inside Mortgage Finance

Obama Administration Cuts FHA Premiums, Says Insurance Fund Won’t Be Damaged

President Obama this week announced a substantial price cut in FHA mortgage insurance premiums, although agency officials aren’t sure yet when the change will take effect. The FHA will lower its annual insurance payment from 1.35 percent to 0.85 percent, according to a White House fact sheet released in advance of the president’s speech as Inside Mortgage Finance was going to press late this week. According to the administration, the price cut won’t hurt...

January 8, 2015 - Inside Mortgage Finance

Ocwen Financial’s Exit from Agency Mortgage Servicing Business Could be a Long Goodbye

Ocwen Financial’s massive exit from the agency servicing market is expected to be a multi-year phase-out complicated by its past regulatory problems and a weak market for legacy product, according to industry advisors. If the company follows through on its promise to exit all segments of the agency market – Fannie Mae, Freddie Mac and Ginnie Mae – it will wind up selling a hefty $182.51 billion of residential mortgage servicing rights, based on third quarter survey numbers submitted to Inside Mortgage Finance. At Sept. 30, the nonbank serviced...

January 8, 2015 - Inside Mortgage Finance

GSE Business Volume Down Modestly in 4Q14 Thanks To Stronger Refi Market; Year 2014 Officially a Dud

Fannie Mae and Freddie Mac saw a modest decline in production of new single-family mortgage-backed securities at the end of 2014, but a rally in refinance lending softened the thud. The two government-sponsored enterprises securitized $179.38 billion of single-family MBS during the fourth quarter of last year, according to a new Inside Mortgage Finance analysis of loan-level data. That was down 2.1 percent from the third quarter of 2014. But the GSEs securitized...[Includes three data charts]

January 8, 2015 - IMFnews

GSE Securitizations Down Ever So Slightly in 4Q

It was the strongest refi volume of the year, and it helped offset a 9.8 percent drop in purchase-mortgage securitization over the same period.

January 7, 2015 - IMFnews

Short Takes: Steven Cohen Likes Walter / Some SAC Background / FHA Premium Cut? Bring it On / What Does the GOP Think? / Clarification on GSE Recap

Of course, we’re waiting to see what Republicans on Capitol Hill think of a cut in FHA premiums…

January 7, 2015 - IMFnews

CBO Weighs Auction of Fannie/Freddie MBS Guarantees

“Auctions would determine the market prices of those guarantees and allocate them to the lenders who most valued them,” the CBO said.

January 6, 2015 - IMFnews

California Still Loves Loan Brokers – A Lot

Mortgage brokers originated 21.3 percent of Golden State mortgages during the first nine months of the year...

January 6, 2015 - IMFnews

Letting the GSEs Rebuild Capital Won’t Happen Anytime Soon, Says MBA Chief

MBA's Stevens believes that making a change in the PSPAs would not go over very well in a Republican-controlled House and Senate.

January 5, 2015 - IMFnews

Short Takes: Obama Again on GSE Reform / Newly Minted MBAs Hate Mortgages? / Guild Goes HLTV / An ATR for Payday Loans? / John Adams Settles FHA Charges

Are recent graduates of business schools avoiding the mortgage industry?


The FHA is cutting its annual premium by 50 basis points. How much of a difference will this cut make in your FHA business?

Not much at all—maybe 10 percent at best.
Modestly. We expect a 10 percent to 25 percent gain in applications.
This is a real game changer, 25 percent or better.
Hard to say. This cut may just steal business away from the new Fannie/Freddie 97 LTV effort.

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