Freddie Mac

Browse articles from all of our Newsletters related to Freddie Mac.

March 5, 2015 - Inside Mortgage Finance

Prices Being Paid for ‘Flow’ Servicing Rights Off Their Highs; Nationstar on the Sideline for Flow?

The bid price for “flow” mortgage servicing rights is beginning to soften, having fallen from the peaks seen in the summer of 2014, according to both investors and certain advisors running the deals. But if a buyer of flow product is looking for bargains, it’s not likely to happen anytime soon. In other words, prices have drifted down, but are hardly cheap. In fact, a handful of sources contend that Nationstar Mortgage – one of the most active flow buyers of the past year – has ceased...

March 5, 2015 - Inside Mortgage Finance

New Policy Implemented for Fannie and Freddie Sales of Seriously Delinquent Loans

The Federal Housing Finance Agency this week directed Fannie Mae and Freddie Mac to provide a lot more transparency in the fledgling process of selling nonperforming loans, or NPLs, and to make sure borrowers are taken care of in the process. Freddie this week announced details on its second NPL sale; Fannie has not yet done such a transaction. But both government-sponsored enterprises are expected to emphasize selling their less-liquid assets, such as NPLs and non-agency mortgage securities, as they continue to downsize their retained portfolios. The new guidelines cover...

March 5, 2015 - Inside Mortgage Finance

Refinance Bounce in Late 2014 Not Quite Enough To Offset Sharp Drop in Purchase-Mortgage Lending

Most mortgage lenders reported solid increases in refinance originations during the fourth quarter of 2014, but the faltering purchase-mortgage sector still accounted for most of their business. A new Inside Mortgage Finance ranking and analysis reveals that refinance originations increased by 16.9 percent from the third to the fourth quarter. Based on securitization figures from Fannie Mae, Freddie Mac and Ginnie Mae, refi activity rose by a more modest 14.0 percent, although these data trail the primary market by one or two months. Meanwhile, purchase-mortgage originations were...[Includes five data charts]

March 5, 2015 - IMFnews

Short Takes: HARP, Withering on the Vine / It’s All About ‘Private’ Capital / Sticking Up for Southie / 2055 Was Right, 2015 Was Wrong

HARP volume fell a stunning 75.9 percent in 2014. So is it time to stick a fork in the program and call it a day?

March 4, 2015 - IMFnews

More Details Leak Out on Ocwen’s $45B MSR Sale: Bifurcated Reps and Warrants

“If something goes wrong, Ocwen will be on the hook,” said this source. “But it’s really clean stuff.”

March 4, 2015 - IMFnews

CFPB to Fully Enforce ‘TRID’ When August 1 Rolls Around

The nation’s top consumer regulator told lawmakers the bureau has already provided an extended implementation period of 21 months...

March 3, 2015 - IMFnews

Short Takes: HLSS Wants an Extension Too / What’s Behind Ocwen’s Goodwill Charge? / Stewart Title Headed to the Auction Block? / FHFA’s NPL Guidelines Expected? / Ben Lawsky Has Not Gone Home Yet

Meanwhile, Ocwen watchers are scratching their heads over a fourth quarter goodwill charge that eventually could reach $420 million...

March 3, 2015 - IMFnews

Freddie Mac Sells $392 Million of Seriously Delinquent Loans to Pretium and Bayview

Pretium won pools one and two, which have a combined loan balance of $238.6 million.

March 3, 2015 - IMFnews

Although Fannie and Freddie are Shrinking, Staffing Levels Hold Steady

Freddie had 4,957 full-time employees and 50 part-timers as of Feb. 5, down 2.1 percent compared to a year ago.

March 3, 2015 - IMFnews

A ‘Bank’ Is Buying Ocwen’s $45 Billion Package of Fannie Mae Servicing Rights

The identity of the bank could not be confirmed at press time...

March 3, 2015 - IMFnews

Disconnect Between Mortgage Industry and Obama Administration on Priority of GSE Reform

With little non-agency MBS issuance, Collingwood noted that it’s difficult to accurately price credit risk.

March 2, 2015 - IMFnews

Ocwen Updates: Big Goodwill Charge, Plans to Sell $45 Billion of Fannie MSRs

Coupled with a recently announced Freddie Mac MSR sale to Nationstar ($9.8 billion), Ocwen estimated the sale of GSE receivables will generate $550 million in gross proceeds.

March 2, 2015 - IMFnews

Short Takes: FHFA Wants Greater Accountability on GSE NPL Sales / A Fannie NPL Auction? / Ocwen Earnings Not Coming Soon? / Radian Lassoes 200 New Customers / Michael Kim Moves to Apollo

On Monday, the Federal Housing Finance Agency published new guidelines to govern nonperforming loan sales by Fannie Mae and Freddie Mac...

March 2, 2015 - IMFnews

Phoenix Offering Flow Deal That Could Yield $3.6 Billion of Product

Eventually, the seller may offer $500 million per month in GSE product or $6 billion per year.

March 2, 2015 - IMFnews

Ocwen’s Servicing Sales: A ‘Controlled Liquidation’?

A spokesman for Ocwen declined to comment on the “controlled liquidation” characterization and could offer no time table on when the lender/servicer might release its fourth quarter results.

February 27, 2015 - Inside Mortgage Trends

AEI Finds Risk Rising on Purchase Mortgages

The default risk index for securitized agency purchase mortgages rose to a new high in January, the fifth straight month of a steady increase in the composite National Mortgage Risk Index, according to the American Enterprise Institute. The NMRI increased to 11.97 percent, a 0.4 percentage point increase from the average default risk in fourth quarter last year and 0.8 percentage points up year over year. Data also indicated...

February 27, 2015 - Inside Mortgage Trends

Improvements Seen in Processing of Short Sales

Servicers are benefitting from quicker transaction times on short sales, according to Fannie Mae. The government-sponsored enterprise said transaction time has been cut in half for short sales compared with the end of 2012, though the number of these transactions has also declined significantly. Short-sale transaction timelines currently average 45 days to 60 days, down from an average of 120 days in late 2012, according to a post on Fannie’s Housing Industry Forum website. The GSE said the HomePath short sale portal has helped reduce the time it takes to complete a short sale. The portal was released...

February 27, 2015 - Inside The GSEs

GSE Roundup

Bulletin 2015-2. Feb. 17. Freddie Mac announced updates to the following: Guide Forms 16SF, Annual Eligibility Certification Report, and 1107SF, Seller/Servicer Change Notification Form, to implement a new requirement that seller/servicers review the Federal Housing Finance Agency’s Suspended Counterparty program list; and Form 1035, Document Custodial Agreement: Single-Family Mortgages. On the servicing side, Freddie revised notification requirements for bankruptcy cramdowns, including Form 1155, Bankruptcy Cramdown Pre-Confirmation Proposal Settlement Terms. It updated reporting and remittance requirements for properties purchased by third parties at foreclosure sale, including new Form 1160, Third-Party Sale Transmittal Worksheet. Freddie also updated rollback reporting requirements and insurance loss settlement requirements, and made clarifications related to bankruptcy filings after a foreclosure sale...

February 27, 2015 - Inside The GSEs

HARP Volume Continued To Taper Off in 2014

The flow of refinance mortgages to Fannie Mae and Freddie Mac increased during the fourth quarter, but the two GSEs continued to see declining volume in the Home Affordable Refinance Program. According to figures from the Federal Housing Finance Agency, Fannie and Freddie securitized 432,376 refinance mortgages in the fourth quarter, up 11.1 percent from the previous period. Fannie had the bigger gain, 16.2 percent. But total HARP activity fell 15.3 percent from the third quarter, and for the year it was down 75.9 percent from 2013 levels. The biggest slowdown in HARP were mortgages with loan-to-value ratios exceeding 105 percent. Both GSEs are doing more non-HARP streamlined refi business than in the program set up in 2009 for underwater ... [with two exclusive charts] ...

February 27, 2015 - Inside The GSEs

Courts Affirm Government Supremacy over Shareholders

A series of court decisions have affirmed the supremacy of the executive branch of government in its regulation of Fannie Mae and Freddie Mac to the chagrin of private-equity investors seeking compensation in the wake of the financial crisis, according to a recent analysis by Kroll Bond Rating Agency. Those recent court decisions confirm the fact that the two GSEs are “instrumentalities of the federal government and not private corporations,” Kroll analysts said. “While this reality may bother some equity investors – and rightly so – this is good news for bond investors,” they noted. For equity investors, the court decisions underscore the fact that the GSEs are “creatures of Congress,” the analysts pointed out. In contrast, private corporations are governed by ...

February 27, 2015 - Inside The GSEs

More Non-Performing Loan Sales Ahead For Freddie and Fannie

Remarks from the leadership of the GSEs and earnings-related disclosures suggest more sales of non-performing loans are in the cards this year. Freddie Mac is putting together its first NPL auction of 2015, CEO Don Layton said in a recent interview with IMFnews, an affiliated daily news service. Layton declined to provide any details, noting that the GSE has yet to make an official announcement on the coming sale. This past summer, Freddie sold $659 million of “deeply” delinquent loans from its investment portfolio. At the time, it marked a first for a GSE. Isaac Boltansky, an analyst at Compass Point Research & Trading, said, “GSE management’s commentary reinforces our view that the GSEs are moving slowly but surely towards ...

February 27, 2015 - Inside The GSEs

Regulatory Changes Suggested To Keep Fannie and Freddie Intact

With it looking more likely that the GSEs could survive in some form, a critic of Fannie Mae and Freddie Mac has proposed changes he suggests would address most of the flaws he sees in the companies. Mark Calabria, director of financial regulation studies at the Cato Institute, a libertarian think tank, said he offered the suggestions “in the spirit of lively debate.” He suggested that the federal government should open GSE charters to competition, allowing any firm that can meet the requirements to receive a GSE charter. Calabria said GSEs should have a capital requirement of at least 8.0 percent. Capital of 4.0 percent to 5.0 percent would have covered the losses Fannie and Freddie experienced in 2007, according ...

February 27, 2015 - Inside The GSEs

GSEs’ Staffing Levels Steady, Expenses Increasing

Fannie Mae and Freddie Mac employment numbers were relatively steady in the past year while expenses increased, according to a new analysis by Inside The GSEs. While staffing at Freddie has remained relatively level since the end of 2008, Fannie Mae has significantly boosted its employee count. As of the end of January, Fannie had approximately 7,600 personnel, including full-time and part-time employees, term employees and employees on leave, according to the latest annual report from the GSE. The employee count increased by 2.7 percent compared with January 2014. Fannie spent $1.32 billion on salaries and employee benefits in 2014, up 8.5 percent compared with 2013. Freddie had 4,957 full-time employees and 50 part-time employees as of Feb. 5, down ...

February 27, 2015 - Inside The GSEs

New GSE Earnings Raise the Specter of a Possible Loss

Fannie Mae and Freddie Mac reported somewhat underwhelming results for the fourth quarter, thanks to huge hits they took from hedging losses tied to their holdings of derivatives. The reduced earnings highlighted the fact that although the two have been cash cows for the U.S. Treasury over the past two years, they aren’t bullet proof. During separate press briefings with the media, the CEOs of both firms spent a bit of time going over the hits they took on their derivatives, stressing that the interest rate swaps they use to hedge rate swings are essential and cut both ways. The message was clear: if mortgage rates had not fallen dramatically in December, their earnings would have been ... [with one exclusive chart] ...

February 27, 2015 - IMFnews

What We’re Hearing: The Return of the Megabanks (in Mortgages)? / Nationstar Smelling Like a Rose (In Comparison)? / Why Quicken and Freedom May Never Go Public / CMG Mortgage Expects Strong Production Growth

After seeing what’s transpired at Nationstar, Owen and Walter the pass year, would Dan Gilbert (who owns Quicken Loans) and Stan Middleman (Freedom’s owner) ever ponder going public?...

February 27, 2015 - IMFnews

Mortgage Bankers Counting on Slightly Lower Fannie/Freddie G-Fees

Fannie Mae and Freddie Mac themselves are playing a key role in the decision-making process on guaranty fees...

February 27, 2015 - IMFnews

Yes, Wells Fargo Has Lost Market Share, but It’s Still the ‘Big Kahuna’ of Mortgages

Nonbanks have become more competitive the past few years, but if you think that Wells Fargo doesn’t like mortgages, think again.

February 27, 2015 - Inside MBS & ABS

Euro Regulators Work on Framework for ‘High-Quality’ Securitization, U.S. Issuers Concerned About Consistency

The European Commission last week requested comments on a framework for simple, transparent and standardized securitization that would apply to issuance in the European Union. A number of other non-U.S. regulators are considering similar proposals, prompting MBS and ABS participants in the U.S. to call for coordination among international regulators. The EC said its priority is to create a sustainable market for high-quality securitization without repeating the mistakes made before the financial crisis. “A high-quality EU securitization framework will promote further integration of EU financial markets, help diversify funding sources and unlock capital, making it easier for banks to lend to households and businesses,” the EC said. The European regulator stressed...

February 27, 2015 - Inside MBS & ABS

GSEs Focus on ‘Less Liquid’ Assets in Paring Retained Mortgage Portfolios

Fannie Mae and Freddie Mac reduced their combined mortgage investment portfolio by 13.7 percent last year by focusing on less-liquid assets. The two government-sponsored enterprises still had $821.7 billion of mortgages and MBS on their books at the end of the year. Freddie reported that it sold $16.5 billion of less-liquid assets such as unsecuritized mortgages, multifamily assets and non-agency MBS. At the end of the year, some 59 percent of its portfolio was designated as less liquid, down from 62 percent at the end of 2013. The Federal Housing Finance Agency in 2013 directed...[Includes one data chart]

February 27, 2015 - Inside MBS & ABS

Mortgage Industry Counting on Slightly Lower Guaranty Fees for Fannie and Freddie MBS

Although the Federal Housing Finance Agency has yet to tip its hand on where it might be headed regarding guaranty fees, most of the industry is betting on no change at all – or possibly a slight reduction, according to interviews conducted by Inside MBS & ABS over the past two weeks. Moreover, Fannie Mae and Freddie Mac themselves are playing a key role in the decision-making process, at least that’s what Freddie CEO Donald Layton said recently. “Guaranty fees are...

February 27, 2015 - Inside MBS & ABS

Banks Add to MBS Portfolios in Late 2014; Biggest Gain Was in Fannie/Freddie MBS

Commercial banks and thrifts added $12.2 billion of agency single-family MBS to their investment portfolios during the fourth quarter of 2014, according to a new Inside MBS & ABS ranking and analysis of call-report data. Banks and thrifts held $1.539 trillion of MBS on their books at the end of last year, a slight 0.3 percent increase from the third quarter. Bank/thrift holdings were up 2.2 percent from the end of 2013. Growth in agency mortgage securities was...[Includes two data charts]

February 27, 2015 - IMFnews

Commercial Banks, Thrifts Add to MBS Portfolios in Late 2014

At Dec. 31, depositories held $964.2 billion of pass-through securities issued by Fannie Mae, Freddie Mac and Ginnie Mae, a gain of 1.3 percent from the third quarter.

February 26, 2015 - Inside Mortgage Finance

Even After Taking Its Foot Off the Gas, Wells Remains Dominant in Market Share, Sees Room for Growth

Only one lender accounted for more than 10 percent of the single-family mortgage volume completed by Fannie Mae and Freddie Mac in 2014: Wells Fargo. The bank also dominates deliveries to Ginnie Mae and originations of jumbo mortgages. Wells had $180.89 billion in mortgage originations in 2014, accounting for 14.6 percent of total mortgage originations, according to Inside Mortgage Finance. The bank’s share of mortgage originations declined from 18.9 percent in 2013 as refinance activity slowed and nonbanks made efforts to compete for production and servicing. Officials at Wells said...

February 26, 2015 - Inside Mortgage Finance

Guaranty Fee Income Keeps Growing at Fannie And Freddie, Buyback Volume Eased in 4Q14

Falling interest rates tripped up Fannie Mae and Freddie Mac during the fourth quarter, indirectly leading to sharp declines in profitability despite continuing gains in their key mortgage-backed securities guaranty fee operations. Together, the two government-sponsored enterprises earned $1.54 billion in net income during the fourth quarter of 2014, down 74.3 percent from the previous quarter. With their retained portfolios in shrinkage mode, net interest income was down 11.9 percent from 2013. The big factor was...

February 26, 2015 - Inside Mortgage Finance

Suddenly, Ocwen is Popular Among Investment Bankers That Want to Help With Its ‘Managed’ Liquidation

Ocwen Financial – once deemed the fastest-growing residential servicer in the nation – is now facing huge shrinkage and is undergoing what some analysts and investment bankers are now calling a managed or “controlled” liquidation. The questions facing investors and business partners of the company is how fast can Ocwen shrink and what will be left for shareholders other than a pile of cash. “This could be...

February 26, 2015 - IMFnews

Nationstar’s Profit Drops 82 Percent, Originations Fall; However, $35B of MSR Deals Revealed

The fourth quarter was Nationstar’s worst production quarter of the year.

February 24, 2015 - IMFnews

Yellen Committed to Letting MBS Run Off the Fed’s Balance Sheet

Fed chief Janet Yellen also signaled a continuation of the status quo for interest rates...

February 23, 2015 - IMFnews

Short Takes: A Nice Bump for Ocwen’s Share Price / Will Ocwen Unload Non-Agency MSRs Too? / CashCall’s Non-QM Loan / Fidelity Grows Revenues 21 Percent

In case you’re wondering, Ocwen services roughly $208 billion of non-agency product.

February 23, 2015 - IMFnews

Nationstar Agrees to Buy Almost $10B of MSRs From Ocwen; More Deals Ahead?

The sale and transfer must first be approved by Freddie and its regulator, the Federal Housing Finance Agency.

February 20, 2015 - IMFnews

Ocwen Agrees to Sell $9.8 Billion of MSRs to Nationstar; ‘New Rez’ Will Buy HLSS

New Residential will pay roughly $18.25 a share for HLSS, valuing the deal at $1.3 billion.

February 20, 2015 - Inside FHA Lending

Lenders Urged to Study Changes in New Handbook

FHA lenders should spend the next couple of months familiarizing their staff with the requirements in the FHA’s new Single Family Housing Policy Handbook to ensure proper implementation of the changes on June 15, 2015, according to compliance experts. The impending changes in the Single Family Handbook are complex and significant. Lenders will need proper legal guidance to navigate and understand hundreds of pages of consolidated housing policies and guidance, as well as substantive changes to FHA requirements, said K&L Gates experts in a recent analysis. The handbook is a consolidated, authoritative source of single-family housing policy and is meant as a one-stop resource for FHA lenders. It gathers and streamlines all FHA requirements, which are currently spread throughout various handbooks, mortgagee letters and other documents, making it easier for lenders to ...

February 20, 2015 - IMFnews

What We’re Hearing: A GSE ‘Flying Naked’? / When Hedging Losses Turn Into Gains / 2018 is Year Zero / The C&I Conundrum / IBM’s Seterus Up to Something? / Former First Mariner Mortgage Chief Wins ‘Non-Compete’ Case

In 2018, the GSE capital buffer falls to zero dollars. Zilch. Nada. Hopefully by then, President Bush or President Clinton will have worked out a GSE reform deal with Congress…

February 20, 2015 - IMFnews

Fannie Posts Much Lower Earnings; CEO Says Lack of Capital Cushion Increases Likelihood of a Treasury Draw

When it comes to capital cushions, 2018 is "Year Zero" for Fannie Mae and Freddie Mac.

February 20, 2015 - Inside MBS & ABS

Is Now the Time to De-emphasize RMBS and Plow Into Servicing Rights? Cherry Hill Is…

Cherry Hill Mortgage Investment Corp., which has 76 percent of its assets invested in MBS, plans to whittle that down a bit and make a major push into mortgage servicing rights. The question is: will other real estate investment trusts follow suit? One REIT executive, who spoke under the condition his name not be used, said...

February 20, 2015 - Inside MBS & ABS

Market Participants Raise Some Issues, Questions About Proposed GSE Single Security With FHFA

Industry participants in the Treasury Market Practices Group raised questions about the tax consequences and other issues involved in the plan to develop a “single security” in a meeting with the Federal Housing Finance Agency last month. The recently released minutes of the meeting do not provide much detail. The FHFA representatives described in broad terms the project to create a fungible MBS that Fannie Mae and Freddie Mac would both issue in the to-be-announced market. In response, “Most TMPG members noted...

February 20, 2015 - Inside MBS & ABS

Mortgage Securitization Rate Hit Post-Crash Low in 2014 as MBS Fees Stay High and Portfolio Funding Remains Cheap

Securitization was still the dominant method to fund new home mortgage production in 2014, but Wall Street got a run for its money from portfolio lenders. A new Inside MBS & ABS analysis reveals that 70.5 percent of residential mortgages originated last year were funneled into mortgage securities. That was down from 78.5 percent in 2013 and represented the lowest mortgage securitization rate since 2006. Delivering eligible loans into new Fannie Mae, Freddie Mac and Ginnie Mae securities is...[Includes one data chart]

February 20, 2015 - IMFnews

Securitization Rate Hits Post-Crash Low as Banks Continue to Covet Whole Loans

Almost 71 percent of residential loans originated last year were funneled into mortgage securities. In 2013 the securitization rate was 78.5 percent.

February 19, 2015 - IMFnews

Fannie Plagued by Derivative Accounting as Well, 4Q Income Drops 66 Percent Fannie Mae posted a net profit of $1.3 billion in the fourth quarter, a 66 percent decline sequentially, blaming the earnings downdraft on a reduction in the fair value of its derivatives. The GSE “derivative problem” also plagued the fourth quarter results of Freddie Mac, which reported a slim profit of $227 million after writing down its derivatives by $3.4 billion. …

February 19, 2015 - Inside Mortgage Finance

Freddie Earnings Plunge

Freddie Mac earned just $227 million in the fourth quarter, blaming the 90 percent sequential decline in profits on derivative losses of $3.4 billion. In a briefing with the media, Freddie CEO Don Layton went out of his way to explain that when interest rates eventually rise, the government-sponsored enterprise could benefit greatly. “I wish that accounting was more tied to economics but it’s not,” he said. Layton stressed...

February 19, 2015 - IMFnews

Short Takes: Stearns Hires Executive Away From Wells Fargo / LOs in the Dumps Over Their Careers? / $1.35 Trillion in Originations This Year? / FHFA Official Bolts for Collingwood

Manna from heaven? Roughly 87 percent of LOs expect residential production to exceed 2014’s volume…


With the recent dip in interest rates, how do you feel about loan volumes this year?

We see loan production ending 2015 flat compared to 2014.
We’re optimistic that our originations will rise by 10 to 20 percent year over year.
We’re really optimistic: We expect production to increase by 20 percent or better from last year.
We’re not so bullish. Originations for us may actually fall.

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