Freddie Mac

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

May 26, 2015 - IMFnews

What Happens to the Mortgage Market When the Fed Pulls out of MBS?

A big part of the MBS liquidity issue is caused by the Fed’s massive holdings, said Steve Abrahams, a managing director at Deutsche Bank.


May 22, 2015 - Inside Mortgage Trends

Economists See Lending Surge in Fuzzy Outlook

Mortgage originations are already off to a better start in 2015, and industry economists are predicting, on average, a 15 percent increase from last year’s sluggish output. But uncertain prospects in the housing market point toward a decline in mortgage originations next year, according to forecasters at the secondary market conference sponsored this week by the Mortgage Bankers Association. 2015 should bring the strongest housing sales volume since 2007, said Leonard Kiefer, deputy chief economist at Freddie Mac. Sales activity was decent over the winter, despite severe weather in many areas, but the market has yet to get back to normal. Freddie looks...[Includes one data table]


May 22, 2015 - Inside The GSEs

GSE Roundup

U.S. Mortgage Insurers Supports GSE Risk-Sharing. The USMI wrote a letter this week to Sen. Richard Shelby, R-AL, in support of Shelby’s regulatory relief bill, which calls on the GSEs to engage in front-end risk sharing transactions. “This directive would make greater use of private capital to “de-risk” the GSEs, lower the exposure and costs for the enterprises and taxpayers and should lower costs to borrowers,” the trade group said. Fannie Names Winning Bidders of First NPL Sale. Fannie Mae unveiled the winning bidders on its first-ever sale of non-performing mortgages last week: SW Sponsor LLC and PRMF Acquisition, the latter of which is an affiliate of Neuberger Berman Fixed Income Funds. The GSE...


May 22, 2015 - Inside The GSEs

FHFA Wins Lawsuite on Non-Agency MBS, Appeal is PLanned

Although the trial between the Federal Housing Finance Agency and Nomura Holdings is over, Nomura said that it is planning an appeal. The Japanese-based investment bank was found financially liable last week when Federal Judge Denise Cote ruled the bank knowingly sold bad mortgage-backed securities to the GSEs ahead of the 2008 financial crisis. The FHFA is working to put a dollar amount on the damages that Nomura and RBS Securities, the underwriter of four of the seven securitizations at issue, should pay. Nomura spokesman Jonathan Hodgkinson, said in a statement that losses by Fannie Mae and Freddie Mac resulted from an unprecedented decline in home prices. However, that defense approach failed. According to Cote “given the magnitude of falsity, it’s not surprising that the defendant...


May 22, 2015 - Inside The GSEs

CSP Being Bult for 'Now,' With Plans to be Adaptable

The common securitization platform and single security are years away, but officials from the GSEs, the Federal Housing Finance Agency and Common Securitization Solutions, LLC, offered additional information about future plans and the inner workings of the platform at the Mortgage Bankers Association Secondary Conference in New York this week. Robert Fishman, FHFA’s senior associate director in the office of strategic initiatives, said the two initiatives are intimately related because the CSP will be the platform to issue the single security. The CSP was already been underway when the single security was announced a year ago. Fannie Mae and Freddie Mac “are critical to the current function of the housing market. So while it’s very helpful to think about the...


May 22, 2015 - Inside The GSEs

Lenders Cautiously Laud Rep-And-Warrant Framework Clarity

Lenders are showing “restrained enthusiasm” for the new rep-and-warrant policy changes, according to Jeremy Potter, general counsel and chief compliance officer with Norcom Mortgage. The changes were made to help reduce uncertainty in addressing lenders’ concerns about when they might be asked to repurchase a loan. “On the one hand, you had some restraint where the lender’s reaction was ‘what am I really getting and how is this going to actually materialize?’ But on the other hand, there is the enthusiasm about an example of a regulator, investors and the lender community working together to make a significant advancement to accomplish goals that are good for everyone,” he said.


May 22, 2015 - Inside The GSEs

GOP Reg Relief Bill Passes, GSE Provisions Include PSPA, More...

The Senate Banking, Housing and Urban Affairs Committee this week passed the Financial Regulatory Improvement Act of 2015 by a 12 to 10 margin along party lines. The measure, introduced by committee Chairman Richard Shelby, R-AL, includes a number of GSE provisions. Title VII of the bill prohibits the use of increases in Fannie Mae and Freddie Mac guaranty fees to offset outlays or reductions in revenues for “any purpose other than enterprise business functions or housing finance reform as passed by the Congress in the future.” The bill was approved by the Senate Banking, Housing and Urban Affairs Committee. Another provision would prohibit the U.S. Treasury from selling or...


May 22, 2015 - IMFnews

What We’re Hearing: FHA Readies a Bromide? / Another FHA Lender May Sue HUD / Kudos for Quicken’s Bill Emerson / A Big M&A Deal Brewing? / At Least FBR’s Paul Miller is Optimistic

We understand that at least one other prominent FHA lender is contemplating filing a lawsuit against the government as well...


May 22, 2015 - Inside MBS & ABS

Nomura Considers Appeal of $805 Million Judgment, FHLBank Dismisses MBS Claims Against Some Banks

Nomura Holdings Inc. is mulling an appeal following last week’s court order that it, along with RBS Securities, pay Fannie Mae and Freddie Mac a total of $805.1 million to resolve claims arising from the pre-crisis sale of non-agency MBS to the government-sponsored enterprises. Judge Denise Cote of the U.S. District Court for the Southern District of New York rendered the judgment May 11 after a three-week bench trial in which she found Nomura and RBS liable for the claims brought by the Federal Housing Finance Agency. The MBS were backed by mortgages with an unpaid principal balance of about $2.05 billion at the time of purchase. Nomura and RBS, which underwrote four of the seven MBS deals at issue, provided...


May 22, 2015 - Inside MBS & ABS

Senate Committee Passes GOP Regulatory Relief Bill, GSE Capital Requirements Amendment Withdrawn

The Senate Banking, Housing and Urban Affairs Committee approved a Republican regulatory relief bill on a strictly partisan vote late this week, with all of the mortgage-finance provisions previously reported intact. Sen. Pat Toomey, R-PA, momentarily offered Fannie Mae and Freddie Mac a “get out of jail free” card, in the form of an amendment addressing capital requirements for the two government-sponsored enterprises, then withdrew it, presumably for use at a future point in time. “This is...


May 22, 2015 - Inside MBS & ABS

Banks Show Preference for Ginnie Securities As They Increase MBS Holdings in Early 2015

Commercial banks and thrifts reported robust growth in their MBS portfolios during early 2015, including a special appetite for Ginnie Mae MBS, according to a new Inside MBS & ABS analysis of call-report data. Commercial banks and thrifts held $1.579 trillion of residential MBS at the end of March, a 2.6 percent increase from the previous quarter. It was the industry’s biggest MBS portfolio since the third quarter of 2012, when banks and thrifts held a record $1.617 trillion of mortgage securities. The biggest gain was...[Includes two data tables]


May 22, 2015 - Inside MBS & ABS

MBS Trading Volume Hit a Yearly Low in April Despite Strong Issuance. Should the Market Worry?

In April, the average daily trading volume in agency MBS fell to $187.8 billion, the worst reading of the year and a possible harbinger of problems to come. One market participant, speaking under the condition his name not be used, likened it to MBS buyers “going on strike.” He added: “Right now, you have an illiquid market, and that’s not a good thing.” In December of last year, the MBS trading volume was...


May 22, 2015 - Inside MBS & ABS

Single-Security Is Years in the Distance as CSS Focuses On ‘Getting It Right,’ Bringing All Parties to the Table

Officials involved in the development of the common securitization platform and the single, interchangeable MBS for Fannie Mae and Freddie Mac have vowed not to publicize any timetable for the project. And despite several attempts to get an answer during a panel session at this week’s secondary market conference sponsored by the Mortgage Bankers Association, they stuck to their plan. They went out of their way to stress that they haven’t forgotten about potential non-agency users sometime down the road. But that’s...


May 22, 2015 - Inside MBS & ABS

MBS Market Faces Liquidity, Demand Issues When the Fed Finally Decides on Exit Strategy

The mortgage market faces a big challenge when the Federal Reserve figures out how to unload its massive $1.7 trillion portfolio of agency MBS, but anticipated widening of spreads could at least improve market liquidity. The fixed-income market has seen a sharp decline in trading volume resulting in part from regulatory issues, said Mike Fratantoni, chief economist at the Mortgage Bankers Association, during the group’s annual secondary market conference in New York this week. “Banks have been hoarding liquidity instead of providing it to the market,” he said. Average daily trading volume of MBS has dropped...


May 22, 2015 - IMFnews

FHFA Pulls Down the Cone of Silence on Single-Security Timeline

Is a single GSE security years in the distance? It's hard to say. The FHFA won't offer a timeline.


May 22, 2015 - IMFnews

Banks and Thrifts Gobble Up Ginnie Mae MBS

Commercial banks and thrifts held $1.58 trillion of residential MBS at the end of March, a 2.6 percent increase from the previous quarter.


May 21, 2015 - Inside Mortgage Finance

Analysts See Stronger Market in 2015, But Little Change In Fundamental Problems Facing the Mortgage Industry

Housing is showing some traction, but heavy regulation and enforcement continue to weigh on the mortgage market, according to analysts at this week’s secondary-market conference sponsored by the Mortgage Bankers Association in New York. Charles Gabriel, president of Capital Alpha Advisors, said there are some green shoots in the mortgage market, including signs of more home sales. But he characterized it as “a mature market that is suboptimized.” Lenders have paid massive penalties in lawsuits, he added, and there is no sign that they will expand the credit box. “U.S. Bank was asked...


May 21, 2015 - IMFnews

Final FHFA Servicer-Eligibility Rules Will Impact Smaller Shops More

According to analyst Paul Miller of FBR Capital Markets, the standards are meant to “impact small, nonpublic, nondepository institutions that have operated on the periphery of the sector.”


May 21, 2015 - IMFnews

Without the Refi Surge, the First Quarter Would Have Been a Dud

If purchase-lending doesn’t increase soon the mortgage industry could be in for some turbulence.


May 20, 2015 - IMFnews

Short Takes: Final Capital Standards from the FHFA Arrive / Nationstar Not Worrying / Leveraging Employees (Overseas Too) / Loan Officer Demand Red Hot? / Auction.com Branches Out

Among those nonbanks not losing too much sleep over the FHFA proposal is Nationstar Mortgage.


May 20, 2015 - IMFnews

FHFA IG Worries About Nonbank Risk (Again), Cyber Attacks, More

In response to its anxiety, the Inspector General plans a series of audits that will study the risks posed by an increasing volume of nonbank loan sales.


May 20, 2015 - IMFnews

TRID to Heighten Odds of Losses in U.S. RMBS, Moody’s Says

Mortgages with uncured TRID violations will have higher losses if they default, owing to the potential for increased legal costs and damages, said Moody's.


May 19, 2015 - IMFnews

MountainView, Phoenix Capital Out with $1B-Plus MSR Deals

The seller of the MSRs was identified as a “subsidiary of a publicly traded company established in 1995.”


May 18, 2015 - IMFnews

As Rates Rise, Residential Servicing Rights Increase in Value

Upwards of $500 billion of mortgage servicing rights could change hands this year. But maybe that estimate is too low...


May 15, 2015 - Inside FHA/VA Lending

Borrowers Suffer in the Long Run as Servicers Try to Avoid FHA Penalties

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...


May 15, 2015 - IMFnews

What We’re Hearing: What’s Next for Nationstar, Walter, Ocwen? / A Broken High-Touch Model? / Oh No: Ocwen Takes the Corporate Jet Away! / Texas Bank Warehouses Impac / FHFA Does Not Want the FHLBs to be an Issuer Through the CSP / More TRID Anxiety

More trouble for Ocwen: the corporate jet has been yanked!


May 15, 2015 - IMFnews

REIT MBS Holdings on the Wane. A Temporary Thing or a Trend?

Annaly remained the biggest REIT investor in MBS, although its holdings were down 14.9 percent from the fourth quarter.


May 15, 2015 - Inside MBS & ABS

FHFA Extends HARP One More Time, Weighs Development of New Streamline Refi GSE Program

The Federal Housing Finance Agency surprised no one when it announced a fifth, and final, extension of the Home Affordable Refinance Program for underwater Fannie Mae and Freddie Mac loans. But industry experts are intrigued by the prospect of a new streamlined refi program for the two government-sponsored enterprises. Analysts from Barclays said an extension was widely expected by the market and, as a result, “may not have much of an effect on seasoned cohort valuations.” FHFA Director Mel Watt announced...


May 15, 2015 - Inside MBS & ABS

Nomura Found Liable, MBS Suit v. Goldman Revived, Put-Back Claims Argued, CMBS Payments Protected

The Federal Housing Finance Agency is trying to put a dollar amount on damages it believes Nomura Holdings and RBS Securities should pay after a federal judge found the companies liable in connection with Fannie Mae’s and Freddie Mac’s pre-crisis investments in non-agency MBS. Judge Denise Cote of the U.S. District Court for the Southern District of New York said the complex case boiled down to whether the defendants accurately described in the offering documents the mortgages that underlie the securities sold to the government-sponsored enterprises. It was...


May 15, 2015 - Inside MBS & ABS

Shelby Bill Would Open Access to Emerging GSE Securitization Platform, Expand Risk Transfers

A new regulatory relief bill drafted by Sen. Richard Shelby, R-AL, would guarantee that the common securitization platform project managed by Fannie Mae and Freddie Mac would be open to all MBS issuers “as soon as practicable,” and structured as a nonprofit utility. The legislation, which also expands the risk-transfer activities of the two government-sponsored enterprises, lays the groundwork for the CSP being transferred away from the GSEs and managed by a third-party provider. But that doesn’t mean...


May 14, 2015 - IMFnews

FHFA Ticks Off Capitol Hill by Proposing Higher Pay for GSE Chiefs

Watt said GSE pay should be brought more in line with comparable private sector jobs, but no higher than what CEOs in the 25th percentile of the market make, which is roughly $7.26 million a year.


May 14, 2015 - IMFnews

Short Takes: President of Large Nonbank Out the Door? / Ocwen Selling Nonperforming MSRs / Clean is Good / More Ginnie Issuance by the FHLBs / A New Tool From Economists at the FHFA / WJB Hires New CIO

In a recent 10-K filing Ocwen disclosed that on April 30, 2015 it announced agreements with the GSEs to sell portfolios of non-performing loan servicing rights.


May 14, 2015 - Inside Mortgage Finance

Fresh Faces, Ideological Differences Continue To Darken Outlook for GSE Reform Legislation

Realtors want Congress to tackle reform of the government-sponsored enterprises, but they are keenly aware of the huge difficulties facing the effort, according to participants at this week’s annual legislative conference held by the National Association of Realtors. “I think what we want to get through to people in Congress is that these [GSE] programs were designed to be around and to be effective in times of a recession and prosperity in every single section of the country. That’s what they were there to do,” said Jerry Giovaniello, NAR’s senior vice president of government affairs. He said...


May 14, 2015 - Inside Mortgage Finance

Ocwen Making Headway on GSE Servicing Sales, But It’s Unclear Why the Firm Is Holding Onto its Ginnie Rights

Since late February, Ocwen Financial has struck four different deals to sell $89.4 billion in Fannie Mae/Freddie Mac servicing rights. Although buyer interest in the high-quality receivables was strong, getting those transactions past the Federal Housing Finance Agency has been a different matter. Industry advisors note that in general Fannie and Freddie promise their seller/servicers they will approve MSR transfers within 60 days unless there’s a problem. Last summer, the approval time was increased from 30 days, a change that did not receive much publicity. The FHFA, on the other hand, offers...


May 14, 2015 - Inside Mortgage Finance

FHFA Provokes Critics on Capitol Hill by Weighing Hefty Increases in Fannie/Freddie CEO Compensation

The Federal Housing Finance Agency is drawing flak after asking Fannie Mae and Freddie Mac CEOs to submit executive compensation analyses that could significantly boost pay for top management at the government-sponsored enterprises. The FHFA capped Fannie and Freddie CEO salaries at $600,000 in 2012, but FHFA Director Mel Watt wants to change that. In its first-quarter earnings statement, Freddie revealed that the regulator asked the GSEs’ boards to review CEO compensation. Rep. Ed Royce, R-CA, doesn’t...


May 14, 2015 - Inside Mortgage Finance

Government Mortgage Insurance Programs Make a Run on Private MIs; First-Timers Shifting the Scales

The volume of new mortgage originations with primary mortgage-insurance coverage held steady during the first quarter of 2015, but there was a noticeable shift toward the government MI programs, according to a new Inside Mortgage Finance analysis and ranking. Private mortgage insurers wrote coverage on $45.24 billion of new conventional originations during the first quarter, a 5.3 percent decline from the fourth quarter of last year. But FHA and Veterans Administration loan originations were up over the same period, by 5.5 percent and 6.0 percent, respectively. Based on Ginnie Mae securitization data, the volume of new rural-housing loans insured by the Department of Agriculture fell...[Includes three data charts]


May 13, 2015 - IMFnews

Short Takes: 40-Day Delays in Closings Because of TRID? / Good News Though / NAIHP Weighs in on TRID / Cordray Skips Out of NAR, Angering Many / Ocwen’s Head Count

Plenty of attendees at NAR were steamed that after CFPB Director Richard Cordray made his remarks about TRID that he left the meeting without taking a single question from the audience.


May 13, 2015 - IMFnews

Shelby's Bill Would Alter the Common Securitization Platform

To date, CSS has yet to perform a beta test and has a “black budget” whose details are only known to Fannie, Freddie and their regulator.


May 12, 2015 - IMFnews

Short Takes: Former FHA Chief Stands With Quicken / No FCA for Stevens / Cherry Hill Posts Small Loss / Nomura Loses / Biweekly Provider in CFPB Crosshairs / Milestone for DocMagic

Stevens also said that while he was FHA commissioner he chose not to go after lenders for violating the False Claims Act because he said such actions would have opened a “Pandora’s Box.”


May 12, 2015 - IMFnews

Purchase Market Starts to Rev Up in April, but Refis Still Key

Fannie and Freddie securitized $26.34 billion of purchase mortgages in April, a 24.3 percent increase from the previous month.


May 11, 2015 - IMFnews

MountainView and Phoenix Out with New Bulk MSR Deals

Interactive Mortgage Advisors, MIAC and The Prestwick Group are working on deals as well.


May 11, 2015 - IMFnews

Short Takes: Fidelity Set to ‘Spin Off’ Black Knight via an IPO / A Flow Chart is Required / Lots of Spin-Offs / Remember HomeSide Lending? / Shrinking Loss Reserves at the GSEs / Auction.com’s New Hire

Fidelity, a market leader in title insurance, has a market capitalization rate of $10.6 billion and is headed by William Foley, age 70, who has a history of spinning off companies.


May 8, 2015 - Inside The GSEs

Redirecting GSE Funds from One Housing Program to Another

A bill to redirect all 2016 funds from the Housing and Urban Development’s National Housing Trust Fund, which currently receives money from Fannie Mae and Freddie Mac to HUD’s HOME Investment Partnerships Program, was approved by a House subcommittee last week. Affordable housing advocates question the bill approved by the House Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies. In essence, the bill was designed to cover a shortfall in the HOME program funding. Sheila Crowley, president of the National Low Income Housing Coalition, said the bill “expresses a callous disregard for the plight of millions of Americans who labor in the low wage workforce and still cannot find modest housing they can afford to rent.”


May 8, 2015 - Inside The GSEs

Leaked Treasury Memo Raises Eyebrows About GSE Rescue

A 2011 document from the Treasury Department that was leaked last week has raised questions over whether or not all required documents pertaining to a dismissed suit against the Treasury were turned in. The suit stems from GSE shareholders suing over the Third Amendment profit sweep, which requires Fannie Mae and Freddie Mac to turn over the bulk of their profits to the Treasury. The Jan. 4, 2011, memo, leaked to Insider Sources, is from Undersecretary for Domestic Finance Jeffrey Goldstein and has the subject line “Housing Refinance Reform Plan.” The memo to former Treasury Secretary Timothy Geithner outlined a number of issues to reform the two, including privatization and proposals to wind down the GSEs.


May 8, 2015 - Inside The GSEs

Lending Survey Shows Little Impact from Rep-and-Warrant Changes

New life-of-loan representation and warranty- exclusion guidelines issued by the GSEs in November, appeared to have little impact on banks’ lending policies so far, according to a recent Federal Reserve Board survey.The rep-and-warrant changes were intended to reduce uncertainty and increase transparency in addressing lenders’ concerns about when they might be asked to repurchase a loan. The concerns were based on repurchase risk and other market factors that can cause an increase in credit overlays. “Addressing these concerns by providing tighter definitions and clarity should encourage sellers to serve a broader range of qualified borrowers,” said Dave Lowman, Freddie’s executive vice president of single -family business, when the changes were announced in November.


May 8, 2015 - IMFnews

FHFA Gives a ‘Final’ Extension to HARP and HAMP. Programs Will Sunset at Yearend 2016

The new sunset date is December 31, 2016.


May 8, 2015 - Inside Mortgage Trends

Cash-Out Refi Share Down Slightly in 1Q15

While refinance activity grew and accounted for 63 percent of all conventional-conforming originations in the first quarter, the number of borrowers cashing out equity or consolidating loans dipped slightly from 29 percent in the previous quarter to 27 percent. That was still up from 17 percent cash-out share of refinances in the first quarter of 2014, according to Freddie Mac’s quarterly analysis. But Freddie said the net dollars of home equity converted to cash as part of a refinance remained low ...


May 8, 2015 - Inside MBS & ABS

GSEs Focus on ‘Less-Liquid’ Assets in Trimming Retained Portfolios During First Quarter of 2015

Fannie Mae and Freddie Mac continued to follow orders and prune their retained investment portfolios – and potential future income – during the first quarter of 2015. But the government-sponsored enterprises ended the period holding more of their own MBS than when it started. The combined Fannie/Freddie mortgage investment portfolio fell 0.5 percent during the first quarter of 2015. Under their conservatorship agreement, each GSE is required to reduce its mortgage portfolio to $250 billion by the end of 2018. They each have a little over $150 billion more to go and, as of the end of March, 15 quarters to do it. The Federal Housing Finance Agency has directed...[Includes one data chart]


May 8, 2015 - Inside MBS & ABS

Agency MBS Activity Springs to Life in April As Purchase-Mortgage Volume Begins Growing

The agency MBS market in April had its strongest month of new issuance in 20 months thanks to the combination of strong refinance volume and a surge in purchase-mortgage lending. A new Inside MBS & ABS analysis and ranking reveals that Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $121.10 billion of new single-family MBS last month, an increase of 22.1 percent from March. It marked the strongest output since August 2013, when new agency MBS was tapering off from a huge influx of refinance business. Refinance loans continued...[Includes two data charts]


May 8, 2015 - IMFnews

Another Bullish Sign for Originations: Agency MBS Springs to Life in April

Fannie, Freddie and Ginnie all posted solid gains in volume during April, but Ginnie had the strongest increase with issuance rising more than 32 percent…


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