Freddie Mac

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

July 9, 2014 - IMFnews

Mortgage Banker with a ‘Substantial’ MSR Portfolio Unloading Some of its Holdings

Over the past six months, many nonbanks have moved to sell MSRs as a way to remain cash flow positive in a tough origination market.


July 9, 2014 - IMFnews

Mortgage Brokers Gained Market Share in Second Quarter, At Least on GSE Loans

Marc Savitt, president of the National Association of Independent Housing Professionals, said he is seeing more lenders entering the wholesale channel. Most are nonbanks.


July 7, 2014 - IMFnews

FHFA Readies Capital Rules for Mortgage Insurers; ‘Available’ Assets Key

Investors that have bought stock – and debt instruments – in the MIs are anxious about the phase-in period for the capital standards.


July 7, 2014 - IMFnews

Residential MBS Issuance Gathered Momentum During Second Quarter

The most encouraging sign is that agency volume has been gaining pace. Production increased by 11.4 percent from May to June, with $76.48 billion in gross issuance.


July 3, 2014 - Inside MBS & ABS

Freddie Announces $285 Million ACIS Deal; GSE Risk-Sharing ‘Stellar’ One Year Later

Freddie Mac announced this week it has obtained insurance to cover some $285 million of losses on a pool of home loans as part of a risk-sharing effort encouraged by the government-sponsored enterprises’ regulator. The performance of these deals has been “stellar,” according to one analyst. The policies, tied to loans the GSE bought or guaranteed in the second quarter of 2013, were obtained under Freddie’s Agency Credit Insurance Structure. First rolled out in November 2013, this week’s most recent ACIS deal – the largest to date – demonstrates...


July 3, 2014 - Inside MBS & ABS

Agency REMIC Volume Dipped in 2Q14; Ginnie Most Active Issuer

Issuance of real estate mortgage investment conduits securities backed by agency MBS declined by 14.4 percent from the first quarter to the second, according to a new Inside MBS & ABS analysis. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $51.5 billion of REMICs during the second quarter. That left year-to-date production at $111.8 billion midway through 2014, down 25.8 percent from the same point last year. Ginnie remained...


July 3, 2014 - Inside MBS & ABS

Treasury Seeking to Revive Non-Agency MBS Market with New Practices and Standards

The Treasury Department announced late last week that it is working to develop market practices and standards that would be necessary “to support a safe and sustainable non-agency MBS housing finance channel of significant scale.” As part of the effort, the Treasury posed nine questions to industry participants and is accepting comments on the issue until Aug. 8. Michael Stegman, counselor to the Treasury for housing finance policy, said regulators have addressed most of the problems seen in the non-agency MBS market before the financial crisis. “The last remaining piece of the puzzle is putting in place standards and mechanisms to protect investors in residential MBS, while also clearly defining issuer responsibilities so that they have the confidence to return to the market at scale,” he said. Regulators may have “addressed”...


July 3, 2014 - Inside MBS & ABS

New Residential MBS Issuance Gathered Momentum During Second Quarter; Non-Agency Sector Faltered

Agency issuance of single-family MBS rallied during the second quarter of 2014, offsetting a slump in production of non-agency MBS and non-mortgage ABS, according to a new market analysis by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae combined to produce $212.23 billion of single-family MBS during the April-to-June cycle. That was up 13.3 percent from the first three months of 2014, which was the weakest quarter for agency MBS production since the first quarter of 2001. On a year-to-date basis, agency MBS issuance was...[Includes two data charts]


July 3, 2014 - Inside Mortgage Finance

FHFA-OIG Report Cites Risks to Fannie, Freddie From Nonbank Servicers Using Short-Term Financing

The Federal Housing Finance Agency agreed to provide guidance to Fannie Mae and Freddie Mac on how to manage the risks arising from their work with nonbank special servicers, the FHFA’s Office of Inspector General said in a report issued this week. The OIG said the FHFA and the government-sponsored enterprises “have responded well to specific problems at nonbank special servicers.” However, it said the FHFA “has not established a risk management process or overall oversight framework to handle some general risks” such servicers pose. The report cites...


July 3, 2014 - Inside Mortgage Finance

GSE Business Rebounds in Second Quarter As Purchase-Mortgage Sector Gains Strength

The anxiously-awaited Spring surge in purchase-mortgage lending finally arrived at Fannie Mae and Freddie Mac during recent months, according to a new Inside Mortgage Finance ranking and analysis of loan-level data from the two government-sponsored enterprises. The two GSEs issued $141.83 billion of single-family mortgage-backed securities during the second quarter, an encouraging 9.8 percent increase from the dreary levels recorded in the first three months of 2014. During the first quarter of this year, Fannie/Freddie MBS production set a 14-year low of just $129.21 billion. Clearly, the market isn’t...[Includes three data charts]


July 3, 2014 - Inside Mortgage Finance

FHFA Readies Capital Rules for Mortgage Insurers; Parent Companies May Have to Put Assets Into Subs

The Federal Housing Finance Agency will soon unveil capital rules for private mortgage insurers, introducing a risk-based standard based on loan-to-value ratios and other factors, while requiring parent companies to pledge assets to their MI subsidiaries if necessary, according to officials close to the matter. “Financial strength will be measured by comparing insured risk, on a risk-adjusted basis, against available assets,” said one official commenting under the condition he not be identified. The phrase “available assets” is key because it portends that liquidity must reside at the MI level and not at an affiliate of a parent company. It’s...


July 3, 2014 - IMFnews

What We’re Hearing: Those Darn Confidentiality Agreements with FHFA / Nationstar Does Not Borrow Short! Got That? / A 15-Year ARM (No, That’s Not a Misprint) / Ginnie Hits $1.5 Trillion Mark

One MI CEO, who we called, said this: “Thanks for reaching out. We, along with the other MIs are currently in confidential discussions with FHFA and the GSEs regarding the new standards. Unfortunately, we cannot comment until they are public.”


July 3, 2014 - IMFnews

Tax ‘Extender’ Coming for Mortgage Insurance?

A tax "extender" for mortgage insurance would help an already-healthy MI industry.


July 3, 2014 - IMFnews

GSE Business Rebounds in 2Q as Purchase Mortgages Gain Strength

Fannie Mae and Freddie Mac issued $141.83 billion of single-family MBS during the second quarter, an encouraging 9.4 percent increase from the dreary levels recorded in the first three months of 2014.


July 2, 2014 - IMFnews

Short Takes: Who’s the Mystery Nonbank Singled Out by the FHFA IG? / Nonbank Mortgage Stocks Suffer, Then Recover (Sort of) / The Loch Ness Monster and HELOC Resets / Applications Fall Ever So Slightly / HSBC is the Latest to Settle

It should be noted that after the FHFA IG report was released, the share value of Nationstar, Ocwen and Walter all suffered in trading...


July 1, 2014 - IMFnews

Short Takes: Wells Fargo in Repo Deal with Ocwen Spin-off / New Capital Rules for Mortgage Insurers? / In Non-QM Loans We Trust / Don’t Fear the HELOC Reaper / Radian Completes Clayton Deal / USB Settles FHA Charges

Will a coming boom in the production of non-qualified mortgages help residential lenders survive the origination slump?


July 1, 2014 - IMFnews

The FHLBs and MBS: The Love Affair Continues

The largest holder of MBS among the 12 regional banks is the Federal Home Loan Bank of San Francisco with $22.02 billion.


July 1, 2014 - IMFnews

FHFA IG Worries About Nonbank Servicers Using Short-Term Loans, More

The FHFA IG seems to be singling out one nonbank megaservicer in particular. But the Inspector General isn't naming names...


July 1, 2014 - IMFnews

FHFA Spearheading Effort on Capital Standards for Nonbank Servicers

But it’s not just talk of capital standards for nonbanks that has some in the industry spooked – it’s the issue of what constitutes capital.


June 30, 2014 - IMFnews

Short Takes: No CEO and president Needed for the Common Securitization Platform? / A Sweet Dividend for Investors in PennyMac / Is Home Building ‘Back’? Not So Fast / ABA Renews Strategic Alliance Deal With Freddie Mac

In case you haven’t noticed, many mortgage stocks are trading much closer to their 52-week lows than their highs.


June 30, 2014 - IMFnews

‘Chairman’ Shelby Might be Friendly to GSE Shareholders

Sen. Shelby is an Alabama Republican with a populist streak who is no friend of the GSEs, but he may side with shareholders of the two companies who are getting shafted by Treasury “sweeps.”


June 30, 2014 - IMFnews

Biggest Chunk of Fannie/Freddie Business Doesn’t Need MI

The most profitable business for Fannie and Freddie is loans with high credit scores and LTV ratios of 60 percent or less.


June 27, 2014 - Inside The GSEs

Fannie, Freddie MBS Activity Decreases Again in May

Fannie Mae and Freddie Mac in May resumed a more than year-long streak of declines with monthly decreases in the volume of single-family mortgages securitized by the two GSEs, according to a new Inside The GSEs analysis. Fannie and Freddie issued $44.8 billion in single-family mortgage-backed securities in May, a 1.3 percent decrease from the previous month. April’s $45.4 billion issuance proved to be just a brief reversal to the longer trend.


June 27, 2014 - Inside The GSEs

Enterprise Endnotes

DC Circuit Latest Court to Reject GSE Tax Collection Effort by Municipalities. A three-judge panel of the DC Circuit Court recently upheld a lower court ruling against Kay County in Oklahoma, which has been trying to collect real estate transfer taxes from Fannie Mae and Freddie Mac. In rejecting Kay County’s bid to get the GSEs to pay a 1 percent “documentary stamp tax,” the DC court’s finding became the latest in a growing number of…


June 27, 2014 - Inside The GSEs

GSE Investor Group Wants FHFA to Hike Fannie, Freddie Guaranty Fees

Any action that the Federal Housing Finance Agency takes in setting GSE guaranty fees should take into account the agency’s conservatorship duty to direct economic stakeholders, including shareholders, noted a coalition of Fannie Mae and Freddie Mac investors. In a letter to FHFA Director Mel Watt Wednesday, Investors Unite Executive Director Tim Pagliara urged the agency head to take into account “the critical purpose of setting appropriate guaranty fees,” noting that the Finance Agency does not have a mandate as conservator to run Fannie and Freddie as not-for-profit entities.


June 27, 2014 - Inside The GSEs

Federal, State Regulators Focus On Servicing, Including GSE MSRs

A recently issued advisory by Fannie Mae’s and Freddie Mac’s conservator noting that the two GSEs should only approve mortgage servicing sales where the transactions “are consistent” sound business practices comes as part of a renewed federal and state focus on servicing, officials note. Although Fannie and Freddie have, for years, had minimum capital requirements for mortgage companies that want to become seller/servicers, the Federal Housing Finance Agency and state regulators are now exploring codifying a capital minimum for nonbanks, according to industry officials and state regulators.


June 27, 2014 - Inside The GSEs

Forecast: GSE Risk-Sharing Deals To Exceed FHFA’s 2014 Goal

Fannie Mae and Freddie Mac are expected to continue issuing more risk-transfer deals even though both GSEs have effectively reached their 2014 targets. But some of the potential upside for investors has dissipated, according to separate analyses by Fitch Ratings and Wells Fargo Securities. Tight pricing on mortgage risk transfer securities issued by Fannie and Freddie indicates a “growing appetite for this relatively new and unique form of mortgage risk,” noted Fitch.


June 27, 2014 - Inside The GSEs

RBS Agrees to Pay FHFA $99.5M To Settle Non-Agency MBS Lawsuit

The Federal Housing Finance Agency late last week announced it reached a nearly $100 million settlement with RBS Securities to settle allegations tied to non-agency MBS bought by Freddie Mac from 2005 to 2007, but the deal represents just a fraction of the firm’s remaining exposure. The $99.5 million settlement only resolves claims against RBS in FHFA v. Ally Financial Inc. in the Southern District of New York. Ally Financial is the successor company to GMAC-RFC, a now defunct non-agency MBS issuer.


June 27, 2014 - Inside The GSEs

OIG: FHFA Should Sue To Recover LPI Overcharges on GSE Coverage

A new audit released this week by the Federal Housing Finance Agency’s official watchdog found that Fannie Mae and Freddie Mac suffered $158 million of “financial harm” due to excessively priced lender-placed or “force-placed” insurance policies in 2012 alone. The FHFA-OIG audit notes that several state financial regulators found that the LPI rates in their states were excessive. The excessive costs were driven up by “profit-sharing arrangements under which servicers were paid to steer business to LPI providers. Such arrangements often took the form of commission structures and reinsurance deals,” according to the OIG.


June 27, 2014 - IMFnews

What We’re Hearing: A Spike in Demand for ‘Key’ Mortgage Talent / About Those M&A Deals… / ‘Significant’ MSR Auctions in the Works / Good CFPB News for Ocwen and Nationstar / Risk-Based Capital for Mortgage Insurance Firms? / Carrington Under Investigation by the SEC

We continue to hear plenty of talk about mortgage mergers and acquisitions with deal announcements likely to come between early July and late August.


June 27, 2014 - Inside MBS & ABS

Wells Fargo: Fannie, Freddie Risk-Sharing Deals on Track To Exceed 2014 Goal, Tightening Spreads Blunt Upside

Even though the risk-sharing targets set for Fannie Mae and Freddie Mac have been all but met this year, expect the two government-sponsored enterprises to come to market with risk-sharing transactions at least once a quarter, with the likely result of both firms exceeding the 2014 target “by at least” $20 billion, predicted an analysis by Wells Fargo Securities. The FHFA’s 2014 Conservatorship Scorecard directs the GSEs to reduce taxpayers’ risks by increasing the role of private capital in the market via several strategies, including tripling the credit risk transfer goals to $90 billion in 2014 from $30 billion in 2013. Year-to-date, Fannie Mae’s Connecticut Avenue Securities program has already achieved...


June 27, 2014 - Inside MBS & ABS

Securitization Rate Slipped in Early 2014 Despite Backlog Pushing Through Fannie and Freddie

About $179.6 billion of newly-originated home mortgages were securitized during the first quarter of 2014, resulting in a securitization rate of 76.4 percent, according to a new Inside MBS & ABS market analysis. The securitization rate was down slightly from 78.5 percent for all of last year and 78.8 percent during the fourth quarter. Historically, the rate peaked in 2009, when 84.4 percent of new originations were securitized. In the conventional conforming market, Fannie Mae and Freddie Mac securitization volume ($126.4 billion) actually exceeded...[Includes one data chart]


June 26, 2014 - Inside Mortgage Finance

Purchase-Mortgage Closing Process Improves With Shorter Timelines, More Accurate Disclosures

As the spring homebuying season has progressed, lenders have improved closing times for purchase mortgages, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Industry participants also report improvements to good faith estimates with fewer closing cost surprises for borrowers. Closing times declined on a number of different mortgage types, based on three-month moving averages. Fannie Mae and Freddie Mac mortgages with a downpayment of at least 20 percent took...


June 26, 2014 - Inside Mortgage Finance

IG Audit: Fannie, Freddie Overcharged at Least $158M For ‘Force Placed’ Insurance, FHFA Should Sue to Recover

The Federal Housing Finance Agency will “assess the merits of litigation” against Fannie Mae’s and Freddie Mac’s servicers and lender-placed insurance providers to recover premium overpayments by the government-sponsored enterprises following a pointed suggestion to do so by the agency’s official watchdog. A new audit released by the FHFA’s Inspector General found that Fannie and Freddie could have overpaid about $158 million in 2012 alone for lender-placed or “force-placed” insurance policies. The IG said it calculated its $158 million figure as the difference between the amount the GSEs actually paid in premiums – $360 million – and a “reasonable” price for such coverage – $202 million. “Our retrospective analysis suggests...


June 26, 2014 - Inside Mortgage Finance

FHFA Spearheading Effort on Capital Standards for Nonbank Servicers, States Looking at the Issue as Well

Although Fannie Mae and Freddie Mac have, for years, had minimum capital requirements for mortgage companies that want to become seller/servicers, the Federal Housing Finance Agency and state regulators are now exploring codifying a capital minimum for nonbanks, according to industry officials and state regulators. During a webinar this week sponsored by Inside Mortgage Finance, participants highlighted the “hot topic” nature of capital requirements for nonbanks. John Prendergast, vice president of non-depository supervision for the Conference of State Bank Supervisors, indicated that capital requirements for nonbanks are more of a matter of when, not if. However, participants who have been tracking the matter caution...


June 26, 2014 - Inside Mortgage Finance

Mortgage Servicing Market Shrank Again in Early 2014; Nonbanks Continue Building Market Share

The supply of mortgage debt outstanding declined again during the first quarter of 2014, slipping to its lowest level in eight years, according to new Federal Reserve data. There was a total of $9.851 trillion of home mortgages outstanding as of the end of March, down 0.4 percent from the previous quarter. The mortgage servicing market has been in almost constant decline since midway through 2008, with a modest bump higher in the third quarter of last year after a relatively strong rally in housing activity. Even the agency mortgage servicing market lost...[Includes two data charts]


June 25, 2014 - IMFnews

Short Takes: Did Ocwen Off-Load Some Servicing to Cenlar? / Wholesalers Capping Broker Compensation at 2.2 Percent? / The Final Squeezing of the HARP Grapes? / A Kinder, Gentler CFPB?

We talked a handful of wholesalers and were told the figure is much lower – in the range of 2.2 percent to 2.5 percent. Broker-sourced loans account for less than 10 percent of all loans funded today,


June 25, 2014 - IMFnews

Fannie and Freddie Were Overcharged $158M for Force-Placed Insurance; But Will FHFA Sue?

The FHFA will weigh the merits of taking legal action against vendors, but could take upwards of 12 months to make a final decision.


June 24, 2014 - IMFnews

Short Takes: Altisource Gets Smacked Around / Ellie Mae Founder Selling Shares / No More Bad Mortgages to Buy? / FHFA Inundated With Emails / Credit Suisse Not Turning Over Juicy Documents?

In other mortgage-stock news, Ellie Mae Co-founder, Chairman and CEO Sig Anderman has been exercising stock options of late, and selling shares in the company.


June 24, 2014 - IMFnews

Are Fannie and Freddie Being Engineered to be Barely Profitable?

But do Fannie and Freddie really represent a faulty business model, as the White House and Treasury Department keep declaring?


June 23, 2014 - IMFnews

Bayview Getting Attention from Sellers on Non-QM Loans, More

On the non-QM front, Bayview will go as high as $1.5 million, but the loan-to-value ratio is capped at 80 percent.


June 23, 2014 - IMFnews

Closing Times on Purchase Mortgages Improving, GSE Loans at 43.7 Days

On Fannie Mae and Freddie Mac mortgages with private mortgage insurance, average closing times declined to 42.5 days from 46.0 days.


June 20, 2014 - IMFnews

What We’re Hearing: Will New York State Ever Charge Ocwen? / Which Firm is Servicing Ben Lawsky’s Mortgage? / FHFA May Set Capital Minimums for Nonbank Servicers / Redwood Trust Gets Membership in An FHLB

Sources tell IMFnews that the Federal Housing Finance Agency is looking into the matter and is promoting the idea of capital minimums for nonbanks that do business with Fannie Mae and Freddie Mac.


June 20, 2014 - Inside MBS & ABS

Treasury Official: It Would Take 20 Years to Recapitalize Fannie, Freddie; White House Committed to Wind Down

A senior Treasury Department official pushed back against the idea of rehabilitating the two government-sponsored enterprises, noting in a speech late last week that the firms cannot be re-capitalized and reiterating the Obama administration’s commitment to wind down Fannie Mae and Freddie Mac. Mary Miller, the Treasury’s undersecretary for domestic finance, said that even if the two GSEs were allowed to stay in business and build up capital, it could take “at least” 20 years to recapitalize Fannie and Freddie. “During these 20 years, the taxpayer would remain...


June 20, 2014 - Inside MBS & ABS

Single-Family MBS Market Shrinks in Early 2014 As Growth Slows in Agency Market

The supply of single-family MBS outstanding fell modestly during the first quarter of 2014, reversing three consecutive quarters of modest growth, according to a new Inside MBS & ABS analysis. As of the end of March there was $6.371 trillion of single-family MBS outstanding, down 0.3 percent from the end of 2013. The supply of single-family MBS had been drifting lower since peaking at $7.007 trillion at the end of 2009 as refinance activity – which adds little to outstanding supply – dominated the agency market and non-agency MBS issuance gained little traction. For the last nine months of 2013, the MBS market finally began...[Includes two data charts]


June 20, 2014 - IMFnews

RBS Still has Major Non-Agency MBS Exposure Tied to Fannie/Freddie

RBS, which is effectively owned by the British government, still faces liability in private label security (PLS) matters tied to Greenwich Capital, a U.S. subsidiary that at one time was the largest nonprime issuer in the nation.


June 20, 2014 - IMFnews

MBS Supply Fell in First Quarter, Slight Growth in Agency Product Thanks to Ginnie

The agency MBS market did grow by a slight 0.1 percent during the first quarter, but all of the credit goes to Ginnie Mae.


June 19, 2014 - Inside Mortgage Finance

HUD Submits Final Housing Trust Fund Rule for OMB Review Despite Uncertain Funding Prospects

The Department of Housing and Urban Development recently submitted to the Office of Management and Budget a draft final rule that would determine how the controversial national Housing Trust Fund would work. It remains highly uncertain that the trust fund will ever get any money; one potential source is annual contributions by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency under former Acting Director Ed DeMarco determined that the government-sponsored enterprises would not contribute to the fund, but housing advocates and Democrats on Capitol Hill have called for that decision to be reversed. In its annual strategic plan released earlier this year, the FHFA said...


June 19, 2014 - Inside Mortgage Finance

CFPB Director Cordray Defends National Mortgage Database Data Collection Efforts

Consumer Financial Protection Bureau Director Richard Cordray came under sustained partisan criticism from Republicans on the House Financial Services Committee this week over the joint National Mortgage Database the CFPB is working on with the Federal Housing Finance Agency. “We have learned since Director Cordray was last before the committee that the joint database project by the CFPB and the FHFA will undeniably collect personally identifiable information on millions of Americans in the National Mortgage Database,” said Committee Chairman Jeb Hensarling, R-TX. “I’m not speaking merely of names, addresses and phone numbers – though the database will certainly include those – but shockingly also people’s Social Security numbers, their race, religion, personal financial information, and even the GPS coordinates of their homes. If this is not considered personally identifiable information by the CFPB, then I don’t know what is.” A breach of this database could cause...


June 19, 2014 - IMFnews

Short Takes: So, What’s Ed DeMarco Up to These Days? / Beat on the Brat Because of His (Lack of) GSE Knowledge / CFPB Rules Have Had No Impact Whatsoever on the Industry? / FHA Unveils New HECM Guidance / A New Strategy in MBS Cases

He may know how to run a decent race, but does economics professor David Brat – the man who beat Rep. Eric Cantor in the GOP primary in Virginia – know the history of the mortgage meltdown?


Poll

Will non-QM lending add to loan production by 2015?

Yes, but not by much.
Yes, by a lot. Necessity is the mother of invention.
No way. You’re dreaming.
I’m hopeful, but unsure of the whole non-QM market.

vote to see results
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