Freddie Mac

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

March 22, 2017 - IMFnews

Wall Streeter Phillips to Play ‘Critical’ Role at Treasury on GSE Reform; GSE ‘Principles’ Coming Soon from Trump?

Calabria joined the Trump administration from the conservative Cato Institute and is no fan of the GSEs...


March 20, 2017 - IMFnews

Wholesale-Broker Channel Saw Big Gains in Agency Market Last Year

Mortgage brokers earned their biggest market share in the Ginnie Mae sector…


March 17, 2017 - IMFnews

Credit Reporting Changes Could Spur More Mortgage Lending

The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage.


March 17, 2017 - Inside MBS & ABS

Government Must Turn Over Unprivileged Documents Relating to Treasury Sweep

In a prominent Fannie Mae and Freddie Mac shareholder case, the government was ordered to go back through thousands of documents related to the Treasury sweep to determine whether they fall under the executive privilege that has been more narrowly defined. In an attempt to make sure the government asserted privilege properly on the 11,000 documents it is withholding, Federal Claims Court Judge Margaret Sweeney asked it to reexamine the large batch and turn over any that don’t merit secrecy by April 17. This order follows...


March 17, 2017 - Inside MBS & ABS

Trump Administration Plan to Tackle Tax Reform Expected to Have an Impact on Housing Reform

Tax reform may have a significant impact on Fannie Mae and Freddie Mac, before federal policymakers get around to resolving the long-running conservatorships of the two government-sponsored enterprises. Reducing the corporate tax rate is a big component of the Trump administration’s tax reform plan, but it could force the GSEs to write down the value of their deferred tax assets. “It is...


March 17, 2017 - Inside MBS & ABS

Banks Help Pick Up Some of the Slack as Overseas Investors, GSEs Shed MBS Holdings in Late 2016

Thanks to strong growth in the agency market, the supply of single-family MBS outstanding continued to grow over the final three months of 2016, a new Inside MBS & ABS analysis reveals. Agency MBS outstanding pushed to a new record, $6.034 trillion, as of the end of last year. The biggest gainer continued to be Ginnie Mae, which reported a 2.2 percent increase in the fourth quarter and a 7.7 percent gain for the year. Freddie Mac matched Ginnie’s fourth-quarter increase, but its year-to-date gain was smaller, 4.2 percent. Fannie Mae had...[Includes two data tables]


March 16, 2017 - Inside Mortgage Finance

Wholesale-Brokers Saw Biggest Gains in Agency Market Last Year, But Retail Was Still King

Fannie Mae, Freddie Mac and Ginnie Mae securitized $183.69 billion of newly originated mortgages produced through the wholesale-broker channel last year, a new Inside Mortgage Finance analysis reveals. That was up 22.2 percent from 2015 volume, the biggest increase among the three mortgage-production channels. The biggest increase for broker originations was in Fannie mortgage-backed securities, rising 31.5 percent from 2015, accounting for 12.2 percent of the government-sponsored enterprise’s MBS issuance last year. The dataset includes only purchase and refinance loans that were securitized within six months of origination, and it excludes mortgages with no channel identification. Brokers earned...[Includes two data tables]


March 16, 2017 - Inside Mortgage Finance

Credit Reporting Changes Could Spur Mortgage Lending as Consumers’ Scores Are Elevated

The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage. Many tax liens and civil judgments, which can weigh down a credit score, will be removed. As part of a multi-year plan to alleviate incorrect information, on July 1, Equifax, Experian and Transunion will apply new public record standards when it comes to collecting and the timely updating of civil judgments and tax liens, the Consumer Data Industry Association said this week. The new standard will apply...


March 16, 2017 - Inside Mortgage Finance

Commercial Banks Continue Servicing Pullback, Thrifts and Credit Unions Pick Up Some Slack

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry. Recently released data from the Federal Reserve show $10.266 trillion of mortgage debt outstanding at the end of last year. That was up 0.7 percent for the quarter and reflected a 2.3 percent gain for the full year. The market still has a long way to go to catch up to the $11.240 trillion of mortgage debt outstanding at the end of 2007, but growth has been steady since bottoming out in mid-2014. The agency market continued...[Includes two data tables]


March 15, 2017 - IMFnews

Corporate Tax Reform Could Complicate Recapitalizing Fannie and Freddie

Fannie Mae and Freddie Mac could have a harder time recapitalizing if their deferred tax assets are negatively impacted by corporate tax reform, according to one GSE spectator....


March 10, 2017 - Inside The GSEs

GSE Roundup

Freddie Hosts Employee Panel on Affordable Housing. In commemoration of Black History Month, Freddie Mac’s ARISE employee resource group invited all employees to a panel discussion on the company's commitment to affordable housing, particularly in the African-American community. The GSE said that the panelists began by discussing the importance of homeownership in all communities, while recognizing that there is a gap between white and non-white homeownership rates. Panelists discussed ways that Freddie is helping close this divide via programs including Home Possible mortgages that offer low downpayment options for low- to moderate– income homebuyers, reducing one of the financial barriers that impede African-American families from homeownership. And they talked about the GSE’s commitment to financing affordable rental properties. Investors Unite Podcast Launch.


March 10, 2017 - Inside The GSEs

Freddie January Delinquencies Reach Lowest Point Since 2008

The number of Freddie Mac mortgages that have fallen seriously delinquent or are in foreclosure dropped below 1 percent in January, the first time in close to a decade. Last week Freddie reported that the rate is significantly below the 3.13 percent rate for the entire mortgage market. The last time it was under 1 percent was in 2008, when it was .93 percent. It peaked at 4.20 percent two years later in 2010. It has gradually come down in subsequent years with the rate falling to 3.25 percent in 2012 and 1.88 percent in 2014. The seriously delinquent rate is for mortgage loans that are three or more monthly payments past due or are in foreclosure.


March 10, 2017 - Inside The GSEs

Industry Groups Rally Around Bill to Protect Guarantee-Fee Usage

Preventing GSE guarantee fees from being used as income for unrelated government spending has been an ongoing battle. In the latest attempt to block this from happening, more than a dozen mortgage and housing groups sent a joint letter in support of the Risk Management and Homeowner Stability Act. H.R. 916, introduced by Reps. Mark Sanford, R-SC, and Brad Sherman, D-CA, was created to stop g-fees from being tapped for non-housing programs. The Mortgage Bankers Association, Community Mortgage Lenders of America, the American Bankers Association and U.S. Mortgage Insurers are among the 14 groups that signed the letter. They argue that increasing g-fees for other purposes imposes an...


March 10, 2017 - Inside The GSEs

Freddie Changes Impact Self-Employed and 401(k) Reporting

Freddie Mac implemented a few underwriting changes that went into effect this week regarding a borrower’s self-employment status, retirement accounts and commission income. The GSE announced that the documentation required for self-employed borrowers will be revised based on the number of years the borrower has been self-employed and the business has been in existence. Borrowers self-employed for less than five years will face greater scrutiny under the new requirement. Borrowers who are self-employed and have had a business operation for at least five years will require one year of personal and business returns. But those who have been self-employed with business in operation for less...


March 10, 2017 - Inside The GSEs

Government Ordered to to Review Documents for Bogus Privilege Claims

The government has until April 17 to prove that the 11,000 documents it is withholding are correctly labeled as “privileged.” This week, a ruling by Federal Claims Court Judge Margaret Sweeney ordered the government to review the documents and release those that are non-privileged to the plaintiff’s attorneys in Fairholme Funds Inc. et al., v. The United States. The order came on the heels of a January appeals court ruling that found the bulk of a batch of 56 documents the government refused to turn over to the plaintiff’s attorneys, after being ordered to do so last year, did not merit privilege treatment. They included various memos, emails and presentations from the Treasury, Federal Housing...


March 10, 2017 - Inside Mortgage Trends

Correspondent Big Winner in Some Segments

The correspondent lending channel was the big winner last year in terms of increased production and market share – at least in the conventional-conforming and jumbo sectors, according to a new analysis by Inside Mortgage Trends. Competition among the three main production channels evened out in the government-insured market. Correspondent production of conventional-conforming mortgages increased...


March 10, 2017 - Inside MBS & ABS

GSE Reform Proposals Have Different Takes On What Will Become of Fannie, Freddie

A common theme among housing finance reform proposals is to infuse more private capital into the system while not disrupting the market. Beyond that, the plans take significantly different approaches about what to do with Fannie Mae and Freddie Mac. Jim Parrott, senior fellow at the Urban Institute and the co-author of one of those proposals, released a paper this week comparing his plan with the revised proposal from the Mortgage Bankers Association and a blueprint described by the Milken Institute. The MBA proposed...


March 10, 2017 - IMFnews

Industry Bands Together to Fight G-Fee Usage for Unrelated Funding

According to an Inside Mortgage Finance analysis, Fannie and Freddie have passed along some $9.6 billion of MBS fees under the provisions of the 2011 Temporary Payroll Tax Cut Continuation Act.


March 9, 2017 - Inside Mortgage Finance

Support Grows for Bill to Prevent Government From Tapping G-fees for Unrelated Funding

More than a dozen mortgage and housing groups are backing a House bill that would prevent guaranty fees on Fannie Mae and Freddie Mac mortgage-backed securities from being hijacked to pay for unrelated government spending. A joint trade group letter, signed by the Mortgage Bankers Association, Community Mortgage Lenders of America, the American Bankers Association, U.S. Mortgage Insurers and others, argues that tapping g-fees for other unrelated purposes imposes an “unjustified burden” on homeowners who would be forced to pay for the increase through higher monthly payments for the life of their loan. Our organizations were...


March 9, 2017 - Inside Mortgage Finance

Subservicing Sector Starting to Look Crowded As More Firms Choose ‘Capital Light’ Strategy

The nation’s residential subservicing specialists increased their contract base to $1.93 trillion at the end of 2016, a 2.7 percent sequential gain and an impressive 22.9 percent improvement over yearend 2015, according to survey figures compiled by Inside Mortgage Finance. It’s a sign that this segment of the industry is beginning to look a bit crowded, which means profit margins could come under pressure. Over the past year, several fairly large players in the market – Flagstar, Nationstar Mortgage, Walter/Ditech and PHH Mortgage – have sold...[Includes one data table]


March 9, 2017 - Inside Mortgage Finance

Agencies Nipped More Jumbo Share in 2016, Heavy VA Refinance Activity Played a Role

The jumbo mortgage market generally kept pace with the robust growth in first-lien originations last year, but the agency component clearly did better than the non-agency side, according to a new Inside Mortgage Finance ranking and analysis. An estimated $534.57 billion of single-family mortgages with loan balances exceeding $417,000 were produced last year, an increase of 20.0 percent from 2015. That was in line with the 19.0 percent growth in total first-lien production in 2016. But the agency jumbo market – loans in high-cost markets eligible for securitization by Fannie Mae, Freddie Mac and Ginnie Mae – was...[Includes three data tables]


March 8, 2017 - IMFnews

Short Takes: What Higher Rates Might Mean / And the Refi King of Mortgage Banking is… / There’s Still a Disturbance in the (Mortgage) Force, Only Less So / Vertical Looking to Buy / Better Mortgage’s First Year

Fannie and Freddie are still worth less than social media darling Snap, but the gap is narrowing...


March 8, 2017 - IMFnews

Fairholme Case Update: Judge Orders Government to Review and Hand Over Non-Privileged Documents

Since Fairholme filed its “takings” case the government, Uncle Sam has turned over 48,000 documents totaling more than 500,000 pages.


March 7, 2017 - IMFnews

Short Takes: It Appears Carson Likes the MI Industry / New HUD Chief Carson Asks Employees to Take ‘The Niceness’ Pledge / You Can’t Overload the Human Brain? / Prestwick Selling GSE Servicing Rights / Freddie’s New Whole Loan Deal

"You can't overload the human brain," said newly minted HUD secretary Ben Carson. And there was more...


March 7, 2017 - IMFnews

Will Treasury Take a Look at Mortgage Servicing Compensation?

Perhaps, residential servicers should receive 33 basis points for servicing Fannie/Freddie loans, not 25 bps...


March 7, 2017 - IMFnews

How Much Longer Can Hedge Funds Hold on to their GSE Stock Wagers?

Fairholme extolled the GSE’s massive fourth quarter profits of almost $10 billion, and called them “indispensable” to the mortgage insurance industry…


March 6, 2017 - IMFnews

The Trump ‘Wire Tap’ Accusation and What it Means for the GSEs

Cowen notes: “…this latest flare up reinforces our view that Treasury is unlikely in 2017 to unilaterally change the profit sweep at Fannie and Freddie…”


March 3, 2017 - IMFnews

What We’re Hearing: What We Talk About When We Talk About Financial Lunacy / Should Apple Buy Fannie and Freddie? / The Coming Boom in Mortgage Delinquencies in the Washington, DC, Area / FannieMae.com?

Go figure: An "app" company called Snap that may never make a nickel is now worth more than Fannie Mae and Freddie Mac...


March 3, 2017 - Inside MBS & ABS

Fannie’s Second Front-End Credit Risk-Sharing Deal Much Larger than First, GSEs Mull Other Forms

Fannie Mae announced its second deal using credit insurance risk transfer on the front end of the transaction. Most of the government-sponsored enerprise’s CIRT transactions have involved insurance contracts on pools of loans that have already been securitized. The new front-end CIRT deal will shift a portion of the credit risk on about $15 billion worth of single-family loans, significantly larger than Fannie’s first test of the structure back in October, which involved about $3.7 billion of single-family loans. This CIRT, like the first one, will be...


March 3, 2017 - Inside MBS & ABS

How Much Longer Can Hedge Funds Hold on to Their GSE Stock Wagers?

Late last month, Fairholme Capital chief Bruce Berkowitz sent out a press release reassuring his shareholders that the hedge fund’s bet on owning the junior preferred stock of Fannie Mae and Freddie Mac will prevail, eventually. Among other things, the veteran equity-fund manager extolled the government-sponsored enterprises’ massive fourth quarter profits of almost $10 billion, called them “indispensable” to the mortgage insurance industry and reminded readers they continue to fulfill “their historic role of insuring adequate levels of liquidity to lenders of all sizes.” He also mentioned...


March 3, 2017 - Inside MBS & ABS

Agency MBS Production Fell Sharply in February, But Market in Early 2017 is Way Ahead of Last Year’s Pace

Fannie Mae, Freddie Mac and Ginnie Mae produced a combined $96.70 billion of new single-family MBS during February, a sharp 27.9 percent decline from the previous month, according to a new ranking and analysis by Inside MBS & ABS. February’s issuance was the lowest monthly volume since March of last year. All three agencies saw substantial declines in gross MBS issuance, led by Fannie’s 31.9 percent drop. Still, agency MBS production in the first two months of 2017 was...[Includes two data tables]


March 3, 2017 - Inside MBS & ABS

Strong Turnout at SFIG Vegas Conference, But Investors Still Largely Lack Confidence in Non-Agency MBS

The SFIG Vegas conference this week set another attendance record for the annual event, demonstrating strong interest in the structured finance market. While investors are comfortable with most asset classes of MBS and ABS, significant concerns remain about non-agency MBS. More than 6,700 people registered for the conference, according to Jade Friedensohn, director of programming at Information Management Network, which produced the conference along with the Structured Finance Industry Group. Potential investors in non-agency MBS continued...


March 3, 2017 - IMFnews

Agency MBS Production Takes it on the Chin in February: Down Almost 28 Percent

But the numbers need to be put into perspective: Agency MBS production in the first two months of 2017 was up 36.3 percent from the same period last year…


March 2, 2017 - Inside Mortgage Finance

House Budget Vote Suggests GOP to Keep Reform Of Dodd-Frank, CFPB, GSEs on Its Front Burner

The House Financial Services Committee, as part of the congressional budget process, this week voted on its budget views and estimates for fiscal year 2018, with an eye on changing the Dodd-Frank Act, the Consumer Financial Protection Bureau, and Fannie Mae and Freddie Mac. The committee’s report is intended as guidance for the House Budget Committee as it crafts its FY2018 budget legislation but is not binding. In reference to Dodd-Frank, the HFSC Republicans’ budget document stated...


March 2, 2017 - Inside Mortgage Finance

Defective and Fraudulent Mortgage Applications Rise as Less Risky Refinance Loans Dwindle

More defects and fraudulent information were found in mortgage applications in December and January, according to the First American Loan Application Defect Index. Analysts blame the increase on the dwindling share of less risky refinance transactions. January numbers show that the frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications increased 5.8 percent in January compared with December. “This month, the Loan Application Defect Index continued...


March 2, 2017 - Inside Mortgage Finance

Congress Focusing More on GSE Reform; Credit-Risk Transfer Deals Seen as a Model and Potential Deterrent

Calls from offices of members of Congress seeking information regarding reform options for the government-sponsored enterprises have increased recently, according to Andrew Davidson, president of Andrew Davidson & Co., an analytics firm. Speaking this week at the SFIG Vegas conference produced by Information Management Network and the Structured Finance Industry Group, Davidson said he has received “a surprising number of calls” from congressional staff regarding GSE reform. Fannie Mae and Freddie Mac have been...


March 2, 2017 - Inside Mortgage Finance

Mortgage Servicing Compensation Is an Issue That Won’t Die; Now Treasury May Weigh In

With servicing costs climbing the past five years, the issue of how much to pay residential loan processers is once again rearing its ugly head. And depending on who you talk to, the Treasury Department may take up the issue as well, especially since it controls the senior preferred stock of Fannie Mae and Freddie Mac. One industry advisor involved in the topic, speaking under the condition his name not be used, told...


March 2, 2017 - Inside Mortgage Finance

2016 Was a Big Year for Purchase-Mortgage Lending, But the Refinance Market Was Booming as Well

Purchase-mortgage originations in 2016 hit their highest level since before the housing market crash, including a solid uptick in first-time buyer activity, according to a new Inside Mortgage Finance ranking and analysis. Revised estimates show a total of $1.021 trillion of home-purchase mortgages were originated in 2016, a 10.5 percent increase from the previous year. It marked the biggest volume of purchase-money lending since 2006 even though the purchase share of new originations declined. That’s...[Includes five data tables]


March 2, 2017 - IMFnews

Short Takes: PennyMac Files to Sell Preferred Shares / A Nice Dividend for Investors / Brian Wornow the Head of FinServ for KBW / Layoffs at a Mortgage Wholesaler? / Prestwick Selling Freddie MSRs

Recently, KBW hired Wall Street veteran Brian Wornow as managing director in charge of its financial services group...


March 2, 2017 - IMFnews

New MSR Deals From Phoenix Capital, MountainView Servicing Group

The MountainView package has no delinquencies, average FICO scores of 753 and a weighted average LTV of 72 percent.


March 1, 2017 - IMFnews

Fannie/Freddie Retained Portfolios Continued Shrinking in 2016 – Mostly by Shedding MBS

Fannie Mae cut its portfolio of Fannie MBS by 42.9 percent last year...


February 28, 2017 - IMFnews

Mortgage REIT Holdings of Residential MBS Fell Slightly in 4Q16

Annaly padded its lead as the top REIT MBS investor, thanks, in part, to its acquisition of Hatteras Financial in the third quarter of 2016…


February 28, 2017 - IMFnews

Picking up a Head of Steam: Congressional Interest in GSE Reform?

However, GSE reform will require a bipartisan effort and already other priorities are developing…


February 27, 2017 - IMFnews

Short Takes: Letting the Single-Security Flag Fly at SFIG / Lots of Emails Regarding the GSEs / $10B of GSE Preferred Sold the Year Before Seizure / Maloni Responds / Moving (In)to Montana / A New Hire for Selene

Bradd Gold of Au Consulting LLC noted that in the year prior to their federal takeover, Fannie and Freddie sold $10 billion of GSE junior preferred.


February 27, 2017 - IMFnews

Incenter Selling Fannie/Freddie Mortgage Servicing Rights

California mortgages account for the large chunk of collateral at 41.2 percent. Texas is a distant second at 10.4 percent.


February 27, 2017 - IMFnews

SFIG Vegas Show Opens, Record Attendance Likely, but Plenty of Uncertainty for Non-Agency MBS Market

The nonagency/nonprime MBS market is expected to get some attention at the SFIG show, but not much…


February 27, 2017 - IMFnews

GSE Seller Buybacks Tumbled to Record Low in 4Q16

For the full year, GSE seller repurchases totaled just $1.101 billion, a record annual low…


February 24, 2017 - Inside The GSEs

GSE Roundup

Freddie’s First NPL Sale of 2017. Freddie Mac announced its first nonperforming loan sale of the year last week, a $759 million auction of seasoned non-performing residential whole loans. The NPLs are currently serviced by Nationstar Mortgage LLC and Specialized Loan Servicing LLC. This is also Freddie Mac’s second multi-servicer NPL transaction. The NPLs are being marketed via five pools: four Standard Pool Offerings and one Extended Timeline Pool Offering, which targets participation by smaller investors, including non-profits and minority and women-owned businesses. HARP Refi Volume Slow in 4Q. The Federal Housing Finance Agency reported that 13,220 borrowers refinanced their mortgages through the Home Affordable Refinance Program...


February 24, 2017 - Inside The GSEs

Wells Says Structural Changes to STACR are a Prudent Move

A structural change in Freddie Mac’s popular Structured Agency Credit Risk transfer program gives Freddie less credit protection at higher loss levels, according to an analysis of the GSE’s first STACR deal of the year. So far, this year, Freddie has priced STACR Series 2017-DNA1 on Jan. 31 and STACR Series 2017-HQA1 on Feb. 14. The first deal of the year was an $802 million STACR debt notes offering referencing mortgages with low loan-to-value ratios ranging from 60 to 80 percent. This particular deal has a reference pool of single-family mortgages with an unpaid principal balance of about $33.9 billion.


February 24, 2017 - Inside The GSEs

New Govt. Documents Released, Talks of Treasury Sweep Plans

Several more documents were released in relation to an ongoing GSE shareholder case out to prove that the government knew Fannie Mae and Freddie Mac were on the path to profitability at the time the Treasury sweep was put in place.The release came after a judge rejected the government’s appeal of an earlier ruling requiring it to turn over a slew of documents for which it had asserted various forms of privilege in Fairholme Funds vs. United States, et al. All of the latest documents are from 2012. They include a July 20, 2012, memo stating “thoughts on how to signal a plan to amend the preferred stock purchase agreements,” from Treasury...


Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.

47%

Yes, by a lot.

5%

Yes and, heck, we may even do non-QM lending.

14%

No, not at all.

26%

No and we may even tighten credit.

7%