Freddie Mac

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

August 27, 2014 - IMFnews

Moody’s, Urban Institute Want Changes to FHFA’s MI Eligibility Rules

In early July, the FHFA unveiled the new MI eligibility standards, which propose – for the first time – risk-based capital rules that are tied to a measurement called “available assets.”

August 26, 2014 - IMFnews

Short Takes: Will the FHFA Extend the Comment Period for MI Firms? / Some Consumers Believe HARP is a Scam / Freddie (and Fannie) Got Taken by a Wolf / Bill Erbey (Indirectly) Owns a Much Larger Stake in Altisource

Indirectly, Bill Erbey controls about 5.9 million shares of Altisource through a limited liability company called Salt Pond Holdings.

August 26, 2014 - IMFnews

FHFA IG Places Blame for TBW Scandal on Regulators, Counterparties, Investors

The FHFA IG claims a Fannie Mae executive back in 2000 discovered that TBW had pledged the same collateral – mortgages – to both Fannie and another company. But then Fannie took no action until two years later.

August 25, 2014 - IMFnews

Short Takes: Altisource to Hire 500 Workers…in India / Altisource Investors Not Happy? / Phoenix Capital Stays Busy with MSR Deals / Atlanta FHLB Joins MPF Program / 360 Mortgage Hires Western Regional Manager

Altisource shareholders are not happy campers these days. The firm’s stock is trading at $91 compared to a 52-week high of $171.

August 25, 2014 - IMFnews

In Settling with the FHFA, Goldman Will Buyback PLS for $3.15 Billion

According to the Inside Mortgage Finance MBS Database, the original unpaid principal balance of the PLS deals in question was almost $40 billion.

August 25, 2014 - IMFnews

Subsidiary of Publicly Traded Firm Selling $1.1 Billion of MSRs

Written bids are due by Wednesday, Aug. 27 with the closing coming by the end of October. LoanCare is listed as the subservicer.

August 25, 2014 - IMFnews

Most of the Mortgage Industry Does Not Want a G-Fee Hike

SIFMA said the FHFA should view g-fees not as “static amounts,” but rather as compensation for credit enhancements that may vary from time to time.

August 22, 2014 - Inside The GSEs

Fannie, Freddie MBS Business Activity Increases in July

Fannie Mae and Freddie Mac in July posted a combined increase in the volume of single-family mortgages they securitized, according to a new Inside The GSEs analysis.Fannie and Freddie issued $57.9 billion in single-family mortgage-backed securities in July, a 12.3 percent increase from June. However, July’s MBS issuance was down 59.0 percent on a year-to-date basis.

August 22, 2014 - Inside The GSEs

Enterprise Endnotes

Fannie, Freddie Subprime Holdings Continue to Run Off. The GSEs’ holdings of nonprime mortgages continue to decline, largely due to runoff, according to a new analysis by Inside Nonconforming Markets, an affiliated publication. Fannie Mae and Freddie Mac held a combined $252.2 billion of Alt A and subprime mortgage assets at the end of the second quarter, down 18.3 percent from 2Q13. Purchased/guaranteed mortgages account for 71.9 percent of the holdings, with the rest of the GSEs’ nonprime exposure in non-agency mortgage-backed securities.

August 22, 2014 - Inside The GSEs

Report: Don’t Expect GSE Reform Until At Least 2016

There is little to no chance of legislative GSE reform occurring until at least 2016, so market participants should plan accordingly, predicted a report issued last week. Despite two separate bills awaiting a floor vote in both the House and Senate, Kroll Bond Rating Agency said there’s little chance housing reform legislation will garner enough support to pass until after the next presidential election.

August 22, 2014 - Inside The GSEs

FHFA Seeks Feedback on Proposed Strategic Plan for 2015-2019

Fannie Mae’s and Freddie Mac’s conservator and the regulator of the Federal Home Loan Bank system is requesting input on its strategic plan for the next four years. The Federal Housing Finance Agency is seeking feedback on its draft document “FHFA Strategic Plan: Fiscal Years 2015-2019.” The plan sets the agency’s priorities in its oversight of the two GSEs and the 12 FHLBanks. The plan lists three strategic goals: ensure safe and sound regulated entities; ensure liquidity, stability and access in housing finance; manage the enterprises' ongoing conservatorships.

August 22, 2014 - Inside The GSEs

FHFA’s Proposed G-fee Increase Enjoys Little Industry Support

As the Federal Housing Finance Agency mulls over a proposed increase in fees charged by the GSEs to provide guarantees on mortgage-backed securities, so far those advocating for a g-fee hike remain in the minority. The Securities Industry and Financial Markets isn’t flatly opposed to an increase in g-fees under certain conditions but policy makers should “consider the broader context” in which the guaranty fee will be raised.

August 22, 2014 - Inside The GSEs

New Suit By Common GSE Investors Seeks Injunction of Profit Sweep

Pershing Square Capital Management – reportedly the largest investor in Fannie Mae and Freddie Mac common shares – filed two separate lawsuits last week demanding the federal government cease and desist its “net worth sweep” of GSE profits. The New York hedge fund contends that the government’s action not only illegally shortchanges investors of the GSEs’ common, it also amounts to a de facto liquidation of the two firms, according to its first complaint filed with the U.S. Court of Claims in Washington. The first complaint lists the U.S. as a defendant, as well as Fannie and Freddie as nominal defendants.

August 22, 2014 - Inside The GSEs

GSE Shareholder Group Calls on FHFA to End Conservatorship

The head of a group of disenfranchised Fannie Mae and Freddie Mac investors has called on Federal Housing Finance Agency Director Mel Watt to end conservatorship of the two GSEs and undo what stakeholders consider the illegal government “net worth sweep” of Fannie and Freddie profits. Tim Pagliara, executive director of Investors Unite, followed Watt to Atlanta to seek a meeting with and to put pressure on the director to acknowledge the concerns of GSE shareholders.

August 22, 2014 - Inside The GSEs

FHFA Proposed Single GSE Security First Step Toward ‘Fannie Mac’?

The Federal Housing Finance Agency’s request for public comments last week on the structure for a proposed GSE security has some industry insiders wondering if this is the prelude to the eventual consolidation of “Fannie Mac.” The implementation of the single security issued and guaranteed by Fannie Mae and Freddie Mac would be part of a “multi-year initiative” to build a common securitization platform.

August 22, 2014 - IMFnews

What We’re Hearing: Banks to FDIC: Drop Dead / FHA and Ginnie Get a Chunk of the Massive BofA Settlement / Should DOJ Sue a Dead Subprime Executive? / LO Profession in Bifurcation Mode / The Pain Caused by Ocwen / DocMagic Gets CFPB Contract

A fair question to ask is this: If DOJ goes after Mozilo, why not go after the owners of Ameriquest/Argent which created so much of the faulty subprime product that Greenwich securitized?

August 20, 2014 - IMFnews

GSE Shareholder Group Gets Face Time with FHFA’s Watt, But…

Investors Unite now boasts almost 1,000 members, which include both common and preferred stakeholders in Fannie Mae and Freddie Mac.

August 20, 2014 - IMFnews

$7 Billion-Plus in MSRs Up for Grabs Through Three Auctions

Servicing advisors told IMFnews that many of the bulk deals they have been seeing of late are $4 billion in size or under.

August 19, 2014 - IMFnews

Pershing’s Second GSE Lawsuit Seeks ‘Net Worth Sweep’ Injunction

Unlike the various 20 lawsuits filed against the government, Pershing Square Capital Management's legal actions focus on common shareholders.

August 18, 2014 - IMFnews

Subprime Holdings at Fannie and Freddie Continue to Run Off

Fannie and Freddie held a combined $252 billion in Alt A and subprime mortgage assets at the end of June, down 18.3 percent from the second quarter of 2013.

August 15, 2014 - Inside FHA Lending

Private MIs, VA Overtake Faltering FHA Program

Weighed down by high premium costs and lender overlays, FHA lost more primary market share to private mortgage insurers and the Department of Veterans Affairs during the second quarter of 2014. Although June’s FHA endorsement numbers have not yet been released, the trend seen in April through May, along with Ginnie Mae securitization data, suggest that FHA business was up a modest 11.5 percent from the first quarter. But that increase provides no comfort to FHA, which saw its market share go down to 33.7 percent, a six-year low. From April to May, FHA forward endorsements rose by 2.4 percent to $10.61 billion. On a year-over-year basis, however, endorsements were down from $21.9 billion in May 2013, according to an Inside FHA Lending analysis of agency data. On the other hand, private MI companies reported a total of $44.19 billion of new insurance written (NIW) during the ... [2 charts]

August 15, 2014 - IMFnews

Pershing Square Sues U.S., GSEs for ‘Brazen’ Profit Sweep

The hedge fund contends the government’s actions short change investors and amounts to a de facto liquidation of Fannie Mae and Freddie Mac...

August 15, 2014 - IMFnews

What We’re Hearing: Maybe Ocwen Should Go Private / A $750 Million Stock Buyback for Ocwen? / Why It’s Hard to be Bullish on the Nonbank ‘Big Three’ / Who the Heck is Privlo? / No Wonder the MBA Likes Mel Watt

We only bring up the “going private” issue because class action attorneys have finally woken up to the fact that Ocwen’s shares have been clobbered over the past year...

August 15, 2014 - Inside MBS & ABS

GSE MBS Portfolios Continued Shrinking in 2Q14 Fueled by Bigger Declines in Non-Agency Holdings

Fannie Mae and Freddie Mac continued their conservatorship march toward smaller retained mortgage portfolios during the second quarter of 2014, with most of the focus on non-agency collateral, according to a new analysis by Inside MBS & ABS. The two government-sponsored enterprises ended June with a combined $872.7 billion in mortgage-related holdings, down 3.3 percent from the previous quarter. Compared to a year ago, their combined portfolio was down 19.7 percent. It was down 45.2 percent from the $1.592 trillion they held in the fourth quarter of 2008 shortly after the two were put in conservatorship. The biggest decline has been...[Includes one data chart]

August 15, 2014 - Inside MBS & ABS

SIFMA Bucks Industry Trend, Calls For Slow Increase of Fannie, Freddie MBS Guaranty Fees

The Federal Housing Finance Agency should act now to slowly increase Fannie Mae’s and Freddie Mac’s guaranty fees, according to the Securities Industry and Financial Markets Association. SIFMA’s tempered support of a proposed government-sponsored enterprise g-fee increase runs contrary to the position held by much of the rest of the industry – that now is not the time. “We encourage...

August 15, 2014 - Inside MBS & ABS

Agencies Propose ‘Single Security’ for Fannie Mae, Freddie Mac TBA Issuance and Resecuritizations

The notion of a common pass-through MBS issued by Fannie Mae and Freddie Mac was formally put in play this week, as the Federal Housing Finance Agency solicited comment on a proposed “single security” for the two government-sponsored enterprises. The Mortgage Bankers Association has been pushing the concept for several years, and it made it onto the FHFA’s formal agenda for the GSEs in 2014. Proponents say it would improve liquidity in the market and level out Freddie’s pricing disadvantage. Under the FHFA proposal, the new common MBS would adopt...

August 15, 2014 - IMFnews

REITs Increased MBS Holdings During Second Quarter as Fed Pared Back its Presence

The mortgage REIT industry held $286.3 billion of MBS at the end of June, according to exclusive figures compiled by Inside MBS & ABS.

August 15, 2014 - IMFnews

SIFMA Bucks Industry Trend, Calls for Increase in Fannie/Freddie G-Fees

SIFMA's call for higher guaranty fees might sound like heresy in the mortgage industry, but the trade group clearly wants the non-agency market to revive.

August 14, 2014 - Inside Mortgage Finance

Fannie, Freddie Post $5.0 Billion Profit in 2Q14 As GSEs ‘Substantially Achieve’ Repurchase Goals

Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year as the two government-sponsored enterprises reported a significant downshift in repurchase activity. Through the first six months of the year, GSE profits were down nearly 81.7 percent from the first half of 2013. But Fannie and Freddie reaped huge profits in 2013 through hefty legal settlements, the capture of deferred tax assets and seller buybacks. “When you look back on 2013, our goal was...

August 14, 2014 - IMFnews

Short Takes: On the Other Hand, PHH Will Buy MSRs Too / Falling out of Love with FHA / Growth Good, Shrinkage Bad / Radian Declares a Measly Dividend / Hedge Fund Takes Big Position in Radian

Senator Investor Group now owns a 6.28 percent stake in Radian, a top ranked mortgage insurer.

August 14, 2014 - IMFnews

GSE Shareholder Group Wants FHFA to End Conservatorships Now

The Investors Unite chief said Watt has publicly acknowledged that he possesses the Congressional authority to end the GSE conservatorships under the Housing and Economic Recovery Act of 2008.

August 13, 2014 - IMFnews

Short Takes: Home Equity Lending Becoming Red Hot? / ICBA’s Fine Not-So-Fine with a Single GSE MBS / MSR Mark-Ups Slow / Yet Another Lender Launches a Builder Unit / Hires LinkedIn Exec

Wells Fargo, the nation’s largest servicer, has assigned an 80 basis point value to its residential MSR portfolio, but the nation’s number-two servicer, JPMorgan Chase, has its MSRs booked at 106 bps…

August 13, 2014 - IMFnews

Mortgage Buyback Demands Have Peaked but Remain a Big Headache

“The government presumably feels emboldened from the decisions that it’s been getting, and we anticipate that those will continue in the near future,” one mortgage buyback expert said.

August 13, 2014 - IMFnews

When Will the ‘Single’ GSE MBS Be Ready? Answer: 18 Months at the Earliest

The CSP, formally known as Common Securitization Solutions LLC, does not have a chief executive office or chairman.

August 12, 2014 - IMFnews

FHFA Steps Up Creation of Single GSE MBS, But No ‘Comingling’ at First

Fannie-backed MBS, in general, trade better than Freddie participation certificates (PCs), which has resulted in guaranty fee pricing differentials between the two.

August 12, 2014 - IMFnews

Fannie and Freddie Grew Securitizations by 12 Percent on a Sequential Basis

The privately held Quicken grew its Fannie/Freddie MBS volume by 18.5 percent from June.

August 8, 2014 - Inside The GSEs

Fannie, Freddie Post ‘Normal’ 2Q Profit Minus One-Time Boosters

Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year. Compared to the first half of 2013, GSE profits were down nearly 82 percent, though both companies posted strong earnings during the three-month period ending June 30, 2014. Both GSEs are coming off a banner 2013 when each company’s earnings were super-charged by several one-time items – including the capture of each company’s deferred tax allowance, and numerous non-agency lawsuit settlements.

August 8, 2014 - Inside The GSEs

Enterprise Endnotes

Freddie Announces 9th Multifamily Securities Offering of 2014, K-F04. Freddie Mac announced this week a new offering of Structured Pass-Through Certificates or K Certificates, backed exclusively by LIBOR-based, floating-rate multifamily mortgages with five- and seven-year terms. The GSE expects to offer approximately $1.2 billion in K Certificates, which priced on Aug. 6 and is expected to settle on or about August 25. This is Freddie’s ninth K Certificate offering this year. The GSE said it also reached an important milestone of securitizing more than $80 billion in multifamily mortgages through its K-Deal program.

August 8, 2014 - Inside The GSEs

FHFA, Goldman Talking Deal After Judge Rules in Part For Agency

It could cost Goldman Sachs between $800 million and $1.25 billion to resolve government claims that it sold faulty mortgage-backed securities to Fannie Mae and Freddie Mac leading up to the financial crisis, according to recent reports. Goldman Sachs is currently negotiating with the Federal Housing Finance Agency, which has recovered approximately $16.1 billion in agreements with other banks with respect to legacy MBS sold to the GSEs.In September 2011, the FHFA filed 18 separate lawsuits against some of the nation’s biggest banks, accusing them of misrepresenting some $180 billion in toxic subprime MBS.

August 8, 2014 - Inside The GSEs

Experts: Buybacks Will Continue As GSE Regulators ‘Emboldened’

Mortgage buybacks and indemnifications may be off their peak in terms of volume, but they are widely expected to continue for the foreseeable future, especially for Fannie Mae and Freddie Mac loans, according to experts during a webinar sponsored by Inside Mortgage Finance Publications last week. Amanda Raines, a partner in the Washington, DC, office of the BuckleySandler law firm, told webinar participants that more buybacks are definitely on the way. On the Fannie /Freddie front, the attorney pointed out that despite recent settlements, the Federal Housing Finance Agency’s Office of Inspector General encouraged the continued pursuit of buyback claims and repurchase rights.

August 8, 2014 - Inside The GSEs

FHFA Extends GSE Guaranty Fee Input Deadline Until Sept. 8

Less than a week before its deadline, the Federal Housing Finance Agency announced last week that it is extending the comment period for guaranty fees charged by Fannie Mae and Freddie Mac. In June, the FHFA issued a call for public comment on how the GSEs should calculate g-fees and whether the Finance Agency should proceed with a 10 basis point g-fee hike announced last year. In one of his first acts as FHFA Director in January, Mel Watt ordered the g-fee hike postponed pending further study.

August 8, 2014 - Inside The GSEs

Pressure Mounting on FHFA to Lift GSE Principal Reduction Ban

Federal Housing Finance Agency Director Mel Watt so far is holding the line on Fannie Mae’s and Freddie Mac’s blanket prohibition on principal reduction, but mounting pressure from progressives in and out of Congress have industry observers predicting a policy shift soon. Since taking office as the FHFA’s head in January, former Rep. Mel Watt, D-NC, has so far been a disappointment to his former Democrat colleagues and advocates who believed he would reverse the agency’s principal reduction stance set by former Acting Director Edward DeMarco.

August 8, 2014 - Inside The GSEs

Judge Orders BofA to Pay $1.27B For ‘Hustle’ of Fannie, Freddie

A federal judge in Manhattan last week ordered Bank of America to pay a $1.27 billion penalty for losses suffered by Fannie Mae and Freddie Mac from Countrywide Financial’s “Hustle” program for pumping dubious Alt A loans to the GSEs. The bank also is reportedly nearing a settlement with the Justice Department over other charges. Last October, the DOJ and the Securities and Exchange Commission successfully proved in court that Fannie Mae and Freddie Mac lost some $850 million from thousands of loans acquired through Countrywide’s “high-speed swim lane” program – known as HSSL or “Hustle.”

August 8, 2014 - Inside The GSEs

Freddie’s Sale of Distressed SF Loans One-Off or More to Come?

In keeping with its strategy to reduce its holdings of less-liquid assets, Freddie Mac announced last week the GSE’s first sale of what it calls “deeply” delinquent loans. It remains to be seen if the sale of the $659 million package of distressed single-family mortgages from its portfolio is a one-off or the first of more to come. Asked whether more non-performing loan auctions might be ahead, a company spokesman declined to comment.

August 8, 2014 - Inside MBS & ABS

ICE Seeks Partnership with MERS to Expand Into Mortgage Derivatives Clearing, Trading

Intercontinental Exchange (ICE), a global network of exchanges and clearing houses and a top energy trader, is reportedly seeking to gain a foothold in the mortgage market via the Mortgage Electronic Registration System (MERS). ICE is negotiating a partnership agreement with MERSCorp Holdings, parent company of MERS, as part of its plan to add mortgages to its primary derivatives business, Bloomberg reported recently. Both ICE and MERS declined to comment on the story. According to the report, the Atlanta-based ICE has been studying...

August 8, 2014 - Inside MBS & ABS

Trustees Ask Court to Clear $4.5 Billion Settlement With Chase, Goldman Sachs Faces $1.2 Billion Hit

Mortgage trustees are still awaiting state court approval of a $4.5 billion settlement with JPMorgan Chase in relation to faulty residential MBS issued by the bank and the now-defunct Bear Stearns between 2005 and 2008. If approved by the New York State Supreme Court, the agreement would resolve representation and warranty claims as well as servicing claims related to loans in 330 mortgage securitization trusts, as well as claims over document delivery. In addition, the bank agreed to change its servicing procedures with respect to mortgage loans in the trusts. The proposed settlement does not resolve...

August 8, 2014 - Inside MBS & ABS

Freddie Sells $659M of ‘Deeply’ Delinquent Loans; First Transaction From Nonperforming Portfolio

Freddie Mac late last week revealed that it sold a $659 million package of what it calls “deeply” delinquent loans from its investment portfolio – a first for the government-sponsored enterprise. Co-advisers on the competitive bid auction include Bank of America Merrill Lynch and Credit Suisse Securities. Freddie noted that the sale was conducted at the end of July “and executed indirectly through Bank of America affiliates.” However, the GSE declined to identify the buyer or provide any pricing information. “The transaction was...

August 8, 2014 - Inside MBS & ABS

Fannie, Freddie Report ‘Normal’ Second Quarter 2014 Profits; Guaranty Fees Remain GSEs’ Revenue Engine

Fannie Mae and Freddie Mac are expected to pay some $5.6 billion to taxpayers based on “normal” second-quarter earnings that were not bloated by big-ticket tax breaks or large litigation settlements, the two government-sponsored enterprises announced this week. Once the two GSEs have made the latest Treasury payment in September, Fannie and Freddie will have returned about $218 billion to taxpayers for the approximately $188 billion in financial support the two firms received after being placed in government conservatorship in September 2008. Under the revised conservatorship agreement announced two years ago this month by the Federal Housing Finance Agency and the Treasury Department, any GSE net worth exceeding $3.0 billion is impounded...

August 8, 2014 - Inside MBS & ABS

Agency MBS Issuance Continued Climbing In July, Volume at Highest Since October

Fannie Mae, Freddie Mac and Ginnie Mae combined to produce $85.33 billion of single-family MBS in July, up 11.6 percent from the previous month, according to a new Inside MBS & ABS market analysis and ranking. July was the fourth straight monthly increase in agency MBS issuance after the market hit a 14-year low in March of this year. On a year-to-date basis, production was off 54.3 percent from the first seven months of 2013, and it will take a significant increase in issuance over the next five months for the market to hit the $1 trillion mark by the end of this year. All three agencies posted...[Includes two data charts]

August 7, 2014 - Inside Mortgage Finance

Agency Secondary Market Continued Gaining Steam in July; Little Change in Credit Standards

Fannie Mae, Freddie Mac and Ginnie Mae each recorded double-digit increases in single-family business in July, marking the fourth straight monthly gain, according to a new ranking and analysis by Inside MBS & ABS, an affiliated newsletter. The three produced $85.3 billion of single-family mortgage-backed securities last month, an 11.6 percent increase from June’s volume. The biggest increase was at Fannie, where production was up 12.6 percent for the month. The steady gains in production starting in April have not been...


Home-equity lending is beginning to show new life. My company (pick one):

Plans to enter this market over the next 12 months.


Is already making home equity loans and hopes to increase the offerings.


Is in the market but don’t expect much growth.


Is not making second liens and has no plans to do so.


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