Ginnie Mae Issuance

Browse articles from all of our Newsletters related to Ginnie Mae Issuance.

December 19, 2014 - Inside FHA Lending

Ocwen Reports FHA Buyouts from Ginnie II Pools

Ocwen Financial’s dry spell of acquiring nonperforming FHA loans out of Ginnie Mae mortgage-backed securities pools ended in early December with the nonbank servicing giant buying $253.1 million of delinquent product. Speculation, however, is mounting that Ocwen may not be long for the Ginnie Mae business, at least as a servicer. Ocwen’s disclosure of the “early” FHA buyouts came 11 days after it sold to an undisclosed buyer. In the first quarter, the company engaged in $646 million of early buyouts (EBO) and followed up with a $490 million EBO deal in the second quarter. However, EBO volume fell to zero in the third quarter. The December acquisition came in one fell swoop raising cautious, short-term expectations at Ocwen. “We expect to execute more such purchases in the next few months, as long as market conditions are favorable,” said Chief Investment Officer John Britti. As fast as it had ...


December 19, 2014 - Inside FHA Lending

OIG Recovers $300M from SunTrust Settlement

The Inspector General of the Department of Housing and Urban Development has announced a $300 million recovery from an earlier settlement between SunTrust Mortgage and the Department of Justice, Consumer Financial Protection Bureau, the HUD Office of the Inspector General, and 50 state attorneys general. The settlement resolved allegations of violations of FHA requirements in a joint complaint filed on June 14, 2014, by federal and state enforcement agencies. The suit against SunTrust alleged misconduct related to the origination and servicing of single-family residential mortgages. The problem loans were uncovered during a routine OIG review of targeted FHA-insured loans. According to the suit, as an FHA direct endorsement lender, SunTrust certified poorly underwritten loans for FHA insurance from January 2006 through March 2012, despite its knowledge of ...


December 19, 2014 - Inside MBS & ABS

In a Stalled MBS Market, Most of the Heavy Hitters Increased Their Holdings in 3Q14

The outstanding supply of agency single-family MBS continued to grow at a subdued pace during the third quarter of 2014, and the biggest investor classes did most of the heavy lifting funding the market, according to a new Inside MBS & ABS analysis. On the supply side, there were $5.632 trillion of single-family MBS guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae outstanding at the end of September. That was up just 0.4 percent from the previous quarter but had enough growth rings to show a 1.2 percent gain from a year ago. As has been the case for the past few years, the Ginnie MBS market grew...[Includes two data chart]


December 18, 2014 - Inside Mortgage Finance

President Obama Signs FY 2015 Omnibus Spending Bill, Some Rue Failure to Fund HAWK, FHA IT Upgrades

President Obama this week signed a comprehensive package of spending bills, providing funding to federal agencies through fiscal 2015 but missing two initiatives that would have toughened FHA enforcement and benefited new homeowners through enhanced housing counseling. The FY 2015 Consolidated and Further Continuing Appropriations Act is comprised of 11 funding bills for all federal agencies, including the Department of Housing and Urban Development. The bill provides...


December 18, 2014 - Inside Mortgage Finance

Transfers of Ginnie Mae Servicing Rights Fell Sharply in FY 2014; A Lack of Mega Deals?

Ginnie Mae approved the transfer of $66.06 billion in mortgage servicing rights during fiscal year 2014, a 56.5 percent tumble from the prior year as “mega” MSR transactions hit the skids. In fiscal 2012, just $25.39 billion in Ginnie product changed hands, but the market heated up significantly with $152.22 billion transferred in 2013. As always, transfers can be...[Includes one data chart]


December 12, 2014 - Inside MBS & ABS

Mortgage Securitization Rates Remain Below Par For Recent Years; More Options for Conforming

Mortgage securitization rates continued to trend lower through the first nine months of 2014 as Fannie Mae and Freddie Mac captured a smaller share of the conventional conforming market. A new Inside MBS & ABS analysis reveals that 70.4 percent of home loans originated during the first nine months of the year were packaged into MBS. For all of 2013, the securitization rate was 78.5 percent, and it reached as high as 84.4 percent in 2009, the first year following the financial meltdown. A key factor is...[Includes one data chart]


December 12, 2014 - Inside MBS & ABS

Mortgage REITs Report Decline in MBS Holdings During 3Q14; Analysts Not Ready to Give Up Yet

Naysayers have been predicting the demise of publicly traded mortgage real estate investment trusts for two years now and have been consistently disappointed. It’s hard to say whether things will be different this time around. According to figures compiled by Inside MBS & ABS, it appears that most REITs have been intentionally reducing their MBS holdings over the past several quarters, preparing for the day when bond prices finally fall. At Sept. 30, 16 publicly traded REITs held...[Includes one data chart]


December 5, 2014 - Inside FHA Lending

FHA to Share in Landmark BofA Settlement

The FHA and Ginnie Mae will share in the record-setting $16.7 billion settlement between Bank of America, the Department of Justice and certain other federal agencies and six states to resolve claims related to mortgage fraud and toxic mortgage-backed securities. The FHA will receive approximately $800 million and an undisclosed amount for consumer relief from BofA. The bank was accused of falsely certifying poorly underwritten loans for FHA insurance, resulting in huge losses for the agency. It is unclear how much Ginnie Mae’s share would be from the settlement. “As a direct endorser of FHA-insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta Lynch for the Eastern District of New York during the announcement of the global settlement in August. “In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not ...


December 5, 2014 - Inside MBS & ABS

Ocwen’s Ginnie Mae Buyouts Fell to Zero In 3Q14; Does it Spell Trouble for the Firm?

Ocwen Financial, which has been under intense regulatory scrutiny most of the year, stopped buying delinquent loans out of Ginnie Mae pools during the third quarter, according to a review of loan-level data by Inside MBS & ABS. The cessation of buyouts is unusual and has some MBS analysts scratching their heads, wondering whether more trouble could be afoot at the nation’s largest nonbank servicer. According to a new report from Barclays, the reduction in buyouts by Ocwen (as measured by prepayments) “could be due...[Includes one data chart]


December 5, 2014 - Inside MBS & ABS

Agency MBS New Issuance Tumbled in November As Purchase-Mortgage Activity Began to Slow

New issuance of Fannie Mae, Freddie Mac and Ginnie Mae single-family MBS fell 13.7 percent from October to November, according to a new Inside MBS & ABS analysis of loan-level data. The three agencies produced $80.23 billion of single-family MBS last month, the lowest amount since June. November also marked the first monthly decline in new production after seven consecutive monthly gains that started in April. All three agencies saw...[Includes two data charts]


December 4, 2014 - Inside Mortgage Finance

Refinance Originations Gained Some Momentum In 3Q14 as Purchase Market Began to Cool

Mortgage lenders have been chasing purchase-mortgage business since the refinance market started to subside early in 2013, but the refi sector showed considerable strength during the third quarter of this year, according to a new Inside Mortgage Finance ranking and analysis. Refinance originations increased by 21.4 percent from the second quarter to the third, with an estimated $136 billion in production volume. At the same time, purchase-mortgage originations rose by just 5.6 percent, to an estimated $209 billion. Refi lending is...[Includes five data charts]


November 26, 2014 - Inside Mortgage Finance

Correspondent Channel Saw Biggest Origination Volume Gains During Third Quarter of 2014

All three mortgage-production channels generated solid increases in new origination volume during the third quarter of 2014, but the correspondent market had a measurably bigger gain, according to a new Inside Mortgage Finance ranking and analysis. An estimated $105 billion of home loans were produced by correspondent originators during the third quarter, up 14.1 percent from the previous quarter. That lifted the correspondent share of new originations to 30.4 percent for the quarter, and 30.3 percent on a year-to-date basis. Correspondents are...[Includes four data charts]


November 21, 2014 - Inside FHA Lending

Around the Industry

Essent EVP to Retire in March. Adolfo Marzol, Essent Guaranty’s executive vice president, will step down, effective March 31, 2015, after five years with the company. VA Hybrid Adjustable-Rate Mortgage Pooling Eligibility. The Department of Veterans Affairs recently expanded the type of loans it will guarantee to include 7/1 and 10/1 hybrid ARMs. While Ginnie Mae’s Mortgage-Backed Securities Guide does not bar the inclusion of hybrid ARMs in Ginnie MBS, GinnieNET is not currently able to process these loans for pool processing. GinnieNET is being updated in order to accommodate VA 7/1 and 10/1 hybrid ARM pooling. Effective with issuances dated on or after Dec. 1, 2014, VA 7/1 and 10/1 hybrid ARMs will be eligible for pooling. CFPB Publishes Revised List of Rural and Underserved Counties. The Consumer Financial Protection Bureau has published its 2015 list of ...


November 21, 2014 - Inside FHA Lending

GNMA Eyes Stronger Oversight of Nonbank Issuers

Ginnie Mae is seeking comment on several proposed data collections, including those that would strengthen the agency’s ability to monitor participants in its mortgage-backed securities programs. Due to its growing concern over the influx of non-depository issuers into the single-family MBS program, Ginnie has proposed to collect more loan-level data to supplement the information already being collected and reported on a monthly basis. The proposed data collection consists of bankruptcy-related information (action type, case identifier, chapter type, bar date) as well as borrower-related information (borrower bankruptcy indicator, classification type, total mortgaged properties, counseling initiated indicator and credit score date). Other proposed new data include document custodian ID, type of insurance claim coverage, investor unpaid principal balance (UPB), adjustment to ...


November 21, 2014 - Inside FHA Lending

Congress Urged to Extend Expiring VA Loan Limits

Thousands of military veterans in high-cost areas may be deprived of VA’s home-loan guarantee benefits unless Congress extends the current VA loan limits before the end of the year. Those loan limits expire on Dec. 31, 2014. The VA loan limits are based on median home values estimated by the FHA, providing loans up to 125 percent of local area median price. The program does not set a cap on how much a veteran can borrow to finance a home purchase but it does limit the maximum amount it can guarantee to 25 percent of the current loan limit. Veteran and industry groups are urging Congress to make the VA limits permanent. A VA spokesperson said the agency was not asked for a position on the issue since Congress did not put forward any bill in any of the hearings this year. “But as a general rule, VA wants to maximize the opportunities ...


November 21, 2014 - Inside FHA Lending

HECM Portfolio Down to Negative in FY 2014

The economic value of the FHA’s Home Equity Conversion Mortgage legacy portfolio fell to negative $0.9 billion in fiscal 2014 due mainly to volatility in long-term house prices and interest rates, according to the latest independent actuarial report on the health of the Mutual Mortgage Insurance Fund. The latest result was a significant improvement from FY 2012, when the fund stood at negative $2.8 billion. In fiscal 2013, the HECM portfolio’s economic value of positive $6.5 billion appeared to be a whopping change from the previous year but that amount reflected a $4.6 billion cash infusion from the forward program and from the $1.7 billion mandatory appropriation, the report clarified. The report also showed a corresponding decline in the HECM capital ratio to negative 1.20 percent. Actuarial projections for fiscal 2015 place the HECM portfolio’s economic value at negative $1.1 billion. The fund’s capital resources for ...


November 21, 2014 - Inside MBS & ABS

Three Smaller Firms Set to Participate in NY Fed’s Pilot Program for Agency MBS Sales

The Federal Reserve Bank of New York announced this week that it selected three firms to participate in a pilot project to expand agency MBS sellers beyond the large primary dealers that work with the NY Fed. The pilot will last for about one year and the firms will participate as counterparties on the Open Market Trading Desk along with primary dealers in the Desk’s agency MBS operations. Brean Capital, Loop Capital Markets and Mischler Financial Group were selected to participate in the Mortgage Operations Counterparty Pilot Program, which was announced in August. The NY Fed didn’t disclose the number of firms that applied for the pilot but noted that the intent was always to work with a small number of firms to speed the pilot and keep costs low for the NY Fed. The pilot program participants are set...


November 21, 2014 - Inside MBS & ABS

Banks Report Modest Increase in MBS Holdings During 3Q14, Biggest Jump in Non-Agency MBS

Banks and thrifts held a combined $1.535 trillion of residential MBS at the end of September, a modest 0.6 percent increase from the previous quarter, according to a new Inside MBS & ABS analysis of bank call reports. Bank MBS holdings had spiked higher in the first quarter of this year, only to fall back in the following period. Compared to a year ago, the industry’s aggregate MBS portfolio was up 1.4 percent. Bank and thrift MBS holdings first crossed...[Includes two data charts]


November 7, 2014 - Inside FHA Lending

GNMA Servicing Improves Slightly in 3Q14

Ginnie Mae servicing bumped up slightly in the third quarter after an uneventful prior quarter as FHA purchase activity continued to drag, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose quarter over quarter by 1.4 percent. On an annual basis, volume increased 4.6 percent from the same period a year ago. Ginnie Mae servicers ended the quarter with a total of $1.48 trillion in unpaid principal balance, up from $1.46 trillion in the previous quarter. The top three servicers saw volume drop on both quarterly and year-over-year bases. Wells Fargo remained as top servicer of Ginnie Mae mortgage-backed securities, closing out the quarter with $422.4 million, down 0.8 percent from the previous quarter and down 0.6 percent from the prior year. The mega-servicer dominated the Ginnie market with a 28.6 percent market share. JPMorgan Chase carved out a 10.1 percent market share with ... [1 chart]


November 7, 2014 - Inside MBS & ABS

Servicer Rating Downgrades Could Spell Trouble for Ocwen’s MBS Business; Forced Transfers Not Likely, Yet

Rating agencies and Wall Street firms are paying close attention to the mounting regulatory problems at Ocwen Financial, fearful that more bad news could lead to servicing downgrades, which in turn could hamper its ability as a master servicer of MBS. One servicing advisor who has worked with Ocwen over the past two years noted that Fannie Mae and Freddie Mac pay close attention to the master servicing ratings of their counterparties. “You have to maintain minimum ratings and if you don’t – there’s going to be trouble,” he said. Downgrades, he added, can lead...


November 7, 2014 - Inside MBS & ABS

Agency MBS Issuance Rose to 12-Month High In October, Thanks to Surge in Ginnie Volume

New issuance of agency single-family MBS climbed for the eighth consecutive month in October, according to a new Inside MBS & ABS analysis and ranking. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $93.01 billion of new single-family MBS during October, up 2.1 percent from September. October production was the highest monthly volume for the market since October 2013, and reflected steady growth since new issuance bottomed out in March of this year. But the gain was...[Includes two data charts]


Poll

What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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