Ginnie Mae Issuance

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

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]


November 6, 2014 - Inside Mortgage Finance

The Current M&A Craze – It’s All About Originations; Ocwen a Seller of MSRs?

Of the dozen or so mortgage company sales that have been announced over the past two months, just one has involved a servicing portfolio of any size and even that transaction – $1.5 billion of mortgage servicing rights owned by Continental Home Loans – was small. In today’s merger and acquisitions market, it’s all about building loan origination capacity as buyers such as Freedom Mortgage, LoanDepot and Guild Mortgage try to keep growing. Moreover, this thirst for production comes...


November 6, 2014 - Inside Mortgage Finance

Nonbanks Continue Expanding Their Share of Mortgage Servicing Market at Evolutionary Pace

Nonbank mortgage servicers continued to gradually expand their share of the market during the third quarter of 2014, but the pace has clearly slowed. Nonbank institutions accounted for 27.2 percent of the $7.389 trillion of servicing controlled by the top 50 servicers in the industry, according to a new Inside Mortgage Finance ranking and analysis. The nonbank share of the top 50 in combined servicing was up from 26.8 percent at the midway point in 2014 and 24.0 percent in September 2013. The nonbank expansion has slowed...[Includes two data charts]


October 31, 2014 - Inside MBS & ABS

New Capital, Liquidity Tests are Ginnie Mae’s Insurance Against Potential Issuer Failure, Losses

The new net worth and liquidity requirements and other policy changes announced by Ginnie Mae last week should be viewed in light of the agency’s increased servicer risk stemming from a “new breed” of entities that have entered the market in the wake of the financial crisis, according to analysts. The sharp increase in the share of non-bank servicers has significantly altered Ginnie Mae’s risk exposure to servicer issues, noted analysts at Barclays. “Specifically, the liquidity and capitalization of these non-bank servicers, which are not subject to such requirements for bank servicers, leaves Ginnie Mae exposed to servicing disruptions,” they said. In 2015, Ginnie Mae will adjust...


October 24, 2014 - Inside FHA Lending

VA, Rural Housing Guarantees Surge in 2014

While the FHA’s share of the primary insurance market has dropped significantly since premiums were hiked in early 2013, the VA program and the rural housing loan program run by the Department of Agriculture are going strong, according to agency officials. During a panel discussion at the Mortgage Bankers Association annual convention this week, VA and Rural Development executives said that both agencies have been quietly building mortgage market share. Jeffrey London, deputy director of the VA’s loan guaranty service, reported that purchase-mortgage VA loan originations were up 11 percent in fiscal 2014, with 40 percent of the business being first-time homebuyers. Of that group, 80 percent took no-downpayment VA loans, the biggest selling point in the program, along with its relatively low costs. In earlier remarks, Housing and Urban Development Secretary Julian Castro revealed that ...


October 24, 2014 - Inside FHA Lending

GNMA Raises Net Worth, Liquidity Tests

Ginnie Mae this week provided new details to the long-anticipated plan for increased issuer net worth and liquidity and a new performance scoring method for issuer activity – changes that could adversely affect small issuers and portfolio servicers. In remarks at the Mortgage Bankers Association’s annual convention in Las Vegas, Ginnie Mae President Ted Tozer said the changes are part of a larger effort to ensure the continuing flexibility and availability of the agency’s mortgage-backed securities program to as many entities as possible. New types of issuers and counterparties have entered the agency-backed MBS market in the wake of the financial crisis, which called for adjustments and tailored approaches to the evolving housing finance market, Tozer noted. Tozer said both policy changes and staff expertise will ensure the success of ...


October 24, 2014 - Inside MBS & ABS

Ginnie Updates Issuer Eligibility; Fannie and Freddie Continue With Do-It-Yourself Reform

Fannie Mae, Freddie Mac and Ginnie Mae have been around for decades and they dominate the residential MBS market, but the agencies are not standing still. Pushed by their federal conservator, Fannie and Freddie are rebuilding their securitization infrastructure and trying to reinvent how they do business with mortgage sellers. At the annual convention of the Mortgage Bankers Association this week, the Federal Housing Finance Agency announced an agreement in principle on changes to the representations-and-warranties framework used by the government-sponsored enterprises. Ginnie officials disclosed new issuer eligibility standards and performance evaluations. “GSE reform does not mean...


October 10, 2014 - Inside FHA Lending

Ginnie Mae MBS Issuance Increases in 3Q14

Ginnie Mae issuance for the first nine months of 2014 totaled $207.5 billion as government-backed purchase-mortgage activity picked up in the third quarter, according to an analysis of agency data. New issuances rose 19.8 percent from the second quarter. FHA loans accounted for $116.9 billion of new Ginnie Mae issuances while VA and the Rural Housing Development funneled $75.9 billion and $14.2 billion, respectively, of new loans into Ginnie Mae pools. Mortgage securities backed by home-equity conversion mortgages are not included. Purchase mortgages totaling $140.6 billion comprised the bulk of new issuances over the nine-month period while the share of refinances totaled $49.8 billion. Modified loans accounted for $17.1 billion. Most of the FHA and VA loans originated during the first nine months came through the ... [ 2 charts ]


October 10, 2014 - Inside MBS & ABS

San Francisco Board Prepares for Litigation as It Eyes Eminent Domain for Underwater Mortgages

Supporters of using eminent domain to resolve underwater but performing non-agency mortgages succeeded in placing their proposal back on the front burner in California this week. On Tuesday, the San Francisco Board of Supervisors unanimously voted to convene in closed session later this month with the city attorney’s office for advice on “anticipated litigation relating to the potential negotiation or adoption of a joint powers agreement with the city of Richmond [CA] to establish a homeownership stabilization authority to assist homeowners with troubled mortgages.” The board opted...


Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

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