GSEs

Browse articles from all of our Newsletters related to GSEs.

December 8, 2016 - IMFnews

Short Takes: Putting Fannie and Freddie in Receivership? / Cashing Out of Gains on GSE Common. Anyone? / No Chatter at Lunch / Freddie’s CSP Milestone / Stonegate Hires Renovation Leader

Have any of the GSE stock speculators that bought on the cheap cashed out of their gains?


December 6, 2016 - IMFnews

Fair Housing Group Alleges Racial Bias in Fannie Foreclosure Upkeep

Fannie Mae added: “Through these actions we have demonstrated our continued dedication to providing quality care to all communities. And we remain firmly committed to continuing to provide such attention to our REO properties moving forward.”


December 5, 2016 - IMFnews

Short Takes: What Goes Up, Must Come Down (GSE Share Prices) / An ‘Underperform’ Rating / Buy Low, Sell High Accomplished / Urban Revitalization, a HUD Goal for Ben Carson? / New Hires for Alterra Home Loans

We know one mortgage official who bought “a bunch” of Fannie Mae shares at $1.38...


December 2, 2016 - Inside Nonconforming Markets

Trump Administration to Push for GSE Reform

Reform of the government-sponsored enterprises and a potential for more non-agency lending will be a priority for the Trump administration, according to the presumptive nominee to head the Treasury Department. President-elect Donald Trump is likely to nominate Steve Mnuchin to lead the Treasury. Mnuchin is a former partner at Goldman Sachs, founded the hedge fund Dune Capital Management and was among the investors that purchased IndyMac in 2009. In an interview this week on ...


December 2, 2016 - Inside Nonconforming Markets

Higher Loan Limits Take Small Non-Agency Bite

New loan limits for the government-sponsored enterprises in 2017 won’t have much of an impact on jumbo originations, according to an analysis by Inside Nonconforming Markets. The Federal Housing Finance Agency announced last week that the baseline conforming loan limit for Fannie Mae and Freddie Mac will increase in 2017, which will also boost the GSEs’ high-cost loan limit. The baseline conforming loan limit will increase to $424,100 in 2017, up from the $417,000 level it has ...


December 2, 2016 - IMFnews

What We’re Hearing: Will the GSE-Investing PE Firms Get Greedy? / Buy Low, Sell High? / How Plugged In is Mnuchin? / Will Trump Try to Bring White Collar Jobs Back Home Too? / The Strange Case of Nebraska and FHA Loan Limits / Meg Burns Gets Promoted

Will the GSE-investing PE firms blow it?


December 2, 2016 - Inside MBS & ABS

Can Former MBS Trader Steve Mnuchin Privatize the GSEs? And What About the Government MBS Guaranty?

Shortly after being nominated by President-elect Donald Trump to be his Treasury secretary, investment banker Steve Mnuchin midweek dropped a bombshell on the mortgage market: Ending the conservatorships of Fannie Mae and Freddie Mac would be a top priority. For the most part, the mortgage industry cheered the news, believing that at the very least, Mnuchin would preserve the federal guaranty on existing MBS and into the future. In fact, the market seems to be betting on it. But now comes...


December 2, 2016 - Inside MBS & ABS

Agency MBS Production Slowed in November as Fannie Issuance Fell Sharply from Previous Month

New production of agency single-family MBS in November was down 8.2 percent from the previous month, according to a preliminary Inside MBS & ABS analysis. Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $134.70 billion of single-family MBS in November, the lowest monthly total since July. A decline wasn’t unexpected: the housing market is on the downslope of its seasonal trend and rising mortgage interest rates are taking some of the steam out of the refinance market. What is a little unusual is...[Includes two data tables]


December 2, 2016 - IMFnews

Can a Former MBS Trader Successfully Privatize the GSEs? And What About the Government Guaranty?

Cowen & Co. believes there’s now a 65 percent chance that GSE reform will happen over the next two years.


December 2, 2016 - IMFnews

Agency MBS Production Slowed in November. Fannie Issuance Down Sharply

Freddie Mac posted a 45.9 percent market share for November – 10.2 percentage points higher than in the previous month…


December 1, 2016 - Inside Mortgage Finance

Mortgage Industry Parses Tea Leaves As Trump Begins Assembling Cabinet

The incoming administration of President-elect Donald Trump is likely a couple of months away from formal confirmation by the U.S. Senate of new cabinet officials. But at least one position has apparently been settled – that of Treasury secretary – and other names have been circulated, including that of a possible head of the Department of Housing and Urban Development. At the same time, Trump has begun fleshing out the personnel that will serve on various “landing teams,” which help ease the transitions at various federal agencies. On the cabinet level, the new president has decided...


December 1, 2016 - Inside Mortgage Finance

FHFA Increases Conforming Loan Limit Slightly For GSE Loans, Actual Impact is Debatable

The Federal Housing Finance Agency raised the maximum conforming loan limit for Fannie Mae and Freddie Mac mortgages in 2017 for the first time in a decade, but the impact on loan originations is questionable. Meanwhile, the FHA has not yet announced its 2017 loan limits. The baseline loan limit will go up for the first time since 2006, rising from $417,000 to $424,100. And the maximum high-cost loan limit for one-unit properties is climbing to $636,150, an increase of $10,650. The FHFA said that loan limits for the two government-sponsored enterprises will increase in all but 87 counties. An Inside Mortgage Finance analysis of Home Mortgage Disclosure Act data indicates...


December 1, 2016 - Inside Mortgage Finance

Light in the GSE Tunnel?

Steven Mnuchin, President-elect Donald Trump’s choice to be the next Treasury secretary, startled financial markets this week by indicating he would act quickly to bring Fannie Mae and Freddie Mac out of government conservatorship. “We’ve got to get Fannie and Freddie out of government ownership,” Mnuchin said during an interview with Fox News. “It makes no sense that these [two] are owned by the government and have been controlled by the government for as long as they have. In many cases, this displaces private lending in the mortgage markets, and we need these entities to be safe.” Mnuchin, a former Goldman Sachs executive who bought the failed IndyMac Bank and resurrected it as OneWest, continued...


December 1, 2016 - Inside Mortgage Finance

Trump Administration, Republican Control of Congress Present Mixed Bag for Mortgage Industry Participants

Lenders and servicers are likely to see some regulatory relief in the coming years though federal support for the housing market could also be reduced, according to officials at the Mortgage Bankers Association. The MBA’s Mortgage Action Alliance recently hosted a call with MBA officials providing projections for how the Trump administration and Republican control of Congress will impact the mortgage industry. “Things that were deemed impossible before the election are now in play,” said Meghan Sullivan, the MBA’s Senate Republican lobbyist. She said...


December 1, 2016 - IMFnews

A Done Deal: Fannie Mae Sells Its DC Headquarters – for $89 Million

All three buildings hit the market in October 2015. According to records from the District of Columbia’s Office of Tax and Revenue, the parcels were once valued at almost $200 million.


December 1, 2016 - IMFnews

GSE Common Once Deemed Worthless, Now Has a ‘Market Cap’ of $43.15 Billion

Based on current trading values, Fannie common now has a market capitalization rate (share price multiplied by number of shares) of $28.01 billion. Freddie common is valued at $15.14 billion.


November 30, 2016 - IMFnews

Short Takes: High Hopes for GSE ‘Recap and Release’ / Mnuchin Will be Confirmed / Another Mortgage Deal for Incenter LLC / Arch in Huge Debt Offering / What’s $20 Trillion Among Friends?

In case you haven’t noticed: the national debt is ready to crack the $20 trillion mark – almost twice the dollar volume of outstanding residential debt in the United States.


November 30, 2016 - IMFnews

GSE Single-Family Business Slumped in October, Credit Box Unchanged

Expanding the credit box will be a major theme in the GSEs’ priorities for 2017, according to the FHFA.


November 30, 2016 - IMFnews

Incoming Treasury Chief Mnuchin: Resolving Fannie and Freddie a Top Priority. Share Prices Soar!

As IMFnews went to press Wednesday, Mnuchin said in a Fox TV interview that resolving Fannie and Freddie will be a top priority.


November 28, 2016 - IMFnews

Short Takes: Waiting on Doctor Carson (for HUD Secretary) / Wells Fargo Continues its Dominance in Two Channels / The Worth of GSE Common? / Watching the 10-Year / Moody’s on Primary Capital

Is the 10-year bond in for a massive correction? Maybe, maybe not...


November 28, 2016 - IMFnews

Investors Continue to Bid Up the Share Price of GSE Common. Can it Last?

Fannie Mae common has a “market cap” of $17.68 billion while Freddie is valued at $9.79 billion…


November 25, 2016 - Inside The GSEs

GSE Roundup

FHFA 2017 Multifamily Lending Caps Unchanged: The Federal Housing Finance Agency announced that the 2017 multifamily lending caps for Fannie Mae and Freddie Mac will remain at the same level they were for 2016. Each will be subject to a cap of $36.5 billion of multifamily purchase volume. The FHFA expects the multifamily finance market to be roughly the same as it was in 2016. Fannie Bans Plywood in Foreclosures. Fannie Mae recently banned the use of plywood to secure vacant homes. Beginning early this month Fannie property foreclosures must be secured by a plywood alternative, such as clear boarding.


November 25, 2016 - Inside The GSEs

Freddie Introduces MH Curriculum, Expects Increase in Loans

With potential increases in loan production on the horizon, Freddie Mac introduced a pilot program aimed at getting more mortgage lenders prepared to originate manufactured housing loans and buyers prepared to purchase them. The GSE will partner with Next Step Network, a nonprofit specializing in manufactured home purchases, and eHome America, an online home counseling company, to implement the curriculum. One of the goals of the initiative is to foster new relationships with active participants in the manufactured housing industry. This includes national and local mortgage lenders. Next Step is based in Kentucky, a state heavy in manufactured housing. Freddie said the partnership with Next Step will educate prospective buyers of...


November 25, 2016 - Inside The GSEs

Investors Unite Panel Weighs in on GSE Risk-Sharing Cons

The GSEs’ credit-risk sharing program has expanded over the years but not everyone has been fond of the transactions designed to transfer risk away from Fannie Mae and Freddie Mac Tim Howard, a former Fannie CFO, has become one of the program’s biggest critics. He said today’s credit-risk transfer program, mandated by the Federal Housing Finance Agency, removes the “normal economic discipline” of a company making its own decisions about which risks to keep and which ones to share, and on what terms. He said that the CRT transactions being done today are nothing like those done during his time at Fannie, before the start of the conservatorship.


November 25, 2016 - Inside The GSEs

FHFA 2016 Performance Report Shows Improved Loan Quality

The quality of the GSEs’ portfolios continues to improve as the credit quality of new single-family business remains strong and delinquencies are down, according to the Federal Housing Finance Agency’s performance and accountability report for fiscal year 2016. But the agency said potential for a Treasury draw still looms. The report, released last week covers from October 2015 to September 2016 and highlights performance goals from the year. The average new single-family loan holds a weighted average credit score in the high 740s. There’s been a big improvement in delinquencies as loans that were seriously delinquent dropped considerably, down to 321,000. That’s a 25 percent decrease from a year earlier, when there were 426,000 seriously delinquent loans.


November 25, 2016 - Inside The GSEs

GSE Shareholder Case Attorney Details Pending Litigation

Fairholme Funds, the plaintiff in an ongoing GSE shareholder lawsuit, hosted a conference call late last week and dished on recent developments in the case. “Fannie Mae and Freddie Mac are obligated to protect the capital of all preferred shareholders, not just one of those shareholders, the Obama Treasury,” said Bruce Berkowitz, Fairholme’s CEO. Plaintiffs in Fairholme Funds Inc. v. United States, et al, argue that the U.S. Treasury’s net worth sweep of GSE profits is against the law. “And, really, only those who oppose the dream of American homeownership would attempt to dismantle two publicly traded, shareholder-owned companies that have single-handedly provided $7 trillion in liquidity to support America’s mortgage market since 2009,” he said.


November 25, 2016 - Inside The GSEs

Second Nonperforming Loan Report Shows Growth in Fannie NPL Sales

The GSEs have sold more than 59,629 nonperforming loans through August 2016, according to the Federal Housing Finance Agency’s second report this year highlighting the activity of nonperforming loan sales and borrower outcomes. That number is up from the 41,649 NPLs that were sold through May 2016. The report, released last week, is part of the FHFA’s plans to make NPL sales data more transparent. The agency released its inaugural report in July and plans on publishing two each year. The latest report shows that the NPLs had a total unpaid principal balance of $11.9 billion, were delinquent 3.4 years on average and had an average current loan-to-value ratio of 97 percent.


November 25, 2016 - Inside The GSEs

Hensarling Calls for Greater Fannie, Freddie Accountability

House Financial Services Committee Chairman Rep. Jeb Hensarling, R-TX, called for greater accountability of the GSEs and discussed reintroducing his Dodd-Frank Act reform bill in the next Congress, during remarks in Washington last week. He said the GOP’s PATH (Protecting American Taxpayers and Homeowners) Act would help end the Fannie Mae and Freddie Mac bailout. The PATH Act, first introduced in 2013, proposes to phase out the GSEs within five years. In addition to ending the “costly” bailout, Hensarling said the bill would protect and restore the FHA to its defined mission, increase mortgage competition, enhance transparency, maximize consumer choice, and break down barriers to private investment capital.


November 25, 2016 - Inside The GSEs

GAO Report Says FHFA’s Goals for Fannie, Freddie are Inconsistent

The U.S. Government Accountability Office found that the Federal Housing Finance Agency’s strategic plan for the GSEs reflects a shift in priorities that has created more uncertainty. The GAO said the regulator revised the wording of the goals in the 2014 plan to align it more closely with FHFA’s statutory responsibilities. In the absence of an official post-conservatorship plan for Fannie Mae and Freddie Mac, the GAO was asked to examine the FHFA’s actions as conservator in a report highlighting the objectives needed for the future of the two companies after the conservatorship. The report noted that the FHFA increased its emphasis on maintaining credit availability and foreclosure prevention options, shifted away from...


November 25, 2016 - Inside The GSEs

FHFA Raises Maximum Conforming Loan Limit to $424,100

The Federal Housing Finance Agency raised the maximum conforming loan limit for GSE mortgages by $7,100 for 2017, amid rising home values. The new loan limit, announced Nov. 23, is $424,100 and represents the first time in a decade, since the housing downturn, that the conforming loan limit climbed above $417,000. The baseline loan limit was established by the Housing and Economic Recovery Act and is recalibrated each year to reflect the changes in a national home price index. Until now, the index has not risen above levels set in the third quarter of 2007.


November 25, 2016 - Inside The GSEs

GSE 1-Family Business Slump in October, Credit Box Unchanged

Fannie Mae and Freddie Mac saw a largely seasonal decline in single-family business in October, according to a new Inside The GSEs analysis of mortgage-backed securities data. The two GSEs guaranteed $99.33 billion of single-family MBS during October, an 8.3 percent decline from the previous month. Most of the slippage was in purchase-money mortgages, which fell 14.5 percent from September, following typical seasonal patterns. The refi market held up a lot better. October volume was down 1.6 percent from September, while still ranking as the second-highest monthly total so far this year. That pushed the refi business to 60.2 percent of GSE volume, excluding modified loans.


November 23, 2016 - Inside Mortgage Trends

Bank Repurchases Up Again in Third Quarter

Bank mortgage repurchase activity rose again in the third quarter of 2016, although most of the increase is tied to Bank of America clearing up old buyback issues. Commercial banks and savings institutions reported $884.4 million in single-family mortgage repurchases and indemnifications during the third quarter. That was up 10.0 percent from the previous period and marked the third consecutive quarterly increase in repurchase activity ... [Includes one data chart]


November 23, 2016 - Inside MBS & ABS

GSE Shareholder Case Attorney Details Plight of Fairholme in Ongoing Litigation

Fairholme Funds officials this week continued to press their case for restoring shareholder rights for private investors in Fannie Mae and Freddie Mac, expressing hope that the incoming Trump administration will be friendlier to their cause. In Fairholme Funds Inc. v. United States, et al, the plaintiffs argue that the net worth sweep imposed by the Treasury Department and Federal Housing Finance Agency was illegal and that the two government-sponsored enterprises were not in a “death spiral” at the time of the bailout as the government claims. During a conference call this week, Fairholme CEO Bruce Berkowitz said...


November 23, 2016 - Inside Mortgage Finance

GSE Loan Limit Goes Up

The baseline conforming loan limit for Fannie Mae and Freddie Mac will climb to $424,100 in 2017, the first such increase since 2006. The 1.7 percent increase reflected a gain in the Federal Housing Finance Agency’s expanded-data house price index at the end of the third quarter. The new ceiling for high-cost markets will...


November 23, 2016 - Inside Mortgage Finance

Trump’s Business Background Could Help Resolve Problems With Credit Availability, Housing Supply

President-elect Donald Trump’s business background could help address two of the biggest challenges confronting the housing finance industry today: limited credit availability and a shortage in the supply of the housing stock, according to Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center. “Mortgage credit availability is an issue we have repeatedly written about,” said Goodman in a recent online blog post. Some of her previous research has shown that “the market is taking less than half the credit risk it was taking during 2001, a period of reasonable credit standards,” she noted. And other HFPC research has shown...


November 23, 2016 - Inside Mortgage Finance

GSE Junior Preferred Shareholders Sense Trump White House May Be More Open to a ‘Recap and Release’ Plan

The election of Donald Trump as the 45th president may open a path out of conservatorship for Fannie Mae and Freddie Mac, some investors in the two government-sponsored enterprises believe. According to interviews conducted with GSE investors, industry lobbyists, trade group officials and others, a “recap and release” plan backed by the junior preferred shareholders of Fannie and Freddie could formally be presented to the Trump administration early next year. There hasn’t...


November 23, 2016 - IMFnews

GSE Shareholder Case Attorney Details Plight of Fairholme in Litigation

Fairholme Funds officials this week continued to press their case for restoring shareholder rights for private investors in Fannie Mae and Freddie Mac, expressing hope that the incoming Trump administration will be friendlier to their cause.


November 23, 2016 - IMFnews

FHFA Raises Loan Limits for First Time in 10 Years

After much speculation, the Federal Housing Finance Agency raised the 2017 conforming loan limit for Fannie Mae and Freddie Mac mortgages to $424,100. This is the first time the loan limit climbed above $417,000 in 10 years.


November 18, 2016 - IMFnews

Freddie Mac Prices Fourth CRT Whole Loan Securities Transaction

Freddie Mac is set to issue a $459.92 million Whole Loan Securities transaction, according to a presale report from Moody’s Investors Service.


November 18, 2016 - Inside MBS & ABS

Panelists Highlight Concern with Growing Fannie Mae, Freddie Mac Credit-Risk Sharing Program

The government-sponsored enterprises’ credit-risk transfer programs have been wildly popular with investors and many policymakers, but other industry observers see problems. One of the most outspoken critics is Tim Howard, a former Fannie Mae CFO, who sees a big difference between today’s CRT programs and the GSEs’ traditional method of laying off credit risk before they were taken into government conservatorship. “When I was at Fannie, the companies purchased...


November 17, 2016 - IMFnews

Former Fannie CFO Dishes on Concerns with GSE Risk-Sharing

Tim Howard, former Fannie Mae CFO, called Fannie Mae’s and Freddie Mac’s credit risk transfer program “exercises in deception.”


November 17, 2016 - IMFnews

FHFA Publishes Second NPL Report, Sale Outcomes Show 31 Percent Resolved

Fannie Mae and Freddie Mac have sold more than 59,629 nonperforming loans with a total unpaid principal balance of $11.9 billion, through August 2016, according to a new Federal Housing Finance Agency report.


November 16, 2016 - IMFnews

Money Market Funds Keep Buying GSE Paper

The September figures represented a 5.7 percent increase from the midway point in the year and an 8.8 percent climb from a year ago.


November 15, 2016 - IMFnews

GSE Loans Shift to Less Risky Status in 3Q16

In the refinance market, the share of loans falling into the low-score/high LTV group was 2.57 percent, down from 2.86 percent in the second quarter...


November 14, 2016 - IMFnews

Short Takes: If Jeb Becomes Treasury Secretary is a GSE Settlement Possible? / Still Rising: The Share Price of Fannie and Freddie Common / IU to Discuss Risk Sharing / Housing Goal Misses / Another Name for the HUD Job

Meanwhile, the share price of Fannie Mae/Freddie Mac common continues to rise...


November 11, 2016 - Inside The GSEs

GSE Roundup

Fannie Names RPL Winner: Fannie Mae announced this week that Towd Point Master Funding (Ceberus) is the winning bidder for its first reperforming loan sale. The sale included approximately 3,500 loans totaling $789.2 million in unpaid principal balance, split into two pools. Towd won both pools and the transaction is expected to close on Dec. 15, 2016. In collaboration with Citigroup Global Markets Inc., Fannie began marketing these loans to potential bidders on Oct. 11, 2016. The RPL sale is part of its efforts to reduce the size of the GSE’s balance sheet. Bob Ives, vice president of retained portfolio asset management, said, “We are pleased to see a high level of investor interest in our reperforming loans.”


November 11, 2016 - Inside The GSEs

Fairholme GSE Shareholder Case Battle Over Document Review


November 11, 2016 - Inside The GSEs

Federal Home Loan Bank Earnings and Advances Show YoY Increase

The Federal Home Loan Bank System witnessed an increase in earnings for the third quarter, which rose to $861 million, and a year-to-date total of $2,478 million. The FHLBank Office of Finance noted that the quarterly net income increase was due to higher gains on litigation settlements, derivatives, hedging activities and higher net interest income. Additionally, the increase on year-to-date earnings was due to gains on trading securities, partially offset by losses on derivatives and hedging activities. Total assets for the FHLBanks grew to $1.036 trillion, an 8.7 percent increase from the second quarter. Advances represented $688.6 billion, which was driven mainly by higher member demand by larger members. That number is down slightly from the...


November 11, 2016 - Inside The GSEs

Fannie and Freddie Fell Short of Two Affordable Housing Targets

The Federal Housing Finance Agency determined that for 2015 Fannie Mae and Freddie Mac did not meet all of their low-income and very low-income home-purchase goals, according to the FHFA’s preliminary annual housing report released in late October. Fannie met all of its goals in 2014 but this is the second year that Freddie fell short of meeting the same goals. Under the GSEs’ affordable housing goals, low-income is for home-purchase mortgages to families with incomes no greater than 80 percent of the area median income, and the very low-income home- purchase goal is for families with incomes no greater than 50 percent of AMI. The low-income home-purchase goal was 24 percent and Freddie ended 2015 at 22.3 percent.


November 11, 2016 - Inside The GSEs

97 Percent LTV Programs Grew in 3Q, Usage Still Relatively Small

Fannie Mae and Freddie Mac low-downpayment programs have been in the market for almost two years now but they haven’t been getting a lot of mileage. Although numbers picked up in the third quarter, some say the programs need to be simplified in order to promote more usage. The GSEs purchased $10.31 billion of purchase mortgages with loan-to-value ratios of 96 to 97 percent through Sept. 30, 2016, according to an Inside Mortgage Finance analysis of mortgage-backed securities data. However, nearly half of that came in the third quarter, which saw a 52.7 percent jump from the previous period. Fannie’s HomeReady program and Freddie’s Home Possible Advantage products were designed to help creditworthy, low- and moderate-income buyers.


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