Mortgage Buybacks

Browse articles from all of our Newsletters related to Mortgage Buybacks.

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 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 Mortgage Trends

GSE Repurchase Activity Slowed in 1Q14

Fannie Mae and Freddie Mac continued to whittle down their caseload of unresolved mortgage repurchase requests during the first quarter of 2014, according to a new Inside Mortgage Trends analysis of disclosures by the government-sponsored enterprises. Fannie and Freddie had $3.23 billion of pending and disputed buyback demands outstanding at the end of March, down 30.3 percent from the previous quarter. Although both GSEs ... [Includes two data charts]

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 7, 2014 - Inside Mortgage Finance

FHA Indemnifications Still an Issue, But Lenders Do Have Options for Defense, Ex-HUD Official Reminds

As Fannie Mae and Freddie Mac buyback demands have tapered off, lenders continue to face aggressive government efforts to indemnify the FHA for losses, but they do have options available to them that can work in their favor. During a webinar sponsored last week by Inside Mortgage Finance, Amanda Raines, a partner with the BuckleySandler law firm in Washington, DC, emphasized that FHA indemnification demands have continued this year, with an aggressive use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act. That has led...

August 1, 2014 - Inside MBS & ABS

Buybacks, Indemnifications Will Continue, But There Are Many Coping Strategies Available, Experts Say

Mortgage buybacks and indemnifications may be off their peak in terms of volume, but they are widely expected to continue for the foreseeable future, industry experts said this week. But the good news for the industry is that there are a variety of defenses and coping strategies available, depending on the particulars of a given situation. Amanda Raines, a partner in the Washington, DC, office of the BuckleySandler law firm, told participants of an Inside Mortgage Finance webinar this week that more buybacks are definitely on the way. “The Department of Justice is still making financial fraud a priority,” she said. Raines noted...

July 31, 2014 - Inside Mortgage Finance

GSE Buyback Activity Continued to Decline in 1Q14; $3.2 Billion Still Unresolved in March

Mortgage lenders repurchased just $522.5 million of home loans from Fannie Mae and Freddie Mac during the first quarter of 2014, according to disclosures filed by the two government-sponsored enterprises with the Securities and Exchange Commission. That was by far the lowest quarterly repurchase volume reported by the GSEs, according to an analysis by Inside Mortgage Trends, an affiliated newsletter. Because Fannie and Freddie this year stopped providing detailed repurchase activity data in their quarterly earnings, the SEC disclosures are the only comprehensive source of GSE buyback activity. First-quarter repurchase volume was...[Includes one data chart]

July 24, 2014 - Inside MBS & ABS

Fannie Prices Fourth, Largest Credit Risk-Share Transaction, More to Come

Fannie Mae late last week priced its third credit risk-sharing deal of 2014. The $2.05 billion note is the government-sponsored enterprise’s fourth and largest transaction under its Connecticut Avenue Securities series since the Federal Housing Finance Agency ordered both Fannie Mae and Freddie Mac to shrink the GSEs’ role in the U.S. housing market last year. In its latest offering – Series 2014-C03 – Fannie included reference loans with original loan-to-value ratios of up to 97 percent and “is consistent with prior transactions.” Previous C-deal offerings included reference loans with up to 80 percent LTV ratios. “We’ve continued...

July 18, 2014 - Inside FHA Lending

Ginnie Mae Servicing Remains Flat in 2Q14

Ginnie Mae servicing remained flat in the second quarter of 2014, continuing a trend that began in the third quarter of last year as FHA refinancing fell and purchase activity slowed, according to Inside FHA Lending’s analysis of Ginnie Mae data. Servicing volume rose by only 0.7 percent from the first quarter, slightly lower from the 0.9 percent increase reported by Ginnie Mae servicers for the first three months of 2014. On the other hand, volume was up modestly by 5.9 percent year-over-year, data showed. Ginnie Mae servicers ended the second quarter with a total of $1.46 trillion in unpaid principal balance, up from $1.45 trillion in the prior quarter. Four out of the top five Ginnie Mae servicers were banks. Wells Fargo closed out the second quarter with $425.9 billion in servicing volume, a 0.2 percent decrease from the previous quarter but up 2.1 percent from a year ago. Its 29.2 percent market share put it ... [1 chart]


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