Mortgage Buybacks

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

March 27, 2015 - Inside The GSEs

GSE Buyback Activity Focused On Newer, Performing Loans

Fannie Mae and Freddie Mac continue to turn their focus in loan-quality reviews to more freshly originated mortgages, the vast majority of which are current. A new Inside The GSEs analysis of disclosures made by the GSEs to the Securities and Exchange Commission shows that most of the lender repurchases made in 2014 continued to be associated with older, pre-crisis loans. But the biggest volume of pending and unresolved buyback demands were tied to loans securitized in 2013 and 2014. Sellers repurchased or provided indemnification on some $4.046 billion of mortgages during 2014, the disclosures reveal. They were split roughly evenly between Freddie ($2.031 billion) and Fannie ($2.014 billion)...[includes exclusive chart]

March 20, 2015 - Inside FHA/VA Lending

Around the Industry

Loan Modification Trial Payment Plans for Forward Mortgages. The Department of Housing and Urban Development has announced requirements for trial plan duration, required signatures, and reporting for trial payment-plan agreements, and the conditions under which FHA deems a TPP to have failed.Lenders must implement the requirements in Mortgagee Letter 2015-07 for all TPPs offered to borrowers on or after June 1, 2015. FHA Publishes Additional Sections of HUD Single-Family Policy Handbook. The FHA has published additional sections for the SF Handbook, including the following: Doing Business with FHA – Lenders and Mortgagees Doing Business with FHA – Other participants in FHA Transactions – Appraisers; Quality Control, Oversight and Compliance – Lenders and Mortgagees; Quality Control Oversight, and Compliance – Other Participants in FHA Transactions – Appraisers ...

March 13, 2015 - Inside The GSEs

‘Bifurcation’ Agreements with GSEs At Heart of Ocwen’s MSR Sales

Ocwen Financial’s goal to eventually unload $140.5 billion of mortgage servicing rights tied to Fannie Mae/Freddie Mac loans is being aided by bifurcation agreements approved by the GSEs and their regulator, according to advisors familiar with the deals.

March 13, 2015 - Inside Mortgage Trends

GSE Buybacks Up in 4Q14, But Focus Is Shifting to More Recent Production

Mortgage lenders repurchased or paid losses on $710.1 million of Fannie Mae and Freddie Mac loans during the fourth quarter of 2014, a 30.8 percent increase from the previous period, according to a new Inside Mortgage Trends analysis of earnings reports. While increased buybacks are never a good thing for lenders, the fourth-quarter total was the second-lowest repurchase amount disclosed by the two government-sponsored enterprises ... [Includes two data charts]

March 13, 2015 - Inside MBS & ABS

Reps and Warrants on New Jumbo MBS Seen As Providing Investors with Mixed Protection

The representations and warranties used in jumbo MBS can sufficiently handle some breaches but fail to completely protect investors, according to Moody’s Investors Service. In a report released this week, the rating service noted that issuers use two main varieties of reps and warrants: those that allow for an open-ended review of loans and those that employ a prescriptive framework. The open-ended reviews are seen in jumbo MBS from Redwood Trust, WinWater Home Mortgage and others...

February 26, 2015 - Inside Mortgage Finance

Guaranty Fee Income Keeps Growing at Fannie And Freddie, Buyback Volume Eased in 4Q14

Falling interest rates tripped up Fannie Mae and Freddie Mac during the fourth quarter, indirectly leading to sharp declines in profitability despite continuing gains in their key mortgage-backed securities guaranty fee operations. Together, the two government-sponsored enterprises earned $1.54 billion in net income during the fourth quarter of 2014, down 74.3 percent from the previous quarter. With their retained portfolios in shrinkage mode, net interest income was down 11.9 percent from 2013. The big factor was...

February 20, 2015 - Inside FHA/VA Lending

Ginnie Mae Servicing Up Slightly in 4Q, 2014

Ginnie Mae servicing volume gained a mere percentage point in the fourth quarter of 2014 from the previous quarter, capping a productive year for servicers of government-backed mortgages, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose by only 1.0 percent to $1.5 trillion during the last three months of 2014 from $1.4 trillion in unpaid principal balance in the first quarter, and increased 4.0 percent year over year. Four out of the top five Ginnie Mae servicers were banks, of which three experienced declines in their servicing portfolios on quarterly and year-over-year bases. The leader of the pack, Wells Fargo, closed out the year with $416.0 billion in Ginnie Mae servicing and capturing 27.8 percent of the market. Its servicing portfolio fell ... [ 1 chart ]


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