Fannie Mae and Freddie Mac continue to be significant players in the multifamily mortgage market, but some industry observers question whether the mortgage giants are doing too much in this arena and how they’re going about getting business.
Federal regulators should separate capital standards for banks from accounting standards, according to the Structured Finance Industry Group. Such a maneuver would likely allow banks to issue risk-sharing transactions similar to deals in recent years from Fannie Mae and Freddie Mac.
Angel Oak Companies this week reported record non-QM originations of $512.0 million for the second quarter, giving it an annual run-rate of more than $2 billion – another bullish sign this fledgling sector will post stronger growth rates than conventional and government lenders in the quarters ahead.
The non-mortgage ABS market took a breather in the second quarter as new issuance fell modestly from the red-hot pace at the start of the year, according to a new Inside MBS & ABS analysis.
Trends with housing inventory, home prices and interest rates appear to be holding back home sales and originations of purchase mortgages, according to industry analysts.
The Consumer Financial Protection Bureau recently announced plans to create a “regulatory sandbox” to encourage consumer-friendly innovation in financial services. The mortgage industry sees it as an opportunity to enhance the emerging niche of loans that fall outside the qualified mortgage standard.
Fannie Mae recently announced plans to simplify its private mortgage insurance cancellation policy. In a letter that went out to lenders last week, the government-sponsored enterprise updated the different methods for verifying current property values.
The House of Representatives this week passed legislation extending the National Flood Insurance Program for another four months, while a House committee reported out a bill revising the definition of “points and fees” under the federal Truth in Lending Act.
With nonbanks continuing to gain share in mortgage origination, servicing and securitization, their ability to raise fresh capital to appease government guarantors is becoming increasingly important – and comes at a difficult time.
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