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...
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.”
Second-ranked AGNC Investment Corp. – formerly American Capital Agency Corp. – reported a 2.2 percent increase in its MBS holdings under a new management structure…
An executive at Angel Oak Capital, Atlanta, parent of Angel Oak Home Loans, confirmed that his firm is seeking a rating and would like to issue a rated non-QM MBS someday…
Market analysts, observers and participants alike feel pretty much in the dark about what to expect from Republican President-elect Donald Trump when it comes to the fate of government-sponsored enterprises Fannie Mae and Freddie Mac. “Mortgage finance legislation and the future of the GSEs was never discussed during the campaign so there are no clear indicators of what a Trump administration will do regarding the future of Fannie Mae and Freddie Mac,” analysts at Keefe, Bruyette & Woods said in a post-election review. Complicating life for the new regime is...
Real estate investment trusts that focus on the residential MBS market reported a modest decline in agency MBS holdings during the third quarter, according to a new Inside MBS & ABS analysis. A group of 17 large, publicly traded mortgage REITs held a combined $217.24 billion of agency MBS at the end of September, down 1.2 percent from the mid-year mark. But the decline was largely due to shuffling in the ranks that resulted in two firms exiting the business. Annaly Capital Management completed...[Includes one data table]
Freddie Mac and Shellpoint Partners are preparing to price new securities in the aftermath of the presidential election, and Select Portfolio Servicing priced $600.0 million in an MBS backed by servicer advance receivables this week. Freddie is about to issue a Whole Loan Securities transaction, which would mark the second such issuance from the government-sponsored enterprise this year and the fourth overall, dating back to the first WLS transaction that closed in July 2015. The balance of the planned Whole Loan Securities Trust, Series 2016-SC02, is...
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