Mortgage Industry Waits for PHH Shoe to Drop. The mortgage industry is awaiting a final ruling from the U.S. Court of Appeals for the District of Columbia Circuit in the case of PHH Corp. v. Consumer Financial Protection Bureau, No. 15-cv-01177.
Fannie Mae and Freddie Mac – in conservatorship for almost eight years now – posted combined net income of $3.94 billion for the second quarter, with an assist from higher guaranty fee income and a noticeable decline in hedging charges. Fannie’s profit was $2.9 billion for the second quarter, more than double the $1.1 billion reported last quarter. The GSE attributed the increase in net income to lower fair value losses in the quarter, coupled with high credit-related income due to home price increases and interest rate decreases. Higher net revenues driven by increased mortgage prepayments also helped. Fannie booked $3.26 billion of guaranty fee income in 2Q16, compared to $3.22 billion in the first quarter.
The Federal Home Loan Bank System witnessed a quarterly drop in earnings, but posted an 11.6 percent jump in advances in the second quarter as lenders ramped up mortgage originations. The combined net income was $792 million in the second quarter of 2016. That number is down from the $825 million in the previous quarter. The report noted that the 12-month increase was mostly due to ...
The multifamily market continued to stay strong in the first half of 2016, despite a slowdown in origination volume. GSE multifamily business soared with record volumes in 2015 when lending reached $90 billion. Freddie Mac said steady economic growth and key drivers will keep the multifamily market moving forward through the remainder of 2016 and into next year. In its mid-year multifamily outlook, the mortgage giant noted that origination volume will have another record year in 2016, thanks to increasing property prices, new completions and maturities. Although fundamentals moderated some in the first half of the year, Freddie said they won’t decelerate enough to derail the multifamily industry because demand remains robust.
The senior tranche of the MBS will include credit enhancement of 6.40 percent, similar to the credit enhancement levels of previous deals from Two Harbors.
The agency single-family MBS market gained speed for the sixth consecutive month in July and appeared on track to top last year’s annual total by the time 2016 is over. According to a new Inside MBS & ABS analysis and ranking, Fannie Mae, Freddie Mac and Ginnie Mae produced a hefty $129.30 billion of new single-family MBS in July. That was up 7.7 percent from June and represented the biggest month in new issuance since August 2013. While the year-to-date totals were still slightly below the volume produced in the first seven months of 2015, this year’s market probably hasn’t...[Includes two data tables]
The Consumer Financial Protection Bureau last week released its proposed rule to clarify a number of issues related to its integrated disclosure rule known as TRID – and perhaps the single most significant aspect of the proposal for mortgage investors is what it does not include: any additional provisions to cure loan errors. Some observers believe that could be a negative for the secondary market. On the other hand, the bureau did provide...
MBS investments by most of the nation’s publicly traded mortgage real estate investment trusts continue to be in a holding pattern these days as they figure out what to do in an environment of declining interest rates and accelerating prepayment speeds. Market leader Annaly Capital Management held $64.9 billion of agency MBS at midyear, down ever so slightly from the prior quarter. Compared to June 2015, Annaly’s MBS portfolio was off 4.1 percent. American Capital Agency Corp., Annaly’s closest competitor in terms of REIT MBS investing, saw...
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