Phoenix Capital is out with a new “flow” servicing offering where the seller will deliver $40 million to $50 million per month in Fannie Mae and Freddie Mac product.
The megabanks – Wells Fargo, JPMorgan Chase, Bank of America and U.S. Bank – ranked first through fourth, respectively, with a combined agency market share of 40.3 percent at Sept. 30.
With front-end risk-sharing by the GSEs being a hot topic as of late, this week the U.S. Mortgage Insurers released an analysis touting the benefits of risk sharing with mortgage insurers and said it may even help lower guaranty fees. The group proposes MI coverage as deep as 50 percent of the home’s value.
New Actual-Loss Risk Transfers for Fannie, Freddie. This week, Fannie Mae announced that it priced its latest credit risk-sharing transaction under its Connecticut Avenue Securities series. While this is Fannie’s 9th CAS deal, this is its first CAS transaction structured using an actual-loss framework, which will be the standard for the CAS program going forward. The $1.45 billion note offering is scheduled to settle on Oct. 27. Meanwhile, Freddie Mac also announced its intention to sell its seventh Structured Agency Credit Risk debt notes offering this year for more than $1 billion. This STACR Series 2015-DNA3 offering is the company’s fourth transaction where losses will be allocated based on the actual losses. FHFA, GSE Departures. The most recent Fannie Mae executive...
As anticipated, the Federal Housing Finance Agency announced that it decided to finalize plans to use its existing “expanded data” House Price Index for tracking home prices for setting Fannie Mae’s and Freddie Mac’s maximum conforming loan limits. During the comment period, industry participants largely supported the plan but questioned the extent to which conforming loan limits should be adjusted. The FHFA said it will release the maximum conforming loan limits for 2016 using the expanded-data HPI at the end of November. The most recent FHFA House Price Index was released late this week and reported a 0.3 percent increase in U.S. house prices in August from July. Year-over-year, house prices were up 5.5 percent.