Freddie Mac launched a new credit risk-transfer offering late last week that’s structured more like a non-agency mortgage backed security. One analyst said it could prompt more participation from real estate investment trusts. The $300 million offering, the Freddie Mac Whole Loan Security, features a $278 million senior class guaranteed by the GSE and a $23 million subordinate actual-loss security. WLS 2015 SC01 is backed by super-conforming loans originated in the fourth quarter of 2014 and early 2015. The GSE said by shifting some of its credit risk from the underlying mortgages to subordinate investors, the new offering compliments its Structured Agency Credit Risk and Agency Credit Insurance offerings.
The Federal Home Loan Bank of Chicago, which operates the Mortgage Partnership Finance Direct Program for nine FHLBanks, began issuing Ginnie Mae securities last week. Its first issuance was a $5 million security backed by mortgages originated by community lenders through the MPF Government MBS product. With the MPF Government MBS product, the MPF program buys fixed-rate mortgage loans originated by FHLBank members that are insured or guaranteed by government agencies. Matt Feldman, president of the Chicago FHLBank, called it “an important milestone for the MPF Program,” adding that Ginnie Mae securities are among the most liquid financial instruments in the world. He said the new product will allow FHLBank members to offer competitive FHA, VA and government guaranteed Native American and rural housing mortgages.
The Federal Housing Finance Agency recently established guidelines for the Federal Home Loan Banks to use when developing their individual strategic business plans.These guidelines were created to help determine if the 11 institutions are successfully achieving their core mission of making advances and establishing limits on its maximum holdings of acquired member assets.The FHLBanks are also charged with supporting their banks’ housing finance and community lending mission in less direct ways including advance commitments, housing finance agency debt instruments and investment in certain small business investment company securities and more.In assessing each of the banks’ core mission achievement the FHFA said it will calculate the ratio of its Primary Mission Assets relative to Consolidated Obligations at the...
Software company Ellie Mae recently teamed up with Fannie Mae to incorporate Fannie’s risk management tools into its system to make it easier for lenders to do business with the GSE. This will help ensure that the loans meet Fannie’s sale eligibility requirements. Although Ellie Mae has its own system, Encompass LOS, the company decided to incorporate Fannie’s risk management tools, like Desktop Underwriter, Collateral Underwriter and Early Check software, into Encompass. The California-based company said it hopes the integration will enhance transparency and avoid any potential last-minute surprises since the system will examine loans beginning from eligibility all the way to loan delivery.
Fannie’s New Headquarters. Fannie Mae will begin occupying its new state-of-the-art headquarters in Washington, DC in 2017, replacing the site of the Washington Post building. Renderings filed with the DC’s Board of Zoning Adjustment illustrate window-filled twin buildings connected by several bridges and notes that it will have about 1.2 million square feet spread out among 12 stories and retail on the bottom. Freddie Mac SVP Receives Award. Christina Boyle, a Freddie senior vice president, was named a 2015 “Power Player” by MReport, honoring women in housing finance. GSE Q2 Earnings Release Date. Freddie Mac announced that it will release its second-quarter 2015 financial results on Tuesday morning, Aug. 4. Freddie Prices Second Q Certificate. Freddie Mac priced its second Q Certificates...
Fannie Mae and Freddie Mac are getting more business in the so-called conforming-jumbo market this year, according to a new Inside The GSEs analysis of mortgage-backed securities data.Through the first six months of 2015, the two GSEs securitized $39.44 billion of home loans that exceed $417,000, the maximum loan amount in areas that are not designated high-cost markets. That figure, including only mortgages for one-unit properties, was up 112.5 percent from the first half of 2014, about double the 55.8 percent growth rate in total Fannie/Freddie business over that period. Conforming-jumbo loans accounted for 9.6 percent of total GSE business on single-unit properties in the first half of this year, compared to 7.1 percent for the first six months of 2014.
Ginnie Mae said new MBS issuers need to gain some experience in the agency’s program before they are allowed to do servicing transfers, but some newly approved issuers have attempted to do so. Roy Hormuth, director of single-family securitization at Ginnie Mae, said there has been some misconception among new issuers about doing a co-issuance program in their first month in the Ginnie program despite the fact that they are not ready for it. New issuers must first demonstrate that they can successfully manage the servicing themselves before they can transfer servicing immediately, he said. In a co-issuance transaction, a company sells...
A broad sample of 25 publicly traded banks reported strong earnings from their mortgage-banking operations during the second quarter of 2015, a new Inside Mortgage Trends analysis reveals. The group, which includes the four megabanks and the major regionals involved in the sector, reported a combined $4.391 billion in mortgage-banking income for the second quarter. That was up 19.6 percent from the first quarter of this year, and it ... [Includes one data chart]
Lenders have slowly loosened underwriting standards since the third quarter of 2013, with the credit expansion largely focused on the agency market, according to a new analysis by the Urban Institute’s Housing Finance Policy Center. Actions by the government-sponsored enterprises and the FHA to address buyback risk appear to have helped prompt lenders to loosen underwriting standards on agency loans. The HFPC’s credit availability index tracks ...
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