“Private capital out there, here we come,” Edward DeMarco, acting director of the Federal Housing Finance Agency, said this week. He was talking about pending risk-sharing pilot transactions between the government-sponsored enterprises and the non-agency market. The FHFA set a goal for Fannie Mae and Freddie Mac to each issue at least $30.0 billion in risk-sharing transactions this year. Those efforts were delayed in 2012 due to regulatory concerns, but DeMarco said the GSEs will soon issue such deals ...
Issuance of non-agency MBS quadrupled in the first quarter, according to new figures compiled by Inside MBS & ABS. Firms selling securities include Ocwen and Nationstar.
Banking regulators acknowledged problems with the foreclosure reviews conducted by the nation's megabanks and have agreed to evaluate the use of independent consultants in regulatory actions.
Ginnie Mae is seeking comment from Wall Street dealers on whether the agency should continue maintaining two separate MBS programs, or consolidate them and create a third Ginnie Mae security. The agency has reportedly sent questionnaires to dealers seeking their opinion on a number of options, including combining the lower volume Ginnie Mae I MBS program with the far busier Ginnie Mae II program and its likely impact on liquidity, issuance and market share. A Bloomberg report said...
Expect quality control to be the single most critical component at the top of a long list of requirements for prospective lenders seeking to do business with Fannie Mae and Freddie Mac, according to agency officials and experts during an Inside Mortgage Finance webinar this week. The two government-sponsored enterprises are ready, willing and able to do business with new seller/servicer partners, if they are prepared to demonstrate, in a transparent and painstaking way, they are an opportunity to Fannie or Freddie and not a risk, National Union Mortgage President and CEO Bill Cosgrove told webinar attendees. “It’s really all about quality control. Every area of your organization has to be...
The non-agency MBS market produced $8.33 billion in new transactions during the first quarter of 2013, its strongest issuance in nearly two years, and did so the old-fashioned way by relying heavily on “new” prime jumbo mortgages. The first three months of 2013 saw nearly a threefold increase in non-agency MBS issuance compared to the previous quarter and was 65.1 percent ahead of the pace set in 2012, according to a new analysis and ranking by Inside MBS & ABS. Although over half the issuance volume was in re-securitizations and deals backed by servicer advances, the most encouraging sign was the continued rebound in prime jumbo MBS production. Redwood Trust made good...[Includes three data charts]
Issuers of non-agency MBS won two key court battles against federal agencies because the regulators’ suits to recover losses suffered by failed institutions came too late. Last week, the U.S. District Court for the Central District of California rejected all claims the Federal Deposit Insurance Corp. brought against Countrywide Financial related to 10 MBS certificates sold to the failed Colonial Bank. “All of the FDIC’s claims are time-barred,” the court said. In FDIC v. Countrywide, the court said...
For as long as Edward DeMarco remains acting director of the Federal Housing Finance Agency, he said he will push forward with the agency’s strategic plan to wind down Fannie Mae and Freddie Mac while encouraging the return of private capital to the secondary market. DeMarco, along with FHFA Inspector General Steve Linick, testified before the Senate Banking, Housing and Urban Affairs Committee this week. The hearing to evaluate the FHFA’s conduct as regulator and conservator to the government-sponsored enterprises occurred amid reports that the White House is poised to nominate Moody’s Analytics’ Chief Economist Mark Zandi as the FHFA’s new permanent director. “Fannie Mae and Freddie Mac were chartered...
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