Fannie Mae and Freddie Mac continue to be significant players in the multifamily mortgage market, but some industry observers question whether the mortgage giants are doing too much in this arena and how they’re going about getting business.
Fannie Mae and Freddie Mac in a few days are expected to report second-quarter results that likely will top earnings of the prior period when they posted a combined net profit of $6.5 billion, according to an analysis by Inside MBS & ABS.
Three issuers of prime non-agency MBS have bucked industry standards and closed deals where some of the loans weren’t subject to pre-securitization reviews by third-party due diligence firms. The trend could cause problems for MBS investors, Moody’s Investors Service warned this week.
Michael Bright, President Trump’s nominee to lead Ginnie Mae, wants to ensure that the agency is well run and that mistakes that led to the 2008 financial crisis are never repeated during his watch.
Interest-only loans represent a growing share of collateral securitized by commercial MBS conduits over the past few years. Credit rating agencies are concerned because IO loans generally perform worse than amortizing mortgages.
A handful of banks account for a large share of the loans in prime non-agency mortgage-backed securities issued since the start of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. Banks were four of the top five originators of securitized prime mortgages between January 2017 and June 2018. More precisely, these banks ranked among the top known sources of collateral for these deals. In fact, the name of the originator was ... [Includes two data charts]
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