Fannie Mae and Freddie Mac saw a marked decline in refinance business during the second quarter of 2013, but a strengthening housing market helped offset some of the lost volume. The two government-sponsored enterprises securitized $256.0 billion of single-family refinance loans during the second quarter, according to the Inside Mortgage Finance GSE Seller Profile, a quarterly statistical report based on loan-level, mortgage-backed securities disclosures. That was down 13.6 percent from ... [Includes two data charts]

Mortgage banking remained highly profitable during the first quarter of 2013, but the hefty margins earned in secondary market activity declined and production volume tapered off, according to the Mortgage Bankers Association’s quarterly performance report. The average firm participating in the survey generated $3.65 million in pretax income during the first quarter, off 22.5 percent from the previous period, the MBA said. That was still well above the $2.33 million in average earnings for the ...

Citigroup this week unveiled a $968 million legal settlement with Fannie Mae to cover current “potential future repurchase claims” for breaches of representations and warranties on 3.7 million first liens originated between 2000 and 2012. According to a statement issued by the nation’s sixth largest home lender, almost all of the money that will be paid to the GSE is “covered by Citi's existing mortgage repurchase reserves.”

To implement sustainable cost reductions, lenders and servicers should address four critical elements, according to analysts at PricewaterhouseCoopers. PWC said executives addressing consumer lending costs should develop a strong foundation, create breathing space, look at the system as a whole and embed a cost-conscious culture. “To create sustainable reductions in cost requires a comprehensive review of the organization, its strategic positioning and the underlying ...

Although it appears that the rate on the benchmark 10-year Treasury has finally stabilized, most mortgage professionals are operating under the assumption that the days of ultra-low rates are over. That may be the “bad” news. But there is good news in rising rates in the form of higher values attached to mortgage servicing rights. As FBR Capital Markets points out in a recent note to investors: “MSR holders are the clear winners” when it comes to higher rates. In its report, FBR lays out the basic ...

Legislation filed in the House two weeks ago would require the Treasury Department to once again amend its agreement with Fannie Mae and Freddie Mac to allow the GSEs to pay down the billions of taxpayer dollars the companies received while in government conservatorship.Under the Let the GSEs Pay US Back Act of 2013, H.R. 2435, – sponsored by Rep. Michael Capuano, D-MA – the GSE senior preferred stock purchased by the Treasury would no longer accrue dividends, as is the current practice.

Given that regulators are paying closer attention to fair lending these days than ever, as well as the growing use of social media by mortgage lenders, some top compliance sources have offered up a number of best practices and other recommendations to help firms reduce or eliminate their potential liability. “I’ve heard it said that some companies choose not to do social media or websites because of the risk. When I hear that, I’m perplexed because it is the main form of communication with the ...

Manufactured housing as a low-cost housing option is already in a serious slump, but regulations set to take effect early next year would push it to the brink of extinction unless offsetting legislation is passed, warned an industry trade group. Effective in January 2014, new regulations implementing provisions in the Dodd-Frank Act will significantly limit the ability of low-income borrowers to obtain mortgage financing needed to purchase a manufactured home, according to the Manufactured Housing Institute ...

Fannie Mae and Freddie Mac forked over a combined $66.4 billion in dividends to the U.S. Treasury at the end of June with more payments – though not as large – expected for quarters to come. Fannie paid the Treasury Department roughly $59.4 billion, while Freddie paid about $7.0 billion. A large chunk of Fannie's recent profits are tied to “deferred tax assets” which involve the recapture of money originally given to the GSE by Treasury to bolster its capital position.

A sharp downturn in refinance activity reduced Fannie Mae’s and Freddie Mac’s business volume during the second quarter of 2013, but the GSEs posted their strongest quarter in purchase-mortgage activity in four years, according to a new Inside The GSEs analysis. Fannie and Freddie issued $337.74 billion in single-family mortgage-backed securities during the second quarter, a 5.1 percent decline from the first three months of the year. The decline put an end to an upward trend in GSE production that took hold during the third quarter of 2012. Despite this, Fannie and Freddie business was up 20.0 percent over the first six months of last year.