Fannie Mae recently said that in 2016 it would announce details about its plans to let lenders pay a risk fee as an alternative to repurchase for some of the defective loans it receives. While both GSEs have already put some remedies for defects in place, this alternative lets the lender pay a fee for some loans labeled defective, instead of being asked to repurchase the loan. …
The Ginnie Mae share of total mortgage debt outstanding hit a record 15.2 percent at September 30, according to exclusive survey figures from Inside Mortgage Finance...
The share of home-purchase transactions that closed on time in November declined compared with October for all six loan types tracked by HousingPulse...
The supply of single-family MBS outstanding grew again in the third quarter of 2015, according to a new Inside MBS & ABS analysis. At the end of September, $6.381 trillion of single-family MBS were outstanding, a 0.7 percent increase from the second quarter. The market has moved in fits and starts since the end of 2009, but the September mark was the highest since the third quarter of 2013. The supply of non-agency MBS in the market has moved...[Includes two data tables]
Fannie Mae and Freddie Mac will try to transfer the credit risk on 90 percent of their mainstream mortgage business in 2016 under new marching orders from the Federal Housing Finance Agency, but next year’s activity may end up being less than the 2015 total. The FHFA in the past has set credit-risk transfer goals based on specific dollar amounts. But next year’s target is to sell some of the credit risk on nearly all of the fixed-rate mortgages the two government-sponsored enterprises buy that have loan terms exceeding 20 years and loan-to-value ratios over 60 percent. Activity in the dwindling Home Affordable Refinance Program will be excluded. In the first 11 months of 2015, the two GSEs securitized...
The Securities Industry and Financial Markets Association advised Capitol Hill that the successful government-sponsored enterprise credit risk-sharing programs could be improved to increase liquidity and investor interest. In a letter to Sen. Richard Shelby, R-AL, chairman of the Senate Banking, Housing and Urban Affairs Committee, the Wall Street group said, “Up-front risk-sharing could make housing finance more efficient and sustainable by allowing the GSEs to achieve day-one risk transfers without having to warehouse credit risk until it can be distributed in a back-end credit transfer transaction.” It added...
The U.S. residential MBS sector will continue its slow, steady recovery in 2016 amid a host of challenges, showing further improvement in housing fundamentals, credit quality and mortgage performance, according to analysts. The challenges to MBS structured financing boil down to the following: tapering of Federal Reserve investment in MBS, MBS supply and demand, interest rates and prepayment risk. Fitch Ratings notes...
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