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...
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 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]
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 Federal Housing Finance Agency will push Fannie Mae and Freddie Mac to assess front-end risk-sharing strategies in 2016, according to the agency’s game plan for the two government-sponsored enterprises released late this week. At this point, most of the work appears to be exploratory. The FHFA itself will issue a formal “request for input” from the industry, and the GSEs are expected “to conduct an analysis and assessment of front-end credit risk transfer.” The 2016 “scorecard” pushes...
Don’t believe press accounts that the Consumer Financial Protection Bureau’s integrated disclosure rule isn’t causing headaches throughout the mortgage lending industry, top industry representatives said this week. The good news for lenders is: It’s not just your shop that is having problems. Experts detailed the ongoing industry compliance problems with the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Integrated Disclosure Act rule – the so-called TRID rule – during a webinar this week sponsored by Inside Mortgage Finance. “Surely, the rule is...
Seven years to the day after the Federal Reserve began its so-called ZIRP – or zero interest rate policy – the Fed’s Open Market Committee, as widely expected, finally voted this week to begin raising interest rates, opting for a modest 25 basis point rise in the federal funds rate. “This action marks the end of an extraordinary seven-year period during which the federal funds rate was held near zero to support the recovery of the economy from the worst financial crisis and recession since the Great Depression,” said Fed chief Janet Yellen. “It also recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardship of millions of Americans. And it reflects the committee’s confidence that the economy will continue to strengthen.” However, the Fed also implied...
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