A steady decline in GSE refinances throughout 2013 coupled with faltering purchase mortgage activity during the final third of the year helped contribute to an overall dip in the volume of single-family mortgages securitized by Fannie Mae and Freddie Mac both on a month-to-month and year-end basis, according to a new Inside The GSEs analysis. Fannie and Freddie issued $55.8 billion in single-family mortgage-backed securities in December, a 4.9 percent decline from November.
Fannie Mae’s and Freddie Mac’s home-retention activity declined for the most part during the third quarter of 2013, according to a new analysis of Federal Housing Finance Agency data by Inside The GSEs. Total loss mitigation activity – total home-retention efforts and foreclosure activities combined – declined 8.3 percent during the third quarter to 152,101 and was down 21.3 percent from a year-ago.
Fannie Mae and Freddie Mac combined did less business in single-family mortgage-backed securities in 2013 than the previous year while a growing share of business came from small and mid-sized lenders, according to an Inside The GSEs analysis. For the year, the two GSEs produced $1.161 trillion in single-family MBS, down 8.4 percent from their overall production in 2012.
The fee increases and stiffer mortgage-insurance requirements implemented on FHA mortgages in the past year have helped reduce the agency’s share of originations to first-time homebuyers. First-time homebuyers have traditionally been heavily reliant on FHA financing and that continues to be the case, though the FHA’s dominance has declined significantly in the past year. At the start of 2013, FHA mortgages were used in about one of every two home purchases by a first-time buyer ... [Includes one data chart]
With residential loan production expected to decline by at least 30 percent this year, bank originators are looking at ways to cut costs without damaging their ability to handle an unexpected uptick in applications should rates unexpectedly fall. According to both lending executives and outsourcing firms, inquiries are picking up at vendors that process, underwrite and close residential mortgages. “The banks are tired of ramping up and then cutting back,” said Jeffrey Taylor, managing partner at Digital Risk ...
An entirely new mortgage market was formed on Jan. 10, 2014, but it remains to be seen who is in it, who will get in and what the sector will be made of. The landing of the ability-to-repay rule two weeks ago created two categories of qualified mortgages – prime and nonprime – plus a non-QM market. The new rule is going to limit the opportunities for lenders to move beyond the ultra-conservative standards of the past few years, but it won’t prevent a gradual expansion of credit ...
Understanding best practices is useful for commercial mortgage servicers and other industry participants in fulfilling business responsibilities. However, understanding how best practices develop – and can be improved – is not only valuable but also serves the whole industry, according to a new report from Standard & Poor’s. There are many examples of best practices that could further improve performance and revise market expectations – for example, the investor reporting package, loan modification ...
A key factor in the upswing in private MI share of Fannie/Freddie business was the relatively steadier volume in purchase-mortgage securitization compared to refinance loans.
The non-agency MBS market is stuck in "limbo until we know where the GSEs are going,” said Steve Abrahams, head of securitization and MBS research at Deutsche Bank Securities.
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