Is Ed DeMarco unimpressed with Fannie and Freddie's return to profitability? “…we should keep the recent reports of positive net income in perspective,” he told the audience of the Bipartisan Policy Center this week. “Much of it has been related to one-time adjustments..."

Banks of all sizes reported sharp declines in their mortgage banking earnings during the third quarter of 2013, according to a new analysis by Inside Mortgage Trends. The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business. A diverse group of 19 lenders – including all ... [Includes one data chart]

The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business.

Garth Graham, head of Stratmor Group’s marketing strategy and execution practice, said lenders should use the leads and data they already have.

The Treasury Department’s “strategic plan” includes working to reform the government-sponsored enterprises and establishing a new position for a chief risk officer, according to a memo by Mary Miller, the Treasury’s undersecretary for domestic finance. The memo was dated Sept. 16 and uncovered this week by Bloomberg News. Reliable sources confirmed the accuracy of the report. According to the memo, the Treasury plans...

Legislative sources say the partial government shutdown did not significantly impede the Senate Banking Committee’s work toward finding a solution to Fannie Mae and Freddie Mac.

The government-sponsored enterprises should revise their representation and warranty policies, including setting a two-year sunset, according to the Urban Institute’s new Housing Finance Policy Center. The move could reduce underwriting overlays set by lenders and increase credit availability. “We would expect to see a small but perceptible widening of credit in the months ahead, but it’s going to be very small until we solve the rep and warrant issue and the regulatory uncertainty issue,” said Laurie Goodman, director of the HFPC, during an event to launch the center. As directed by the Federal Housing Finance Agency, Fannie Mae and Freddie Mac this year established...

The securitization of income-property mortgages in 2013 remains on track to be the best year since the financial market meltdown, but new issuance dropped sharply during the third quarter. A total of $33.16 billion of commercial MBS – including agency MBS backed by multifamily mortgages – were issued during the third quarter of 2013, a new Inside MBS & ABS analysis reveals. That was down 24.5 percent from the second quarter, but it brought year-to-date issuance to $123.89 billion, just shy of the total securitized in all of 2012. Commercial mortgage securitization through the first nine months of 2013 was...[Includes one data chart]

A total of $33.16 billion of commercial MBS – including agency MBS backed by multifamily mortgages – were issued during the third quarter of 2013, a new Inside MBS & ABS analysis reveals.

Expect an “across the board” reduction in Fannie Mae’s and Freddie Mac’s conforming loan limits sometime next spring, said Edward DeMarco, acting director of the Federal Housing Finance Agency, during a speech late this week. DeMarco telegraphed his loan limit decision for 2014 – which he will announce in late November – during remarks at a daylong conference sponsored by Zillow and the Bipartisan Policy Center. While the new limits will be announced in late November, the traditional timing of the announcement, the agency will give sellers six months to implement them. “Any reduction would be...