Ginnie Mae has proposed revising its buyout policy to eliminate inconsistencies in servicers’ repurchase practices and to discourage early buyouts of seriously delinquent loans from Ginnie MBS. Under the current policy, Ginnie Mae issuers may buy out delinquent loans if the borrower fails to make any payment for three consecutive months. However, many issuers have been applying the policy inconsistently, according to Michael Drayne, senior vice president for issuer and portfolio management at Ginnie Mae. Some servicers have been interpreting...[Includes one data chart]
Freddie Mac this week issued $1.04 billion of MBS backed by modified loans, making a small dent in the government-sponsored enterprise’s portfolio of distressed mortgages. The securities were issued under a new MBS prefix reserved just for modified loans, and Freddie officials indicated that the securities would be held in portfolio rather than sold in the market. All of the modified loans are fixed-rate mortgages, although $138.2 million of the loans were originally adjustable-rate mortgages. Most of the loan mods have 30-year terms. The loans in the first batch of mod MBS were originated...
When was the last time a financial institution operating under a government conservatorship started a new company, one that potentially stands to make a bunch of money, given the rapidly improving mortgage market? Answer: Never. This and other questions are being asked by mortgage executives who are trying to track the progress of the Federal Housing Finance Agency’s common securitization platform, a joint venture between Fannie Mae and Freddie Mac. FHFA officials...
Even as industry chatter increases about an effort to extend the eligibility date of the Home Affordable Refinance Program, analysts speculate that more HARP may be too much of a good thing for the mortgage market. Analysts at Bank of America Merrill Lynch and Keefe, Bruyette & Woods cite evidence of a “creeping goal line” to move back by 12 months the June 1, 2009, cut-off date for HARP eligibility. KBW cites a Saturday morning address by President Obama earlier this month on the subject of refinance. “While he did not specifically mention extending HARP, we think an announcement could be coming over the next few weeks to extend the eligibility back one year,” said KBW. More telling, said BAML, is...
The $443 million non-agency MBS, Chase’s second of the year, is set to receive AAA ratings with credit enhancement ranging from 6.90 percent to 10 percent for the top tranches.
Analysts at Bank of America Merrill Lynch and elsewhere cite evidence of a “creeping goal line” to move back by 12 months the June 1, 2009, cut-off date for HARP eligibility.
The mortgage M&A market is heating up and not just in the lending space. Moreover, a large insurance company is contemplating an entry into the business.
Ginnie Mae issuers may buy out mortgage loans that are due but unpaid for four consecutive installments even if the borrower has made partial payments.
The lack of a specific computer code for reporting short-sale mortgage transactions is creating numerous false reports of foreclosure on consumer credit reports, inhibiting their re-entry into the housing market, according to lawmakers on Capitol Hill and consumer advocates. Earlier this month, Sen. Bill Nelson, D-FL, dispatched letters to the Federal Trade Commission and the Consumer Financial Protection Bureau citing the “disturbing” consumer credit reporting practice of lumping short sale within the same industry code as a foreclosure in consumers’ credit reports. “If a short sale is reported...
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