The implication is that banks – which seems to have excess capacity on their balance sheets – could simply hold conventional loans in portfolio…

A huge chunk of the fall-off in Fannie/Freddie MBS holdings occurred at Wells Fargo, which reduced its investment in these securities by $7.31 billion.

Making sure the MBS issued by the two GSEs perform identically, within narrow limits, is key to convincing traders…

Mortgage lenders that rely on cutting-edge financial technology – or fintech – may be just as guilty as traditional face-to-face lenders of pricing discrimination, according to a new study by economists at the University of California at Berkeley. The researchers found that both traditional and online lenders charge Latino and African-American borrowers 6 to 9 basis points higher interest rates than their white counterparts for purchase-mortgage loans, and 1 to 3 bps more for refinancing ...

The rise in home prices is boosting the payouts mortgage holders will see from loans that included principal forbearance as part of a modification. According to an analysis by Fitch Ratings, the current overall recovery rate for outstanding forbearance amounts on loans in non-agency mortgage-backed securities is estimated at 19.0 percent. Principal forbearance, or principal deferral, has been one of the most common loan modification tactics in the years after the financial crisis. It allows a ...

A Chicago-based specialty mortgage servicer is combining crowdsource funding and loss mitigation to help homeowners facing foreclosure keep their homes while at the same time encouraging investors to be socially responsible. AHP Servicing recently announced a $50 million offering under Regulation A of the federal Jumpstart Our Business Startups Act, to help distressed homeowners avoid foreclosure. Reg A is one of several exemptions under the JOBS Act that excludes firms from ...

It’s that time of the year again: Declining originations mixed with seasonality are causing consternation among residential originators, with lay-off notices proliferating at shops both large and small. However, a greater sense of panic is beginning to seep in this time around. Rates are the highest they’ve been in several years and the purchase-money sector is beginning to look long in the tooth. The nation’s largest home lender, Wells Fargo, recently announced plans to chop 900 ...

Rising interest rates aren’t a major inhibitor of demand for purchase mortgages but they have reduced housing inventory, according to Mark Fleming, chief economist at First American. “Rising mortgage rates create a financial disincentive for existing homeowners with low mortgage rates from selling their homes,” he said in an analysis this week. “This phenomenon impacts both sides of the supply-and-demand dynamic – those who don’t sell, don’t buy either.” First American, a title insurance ...

Retail-originated loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the third quarter generally had stronger credit scores than similar loans produced by third-party lenders, according to a new Inside Mortgage Trends analysis of loan-level data. The average credit score for a retail purchase loan pooled in an agency mortgage-backed security during the period was 735.47, compared with 720.20 for correspondent purchase ... [Includes two data charts]

Fannie Mae and Freddie Mac extended disaster relief provisions to areas in California that have been ravaged by wildfires and declared major disaster areas by President Trump.