The government-sponsored enterprises Fannie Mae and Freddie Mac are issuing multifamily MBS in 2016 at a rate that should approach and perhaps exceed $100 billion by the end of the year, according to the latest data and projections from the pair. That compares with a Federal Housing Finance Agency GSE scorecard cap of $31 billion in volume for each, up $1 billion over last year. However, there’s a good bit of wiggle room there because Fannie and Freddie essentially have “capped” and “uncapped” buckets. The more active of the two, Fannie, churned out $12.6 billion of new multifamily MBS in the first...
Mortgage trading desks the past few months have seen a noticeable increase in whole loan trading tied to seasoned Fannie Mae and Freddie Mac loans, according to traders interviewed this week by Inside MBS & ABS. Jason Eisendrath, director of loan sale strategies for Mortgage Delivery Specialists, said the sellers include not only money-center banks, but credit unions. “The credit unions, in particular, are holding a lot of [government-sponsored enterprise] paper,” he said. MDS is a part of Mortgage Industry Advisory Corp., New York. It’s...
Fannie Mae revealed plans this week to securitize re-performing loans held on its balance sheet to manage its risk and reduce its portfolio. Loans that have been modified and are now performing, coupled with loans that have become current without the assistance of a modification program, will be included in the group. “Over the long run, these securitizations can benefit...
The Financial Accounting Standards Board has proposed technical corrections and changes to its codified accounting handbook for private companies, including revisions to guidance relating to FHA and VA loans as well as transfers and servicing of financial assets. The proposed updates respond to suggestions by stakeholders and affect a wide variety of topics in the Accounting Standards Codification, which was established in September 2009 as a comprehensive source of authoritative generally accepted accounting principles used by the private sector. Among other things, a proposed amendment to Subtopic 860-20, Transfers and Servicing – Sales of Financial Assets would add...
Fannie, Freddie and Ginnie continue to dominate in multifamily mortgage securitization, capturing a combined 93.6 percent of the market in the first quarter.
Christopher Whalen, senior managing director at KBRA, noted that most of the megabanks “are showing lower mortgage banking lines, which includes MBS desk P&L [profit and loss]. Gain-on-sale is also down about 50 percent year-over-year, so that’s another factor in the balance.”
Although many banks wrestled with hedges for their mortgage servicing rights and loan production was generally down, the industry posted a solid increase in mortgage-banking earnings in the first quarter. A new Inside Mortgage Trends analysis of earnings reports filed by 26 major banks showed a combined $3.450 billion in mortgage-banking income during the first quarter. That was up 12.3 percent from their fourth-quarter earnings of ... [Includes one data chart]
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