Sellers/servicers of Fannie Mae and Freddie Mac will get a reprieve from immediately meeting the technical requirements associated with the Truth in Lending Act Real Estate Settlement Procedures Act Integrated Mortgage Disclosure Rule that took effect Oct. 3. Just a few days after the rule went into effect both GSEs issued guidance intended to reach anyone concerned about quality- control reviews while lenders absorb TRID into their business routines, said Brad German, spokesman for Freddie. The letter noted that in recognition of some seller/ servicers continuing to work toward implementing technical requirements of the rule, the GSEs won’t conduct routine post-purchase loan file reviews for technical compliance. After a transitional period, however, they will consider whether to begin such reviews for technical compliance.
After a long, steady decline in their combined market share, the top five sellers of home mortgages to Fannie Mae and Freddie Mac posted a modest increase during the third quarter of 2015. The top five sellers delivered $67.66 billion of loans to the two government-sponsored enterprises during the period for a 30.3 percent share of the market, according to a new Inside Mortgage Trends analysis. That was up from 29.8 percent in the second quarter and ... [Includes two data charts]
Reforming Fannie Mae and Freddie Mac is likely not in the cards for this Congress. Speaking at a housing finance forum sponsored by the Bipartisan Policy Center in Washington this week, Sen. Bob Corker, R-TN, said he doesn’t expect any changes over the short term. “It’s going to be a while. It’s not going to happen over the next year and four months,” he said. “Both sides don’t want to address a tough issue.” The Republican from Tennessee added that lawmakers from both sides of the aisle are avoiding the issue. Sen. Mark Warner, D-VA, also speaking at the event, said while there may not be any legislation in the near future, he’s hopeful for some type of incremental movement.
Fannie Mae and Freddie Mac released a new policy this week in hopes of providing clarity on correcting loan origination defects and solutions to the mortgage buybacks that have plagued lenders over the years. Based on input from lenders, the GSEs took the next step to lessen loan buyback risk and will now categorize defects in terms of “findings, price-adjusted loans, and significant defects.” Under the new “origination defects and remedies framework,” findings will not require a correction or a remedy from the seller as they are negligible defects that had no effect on whether the loan was acceptable to Fannie or Freddie. Those mortgages with one or more defects that are labeled price-adjusted loans would have been eligible for sale to the GSEs if...
“Greater up-front harmonization of the GSEs’ policies and procedures is not only necessary, but fundamental to the success of the single-security initiative,” according to the Structured Finance Industry Group.
The guidance doesn’t “tells us anything more than where we were an hour before this guidance came out," according to Michael Barone, a director of legal and regulatory compliance at Lenders Compliance Group.
Over the past two years, roughly $13 billion in securities backed by single-family rental properties have come to market, a good start for a business that barely existed five years ago. But despite that growth, there are concerns that the “easy money” could be behind the sector. Some of that concern stems from the flood of entrants into the single-family rental market – a boom that turned red hot in 2012 and 2013 when it was first revealed that institutional investors such as The Blackstone Group and others were buying thousands of properties in once decimated housing markets with an eye toward renting them out. When investors began issuing securities backed by the rent rolls, even more money began pouring...
Pizza, hamburgers and doughnuts have helped fuel a record year for whole-business securitization. The deals, which gained some popularity among investors before the financial crisis, are backed by franchise royalty and license payments. Late last week, Standard & Poor’s assigned a preliminary BBB+ rating to the planned $1.63 billion Domino’s Pizza Master Issuer LLC 2015-1. The whole-business securitization will be backed by franchise royalty and license payments, Domino’s intellectual property, and profits from distribution arrangements. Earlier this year, Dunkin Brands issued...
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