With the Consumer Financial Protection Bureau bringing its considerable weight to bear on e-mortgages as part of a broader push to reinvent the origination process, mortgage lenders and the technology vendors and consultants that serve them have been paying more attention to reconstituting existing processes to support a more digital format. E-signatures play a key role, and perhaps the single most critical component of e-signature technology is user authentication ...
California generated more than twice as many home loans that carried some form of primary mortgage insurance than any other state, but relatively few loans there are actually insured, according to a new Inside Mortgage Trends analysis. A total of $45.45 billion of insured California loans were securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the first six months of 2015. Second-place Texas had less than half that amount, $20.15 billion ... [Includes one data chart]
In preparation for more risk sharing, including its first actual-loss transaction, Fannie Mae released an updated, more detailed single-family loan performance dataset last week to provide more transparency to the market. The GSE plans to move away from fixed severity deals to an actual-loss framework for its Connecticut Avenue Securities risk-sharing deals as early as the fourth quarter of 2015.The enhanced dataset will include credit performance up to and including property disposition, including credit event dates, costs incurred and Fannie’s recovery proceeds. Until now, Fannie risk-sharing transactions used pre-set loss severity schedules to determine investor loss exposure.Laurel Davis, vice president for credit risk transfer at Fannie, said the GSE is providing access to the data now in order to give the market...
Heavy refinance activity in the first half of 2015 caused a significant shift in the kinds of single-family MBS produced by Fannie Mae, Freddie Mac and Ginnie Mae. Issuance of MBS backed by adjustable-rate mortgages has dropped sharply in 2015, and ARMs haven’t had much of a presence for years. ARM MBS production by Fannie and Freddie in the first half of 2015 was down 20.1 percent from a year ago. The drop in Ginnie ARM securitization was less severe, 18.3 percent, but ARMs accounted for an even smaller share of overall production (1.7 percent) at Ginnie than the 2.9 percent share they had in government-sponsored enterprise MBS. Oddly, the heavy refinance market in the first half of 2015 did not appear...[Includes two data tables]
Over the past few weeks, an unconfirmed rumor was making the rounds that Bank of America would once again begin securitizing newly originated mortgages through Fannie Mae. But a quick check with both parties indicates that the “cold war” between the two isn’t likely to thaw anytime soon. Terry Francisco, a spokesman for BofA said the bank is only selling Home Affordable Refinance Program loans to Fannie. The bank, he noted, discontinued securitizing newly originated non-HARP loans through the government-sponsored enterprise in 2012. According to figures compiled by Inside MBS & ABS, over the past three years almost all of the non-refinance activity between the two has centered...
DBRS published proposed criteria this week to rate ABS backed by proceeds from Property Assessed Clean Energy programs. While the Federal Housing Finance Agency continues to place PACE-related prohibitions on mortgages delivered to the government-sponsored enterprises, the rating agency suggested that PACE programs are designed with a number of protections. Comments on the proposed criteria from DBRS are due Sept. 8. The firm would join Kroll Bond Rating Agency in offering ratings on PACE securitizations. KBRA has rated four PACE deals, the first of which was issued in March 2014 and all of which have received AA ratings. The PACE deals rated by KBRA were related...
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