Correspondents are an especially good source of purchase mortgages. During the third quarter, purchase mortgages accounted for over half (50.5 percent) of correspondent-originated loans securitized by Fannie Mae and Freddie Mac.
KBRA pointed out that one jumbo MBS issuer said it will accept mortgages where lenders have implemented procedures to either close the loans with an exception or review IRS transcripts post-closing.
FHA and VA are urging mortgagees and lenders to extend all possible assistance to borrowers who have been furloughed, laid off or suffered a decline in income because of the government shutdown.
Even due diligence firms such as Allonhill LLC of Denver have trimmed staff because their bank clients no longer need to conduct as many forensic reviews on legacy loan files. Allonhill was recently sold to Stewart Title, which hopes to grow the firm’s presence in the jumbo and nonconforming sectors.
Mortgage banking officials tracking the issue believe that if the agency is going to lower Fannie Mae/Freddie Mac loan limits for 2014 it will need to codify those changes by mid- to late October to give lenders time to update their technology systems.
Seven different issuers generated a relatively strong $3.94 billion in jumbo non-agency MBS during the third quarter, but the sector’s resurgence in 2013 seemed to be losing steam and faces an uncertain future. Jumbo MBS issuance declined 9.1 percent from the second quarter and one transaction – Shellpoint’s second of the year – was pulled back as September came to a close. Redwood Trust managed $1.18 billion in new issuance, a 34.1 percent drop from the second quarter, while the two other jumbo veterans, Credit Suisse and JPMorgan Chase, saw reduced production as well. Industry participants are divided...[Includes three data charts]
Officials at Fannie Mae said they learned from Freddie Mac when structuring their pending risk-sharing transaction, including getting the deal rated. Investors are generally impressed with the transactions and look forward to more. Fannie’s Connecticut Avenue Securities Series 2013-C01 is scheduled to close on Oct. 24, according to a presale report released late last week by Fitch Ratings. The higher of the two tranches offered for sale is set to receive a BBB- rating, the lowest investment grade rating available. Speaking at the ABS East conference produced by Information Management Network this week in Miami, Laurel Davis, a vice president at Fannie Mae, said...
Ginnie Mae this week acted quickly to dispel rumors of a plan to sunset the agency’s single-issuer MBS program, saying the report was nothing but unwarranted speculation. Agency officials assured participants during a Ginnie issuer and investor symposium in Austin, TX, earlier this month that the reports were untrue. The false buzz spooked the markets early this week, causing price spreads between Ginnie Mae I and II programs to narrow, officials acknowledged. In an Oct. 7 memo to program participants, Ginnie Mae clarified...
The nation’s top court this week may have sent a subtle hint to the more than dozen big bank defendants being sued by the Federal Housing Finance Agency when it flatly declined to receive their petition to dismiss their cases, notes a legal expert. The 13 financial institutions – including Bank of America, Deutsche Bank, Goldman Sachs and JPMorgan Chase – sought to argue before the Supreme Court of the United States that the FHFA waited too long when it filed suit against the banks in 2011 over non-agency MBS the government-sponsored enterprises purchased prior to the 2008 financial crisis. SCOTUS said...
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