Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]
This week the Federal Housing Finance Agency asked for input on Fannie Mae and Freddie Mac’s proposed Duty to Serve Plan modification for 2018-2020. Fannie’s proposal includes modifying actions to reflect revised rural investment targets based on enhanced market insight and experience since re-entering the low-income housing tax credit (LIHTC) equity market. Fannie also proposes making low income housing tax credit equity investments in 20 properties in 2018, 30 properties in 2019 and 30 properties in…
Non-agency mortgages underwritten with just one monthly bank statement from the borrower might not meet standards set by the ability-to-repay rule, according to Eric Kaplan, director of the housing finance program at the Milken Institute’s Center for Financial Markets. Speaking at the ABS East conference produced by Information Management Network last week in Miami Beach, Kaplan was among the industry participants that raised concerns about how quickly underwriting has loosened ...
Deephaven Mortgage’s recent adoption of an automated system to pre-qualify expanded-credit borrowers has prompted some speculation about whether fully automated underwriting systems could be used for originations of non-qualified mortgages. A number of expanded-credit lenders at the ABS East conference suggested that some automated underwriting is possible, but some aspects of the non-QM underwriting process will likely need human intervention. The conference was ...
It appears that the Senate is ready to tackle industry complaints about Fannie Mae and Freddie Mac pilot programs. The Senate Banking Housing and Urban Affairs Committee announced this week that they will hold a hearing on Oct. 18 to discuss the oversight of pilot programs at the government-sponsored enterprises. …
Fannie Mae and Freddie Mac shareholders received a bit of good news late last week when a judge sided with them on one of their arguments against the government.
Real estate investment trusts, searching for yield, are looking to expand their role in the non-qualified mortgage market, with an eye toward providing greater liquidity to nonbank originators.
Years of preparation for single security issuance by Fannie Mae and Freddie Mac appear to be paying off as officials involved in the effort suggest that the government-sponsored enterprises and industry participants appear ready for the transition.
Some participants in the MBS and ABS markets aren’t doing enough to prepare for the potential discontinuation of the London Interbank Offered Rate, according to industry analysts.
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