Treasury controls the senior preferred stock of the GSEs. The junior preferred and common continues to trade in the over-the-counter market and through private transactions. The latter two classes of stock are considered speculative in nature.
The FHA’s 203(k) Property, Repair and Rehabilitation program saw a significant increase in activity in the third quarter of 2016, both relative to the previous quarter and from the same period a year ago. Origination of FHA-insured fixer-upper loans jumped 16.2 percent from the previous quarter, bringing the nine-month production total to $2.4 billion. On a year-over-year basis, volume rose 6.9 percent. The top five FHA 203(k) lenders saw a 52.5 percent increase in originations in the third quarter, totaling $202.1 million. Year-over-year, production by the same group was off by 13.1 percent. Purchase loans accounted for $2.2 billion of 203(k) mortgages originated by lenders over the nine-month period while refinance rehab loans accounted for $237.9 million. Billion-dollar weather and climate disasters may have contributed to the surge in 203(k) business. As of September 2016, 12 weather and ... [Chart]
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