Freddie Mac announced a new credit-risk transfer program this week that expands on the GSE’s popular Structured Agency Credit Risk offering and is more conducive to a variety of investor types, including real estate investment trusts. The $50 million STACR- Securitized Participation Interests transaction is unique in that it is backed by mortgage loans. “STACR SPI is another offering in our CRT toolbox to help shift risk away from taxpayers and give more options to investors who prefer a securitization backed by mortgage-related assets,” said Mike Reynolds, vice president of credit risk transfer.
Preferred Language Question Added to the URLA. The Federal Housing Finance Agency announced on Oct. 20 that it decided to add a preferred language question to the redesigned URLA. The regulator noted that the question will enable borrowers who prefer to communicate in a language other than English to identify that language. They said that it also provides clear disclosures that the mortgage transaction is likely to be conducted in English and that language resources may not be available. FHFA Director Mel Watt said following stakeholder outreach and input the agency has taken steps to mitigate concerns about the inclusion of a language preference question. Fannie Exec Withdrew Treasury Job Consideration. Brian Brooks, Fannie’s general counsel, decided to opt out of being...
The GSEs are also working toward issuing credit-risk transfer deals as real estate mortgage investment conduits, which would allow REITs to hold more of the assets.
Plenty of executives we’ve spoken to the past few months believe the industry is in for a considerable spate of M&A in the year ahead. Then again, we’ve heard that prediction before...
The secondary market in transfers of agency mortgage servicing rights continued to gain momentum during the third quarter of 2017 as long-time players in the mortgage industry executed plans to shift strategy. A new Inside Mortgage Trends analysis of agency mortgage-backed securities disclosures shows an estimated $150.80 billion of Fannie Mae, Freddie Mac and Ginnie Mae servicing changed hands during the third quarter. Much of the activity reflected ... [Includes three data charts]
A higher share of Baby Boomers are carrying mortgage debt in retirement than previous generations, prompting concerns about potential foreclosures and other financial issues, according to an analysis by Fannie Mae. “Even with the post-recession acceleration in free-and-clear homeownership, Boomers appear unlikely to attain mortgage-free retirements at the same rate as the predecessor generation,” Patrick Simmons, a director of strategic planning in Fannie’s economic ...
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