The Federal Housing Finance Agency is backing recommendations for additional authority that would allow it to examine third parties that do business with Fannie Mae and Freddie Mac. In its 2016 Annual Report to Congress released this week, the FHFA said it concurs with recommendations made by both the Government Accountability Office and the Financial Stability Oversight Council that Congress grant the agency authority to oversee the entities that provide critical services to the government-sponsored enterprises. While counterparty oversight is critical to the safety and soundness of the GSEs, it is...
“By limiting the volume of securities that private investors will have to absorb as we reduce our holdings, the caps should guard against outsized moves in interest rates and other potential market strains,” said Fed Chairman Janet Yellen.
The retail production channel continued to churn out an unusually large volume of refinance loans during the first quarter of 2017, according to an Inside Mortgage Trends analysis of loan-level data on mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae during the period. Some 60.5 percent of retail originations were refinance loans, compared to just 37.6 percent of correspondent production. The analysis excluded modified loans, mortgages with no identified channel and loans more…
Fun fact: Ginnie Mae servicing now represents 16.5 percent of all residential debt outstanding – more than triple the program’s market share at the end of 2008.
The agency servicing market grew steadily in the first quarter of 2017, as the business continued to slide toward nonbanks, a new Inside Mortgage Finance analysis reveals. The Federal Reserve late last week reported that total residential mortgage debt outstanding rose 0.7 percent during the first quarter, hitting $10.330 trillion. It marked the eighth consecutive quarterly increase since the sector hit its post-crash low in March 2015 at $9.912 trillion. Most of the growth came from the agency market, although portfolio holdings – including nonbanks – were...[Includes two data tables]
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