In late December, Freddie Mac issued a $934.27 million security backed by seasoned mortgages. It was the first seasoned credit-risk transfer from the government-sponsored enterprise. While Freddie has issued fully guaranteed securitizations backed by seasoned mortgages, Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2016-1 included tranches without a guarantee from the GSE, similar to a non-agency senior-sub MBS. The transaction included...
The incoming Trump administration has yet to pick a new president for Ginnie Mae, but foreign investors will be keeping a close eye on the selection for the simple reason they own a ton of the agency’s MBS. According to Sept. 30 figures provided to Inside MBS & ABS, foreign investment in Ginnie MBS is now at a record $552 billion, or roughly 35 percent of all outstanding securities. The agency could not provide...
The only word from the incoming Trump administration about the fate of Fannie Mae and Freddie Mac is that the prospective Treasury secretary wants to bring them out of conservatorship. The Obama administration, however, commits only to preserving an explicit government guarantee for a “defined class” of MBS. “The explicit government guarantee would be funded by financial institutions and would act as insurance against catastrophic losses,” said the Treasury in a late December blog posting by Jane Dokko, deputy assistant secretary for financial economics, and Sam Valverde, a counselor in the Office of Domestic Finance. However, the authors don’t elaborate on what would shape the defined class. Under the new guarantee, investors would be assured...
VA Extends Making Home Affordable Program. The Department of Veterans Affairs has extended the Making Home Affordable program to Oct. 1, 2017. The program was set to expire on Jan. 1, 2017. USDA Approves NewFed Mortgage to originate Section 52 Guaranteed Rural Housing Loans. The U.S. Department of Agriculture has approved NewFed Mortgage Corp., a multi-state residential mortgage lender, to originate USDA loans. Based in Danvers, MA, retailer NewFed offers FHA, VA, USDA, conventional and jumbo mortgage products. Reviews Genworth Financial’s Proposed Sale to Chinese Conglomerate. Fannie Mae has approved Arch Capital’s acquisition of ...
Mortgage lenders delivered a hefty $299.25 billion of single-family home loans into the mortgage-backed securities platforms at Fannie Mae and Freddie Mac during the fourth quarter of 2016, according to a new Inside Mortgage Finance analysis and ranking. Production in the final three months of 2016 was up just 5.7 percent from the third quarter at the two government-sponsored enterprises. But it was the biggest output since the second quarter of 2013, when the mortgage market was wrapping up a 12-month binge of activity with $337.74 billion in Fannie/Freddie MBS issuance. The strong finish – GSE business was up in each quarter of 2016 – put...[Includes three data tables]
A year from now, PHH Mortgage likely won’t be around, at least not as a conventional mortgage-banking franchise that originates residential loans and retains servicing rights. That’s what analysts and investment bankers who follow the stock now believe, especially in light of the company’s recent announcement that it will sell its $72 billion portfolio of Fannie Mae/Freddie Mac mortgage servicing rights to New Residential Investment Corp. for $612 million or 84 basis points. Once completed, the sale – along with a pending disposal of its Ginnie Mae MSR – will leave...
The Federal Housing Finance Agency late last month issued two final rules that will give the Federal Home Loan Banks somewhat more flexibility in setting collateral requirements for advances and managing their acquired member assets (AMA). A new AMA rule was necessary because the Dodd-Frank Act requires financial regulators to remove references to ratings, which had been used in setting limits on their AMA programs, most of which involve purchases of mortgages from member institutions. Under the new rule, the FHLBanks will be able to choose their own models to determine credit enhancement requirements. The FHFA also deferred...
RSS