Roughly $20 billion in mortgage servicing rights are now available for bulk purchase in the secondary market compared to just a few billion a month ago. The reason: higher interest rates. According to servicing advisers interviewed by Inside Mortgage Finance this week, the 75 basis point jump in rates since the election has suddenly transformed a glum-looking market into one that has great potential. “There’s...
Legislation introduced in the last weeks of the 114th Congress would push Fannie Mae and Freddie Mac deeper into the risk-sharing pool, including forcing them into a front-end structure they have so far resisted. The “Taxpayer Protections and Market Access for Mortgage Finance Act of 2016” would require the Federal Housing Finance Agency to push the two government-sponsored enterprises to transfer at least 400 basis points of their total risk. While it’s not clear how the legislation intends this to be measured, it appears...
The Federal Reserve late last week reported a modest 0.6 percent increase in the volume of single-family mortgages outstanding during the third quarter of 2016, the fifth straight quarterly gain in a market finally recovering from the housing meltdown. Still, at $10.123 trillion, the supply of mortgage debt outstanding was $1.118 trillion below the level it reached at the end of 2007. Most of the growth in the third quarter came...[Includes two data tables]
Fannie Mae and Freddie Mac will launch pilot programs to purchase personal loans tied to manufactured housing under the final duty-to-serve regulation released this week by the Federal Housing Finance Agency. The duty-to-serve requirement was mandated by Congress eight years ago but has never been implemented. The government-sponsored enterprises will devise three-year plans for serving low- and moderate income households in three underserved areas: manufactured housing, affordable housing preservation and rural housing. Like the annual affordable housing goals set for the GSEs, the duty-to-serve requirement does not include...
Chase, which often has wide swings in its monthly GSE activity, increased its Freddie issuance by 46.1 percent from October to November, while reducing its Fannie activity by 2.5 percent.
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