Fannie Mae and Freddie Mac low-downpayment programs have been in the market for almost two years now but they haven’t been getting a lot of mileage. Although numbers picked up in the third quarter, some say the programs need to be simplified in order to promote more usage. The GSEs purchased $10.31 billion of purchase mortgages with loan-to-value ratios of 96 to 97 percent through Sept. 30, 2016, according to an Inside Mortgage Finance analysis of mortgage-backed securities data. However, nearly half of that came in the third quarter, which saw a 52.7 percent jump from the previous period. Fannie’s HomeReady program and Freddie’s Home Possible Advantage products were designed to help creditworthy, low- and moderate-income buyers.
Fannie Names RPL Winner: Fannie Mae announced this week that Towd Point Master Funding (Ceberus) is the winning bidder for its first reperforming loan sale. The sale included approximately 3,500 loans totaling $789.2 million in unpaid principal balance, split into two pools. Towd won both pools and the transaction is expected to close on Dec. 15, 2016. In collaboration with Citigroup Global Markets Inc., Fannie began marketing these loans to potential bidders on Oct. 11, 2016. The RPL sale is part of its efforts to reduce the size of the GSE’s balance sheet. Bob Ives, vice president of retained portfolio asset management, said, “We are pleased to see a high level of investor interest in our reperforming loans.”
Second-ranked AGNC Investment Corp. – formerly American Capital Agency Corp. – reported a 2.2 percent increase in its MBS holdings under a new management structure…
Market analysts, observers and participants alike feel pretty much in the dark about what to expect from Republican President-elect Donald Trump when it comes to the fate of government-sponsored enterprises Fannie Mae and Freddie Mac. “Mortgage finance legislation and the future of the GSEs was never discussed during the campaign so there are no clear indicators of what a Trump administration will do regarding the future of Fannie Mae and Freddie Mac,” analysts at Keefe, Bruyette & Woods said in a post-election review. Complicating life for the new regime is...
Freddie Mac and Shellpoint Partners are preparing to price new securities in the aftermath of the presidential election, and Select Portfolio Servicing priced $600.0 million in an MBS backed by servicer advance receivables this week. Freddie is about to issue a Whole Loan Securities transaction, which would mark the second such issuance from the government-sponsored enterprise this year and the fourth overall, dating back to the first WLS transaction that closed in July 2015. The balance of the planned Whole Loan Securities Trust, Series 2016-SC02, is...
As the new breed of subprime lenders continues to increase originations, these firms are now actively pondering whether they should approach the rating agencies about getting their firms rated. Dan Perl, founder and CEO of nonprime/non-QM lender Citadel Servicing, Irvine, CA, said his firm has approached Fitch Ratings and hopes to get rated as both a servicer and originator. Perl believes some of his competitors are going down the same path as well. He told...
Credit Suisse issued two more series of notes this week on its mortgage-lending warehouse securitization offering, according to Moody’s Investors Service. The $1.20 billion in total new issuance from the Wall Street firm followed two notes it issued in August totaling $800 million. As with the August issuance, the new Mortgage Repurchase Agreement Financing Trust, Series 2016-3 and Series 2016-4, received A2 ratings from Moody’s. All of the deals were underwritten by Credit Suisse and HSBC Securities. The transactions are backed...
Money market funds held $114.98 billion of Fannie Mae and Freddie Mac paper at the end of the third quarter, including MBS issued by the two government-sponsored enterprises and debt notes. The September figures represented a 5.7 percent increase from the midway point in the year and an 8.8 percent climb from a year ago. Freddie MBS and debt remained more popular, accounting for 60.1 percent of the sector’s GSE holdings. The data are...[Includes one data table]
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