The supply of “conforming-jumbo” mortgage originations flowing into agency mortgage-backed securities programs contracted sharply in the fourth quarter of 2015, but overall jumbo lending still held up better than the overall market, according to a new Inside Mortgage Finance analysis. During the final three months of 2015, Fannie Mae, Freddie Mac and Ginnie Mae securitized $24.69 billion of mortgages with loan amounts that exceeded the baseline conforming loan limit, $417,000… [Includes three charts]
PennyMac Mortgage Investment Trust recently entered into its third front-end risk-sharing trans-action with Fannie Mae. The real estate investment trust said it has seen strong returns from such deals, potentially paving the way for other lenders to directly share credit risk with the government-sponsored enterprises. The third credit-risk transfer agreement between PennyMac and Fannie involves $5.0 billion in unpaid principal balance of mortgages acquired by the nonbank from correspondents. In a slide presen-tation, the REIT said it expects to invest $175.0 million as part of the CRT deal. PennyMac also recently completed deliveries into its second CRT transaction with Fannie. The agreement involved mortgages with an unpaid principal balance of $4.25 billion and a $149 million in-vestment by the REIT.
In dollars and cents, additional spending at Fannie totaled $726 million over the four-year period, while at Freddie the reading was a more benign $376 million.
RSS