Residential lenders issued a record $435.8 billion of Ginnie Mae securities in 2015, according to Inside MBS & ABS, a handsome 47 percent increase from the prior year.
In the end, 2015 produced a solid, if unspectacular, supply of new agency single-family MBS and non-mortgage ABS after peaking in the second quarter of the year. A total of $1.498 trillion of single-family MBS and non-mortgage ABS were issued in 2015, a 28.1 percent increase from the year before, according to a new Inside MBS & ABS analysis. But 2014 ranked as the weakest year since the financial meltdown, and the 2015 output was the fourth lowest in the 21st century during a period of historically low interest rates and steady economic growth. Most components of the market slowed...[Includes three data tables]
An industry advisory group formed to provide input on the development of the common securitization platform and single security for Fannie Mae and Freddie Mac to-be-announced MBS held its second meeting in December and addressed a wide range of industry concerns. A letter sent to the group by the Housing Policy Council raised questions about the timing of issuance of the single security, policy alignment between the two government-sponsored enterprises and the opportunities for public input and participation. The advisory group noted...
Nonbank lenders accounted for nearly half (48.7 percent) of the single-family mortgages securitized by Fannie Mae and Freddie Mac during the fourth quarter of 2015, according to a new Inside The GSEs analysis of mortgage-backed securities disclosures. The nonbank share of new GSE business has been on a steady march higher over the past few years as the top tier of depository institutions has repositioned their mortgage strategies and more lenders have participated directly in the securitization process. Back in 2013, nonbanks accounted for just 31.0 percent of new Fannie/Freddie business. The momentum did slow somewhat in 2015, however. After boosting their aggregate share by 12.9 percentage points to 43.9 percent in 2014, the nonbank...
While Fannie Mae recently said it would announce details this year about its plan to let lenders pay a risk fee as an alternative to repurchase for some defective loans, Freddie Mac said it’s “business as usual” and the GSE doesn’t plan to make lenders pay a fee for retaining some loans with defects. “We did look at charging a fee, but we believe we have an alternative of recourses, which means the lenders are not paying any fee up front, and if the loan performs there is no repurchase,” Christopher Mock, Freddie’s vice president of quality control, told Inside The GSEs. He said this allows the lender and the GSE to walk together down the performance trail of the loan.
Fannie Mae plans to move its Dallas headquarters to nearby Plano, TX, and consolidate three area offices into one new location by sometime in 2018, thanks to an improvement in loan quality resulting in the need for less staff. The Dallas-based offices are focused on mortgage servicing, working with borrowers if they’re behind on their mortgages and managing foreclosed properties. But with foreclosures lessening, plans include downsizing office space from about 450,000 square feet to an approximately 300,000-square-foot office. “It’s important to have our teams in one place to do that work together,” said a GSE spokesman who confirmed the move.
Fannie Mae has changed the guidelines for loans with age-related resale restrictions in response to lenders’ requests about second homes and investment properties in these communities. Currently, Fannie limits occupancy on a loan with resale restrictions to a borrower’s one- and two-unit principal residence, but it has now expanded the eligibility to permit all occupancy types. The GSE said this will allow borrowers to purchase a property for the benefit of older family members or for future use. It said the criteria of the deed restriction must continue to be met and those requirements typically apply to the unit occupant and often requires just one resident to be 55 or older.
Freddie Announces New Alliance with Lenders One. Freddie Mac has teamed up with Lenders One Mortgage Cooperative, based in St. Louis, to give Lenders One members who are Freddie seller/servicers pricing and execution benefits, enhanced access to mortgage products, and professional training and development opportunities. Freddie did not provide additional details on specific pricing benefits .Chris Boyle, senior vice president of single-family sales and relationship management at Freddie, said Freddie Mac is pleased to “help its members reach more eligible borrowers, achieve new efficiencies in the origination process and build strong, competitive businesses.” In related news, Lenders One is still...
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