Actual GSE sales volume for the top five was down 2.2 percent from the second quarter, but overall Fannie/Freddie business was down slightly more, 3.8 percent.
The mortgage refinance business began losing steam in the third quarter, but purchase-mortgage lending helped sustain agency single-family MBS production during the period, according to a new market analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae combined to issue $351.70 billion of single-family MBS during the third quarter of 2015, a slight 0.3 percent decline from the previous period. Even with the slowdown, year-to-date agency MBS volume of $976.40 billion had already topped the $929.49 billion in gross issuance for all of last year. The bright spot was...[Includes two data tables]
Wall Street remains concerned about the level of standardization of Fannie Mae and Freddie Mac operations in a single-security environment where investors would be expected to treat them as completely interchangeable. The Structured Finance Industry Group this week reiterated its concern about the Federal Housing Finance Agency’s plan to avoid “complete alignment” of the two government-sponsored enterprises’ operations. In a May 2015 update on the single security, the FHFA said it would carefully assess business decisions that could lead to different prepayment speeds, but that buy-out and removal policies at the two GSEs are essentially the same. That isn’t...
“Greater up-front harmonization of the GSEs’ policies and procedures is not only necessary, but fundamental to the success of the single-security initiative,” according to the Structured Finance Industry Group.
Reforming Fannie Mae and Freddie Mac is likely not in the cards for this Congress. Speaking at a housing finance forum sponsored by the Bipartisan Policy Center in Washington this week, Sen. Bob Corker, R-TN, said he doesn’t expect any changes over the short term. “It’s going to be a while. It’s not going to happen over the next year and four months,” he said. “Both sides don’t want to address a tough issue.” The Republican from Tennessee added that lawmakers from both sides of the aisle are avoiding the issue. Sen. Mark Warner, D-VA, also speaking at the event, said while there may not be any legislation in the near future, he’s hopeful for some type of incremental movement.
Fannie Mae and Freddie Mac released a new policy this week in hopes of providing clarity on correcting loan origination defects and solutions to the mortgage buybacks that have plagued lenders over the years. Based on input from lenders, the GSEs took the next step to lessen loan buyback risk and will now categorize defects in terms of “findings, price-adjusted loans, and significant defects.” Under the new “origination defects and remedies framework,” findings will not require a correction or a remedy from the seller as they are negligible defects that had no effect on whether the loan was acceptable to Fannie or Freddie. Those mortgages with one or more defects that are labeled price-adjusted loans would have been eligible for sale to the GSEs if...
Sellers/servicers of Fannie Mae and Freddie Mac will get a reprieve from immediately meeting the technical requirements associated with the Truth in Lending Act Real Estate Settlement Procedures Act Integrated Mortgage Disclosure Rule that took effect Oct. 3. Just a few days after the rule went into effect both GSEs issued guidance intended to reach anyone concerned about quality- control reviews while lenders absorb TRID into their business routines, said Brad German, spokesman for Freddie. The letter noted that in recognition of some seller/ servicers continuing to work toward implementing technical requirements of the rule, the GSEs won’t conduct routine post-purchase loan file reviews for technical compliance. After a transitional period, however, they will consider whether to begin such reviews for technical compliance.
Rental demand coupled with favorable demographic trends in most major markets has Freddie Mac predicting that the multifamily market will remain strong, at least for several more years, according to an outlook report released this week. Despite a large amount of new multifamily units entering the market this year, and a rise in construction permits, Freddie said the sector remains robust. The supply of multifamily properties has reached the highest level of completions in 2015 since the 1980s. Freddie said that demand has kept pace with new supply, calming concerns that growth might start to decelerate. The sector is in its sixth consecutive year of robust growth. Steve Guggenmos, senior director of Freddie’s multifamily investments and research, said...
The Federal Housing Finance Agency is tackling all things fraud related, from prevention to managing and detecting the various types of potential fraud, according to recently issued guidance to Fannie Mae and Freddie Mac. The FHFA warned that mortgage fraud may occur in loans purchased for the GSEs’ own portfolios or for securitization. Fraud can also be committed by a number of external and internal parties and can occur as part of the origination, underwriting, or closing process or in conjunction with the servicing of a loan on behalf of Fannie or Freddie.The GSEs’ boards of directors are responsible for making sure that the GSEs have appropriate policies in place for preventing and detecting fraud, according to the guidance.
RSS