The Fannie product also had less expensive mortgage insurance and allowed the borrower to cancel the policy once the LTV reached 80 percent of the home’s value.
New issuance of agency single-family MBS climbed for the eighth consecutive month in October, according to a new Inside MBS & ABS analysis and ranking. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $93.01 billion of new single-family MBS during October, up 2.1 percent from September. October production was the highest monthly volume for the market since October 2013, and reflected steady growth since new issuance bottomed out in March of this year. But the gain was...[Includes two data charts]
As Fannie Mae and Freddie Mac continue to expand their credit-risk transactions, the two government-sponsored enterprises and their regulator should look to other ways to minimize credit risk, industry insiders told attendees of an Urban Institute/CoreLogic housing forum this week. In its most recent strategic plan for the GSEs, the Federal Housing Finance Agency is calling on Fannie and Freddie to reduce their exposure to risk by tripling the amount of credit-risk transfers they conduct on their single-family business from $30 billion last year to $90 billion in 2014. Mark Hanson, Freddie’s senior vice president, securitization, told...
Rating agencies and Wall Street firms are paying close attention to the mounting regulatory problems at Ocwen Financial, fearful that more bad news could lead to servicing downgrades, which in turn could hamper its ability as a master servicer of MBS. One servicing advisor who has worked with Ocwen over the past two years noted that Fannie Mae and Freddie Mac pay close attention to the master servicing ratings of their counterparties. “You have to maintain minimum ratings and if you don’t – there’s going to be trouble,” he said. Downgrades, he added, can lead...
The mortgage industry cannot and should not wait for Congress to get around to a legislative solution to the government-sponsored enterprises when much of what is necessary can be accomplished administratively, according to experts at a forum hosted by the Urban Institute and CoreLogic. Andrew Davidson, president of Andrew Davidson & Co., noted that among the lessons of this year’s failure to launch a Senate GSE reform bill is that lawmakers find it easier to agree on a set of principles for a mortgage finance system than on the system’s design. With legislation a long shot before the 2016 presidential elections, Davidson said...
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