Fannie Mae remains on track to securitize $30 billion in multifamily loans this year, compared with nearly $34 billion in 2012, which would meet the FHFA scorecard target.
Fannie Mae plans to issue a $675 million risk-sharing securitization in a transaction that likely will hit the market by mid-October, according to potential investors who were briefed on the government-sponsored enterprise’s plans. Market participants said Fannie has contemplated issuing two such transactions by year-end, but the company isn’t talking about specifics, at least not yet. Still, the GSE is laying...
Potential investors have expressed strong interest in the pending risk-sharing deal from Fannie Mae and looking for tweaks in the structure recently used by Freddie Mac. Martin Hughes, CEO and director of Redwood Trust, noted that the real estate investment trust invested in Freddie’s Structured Agency Credit Risk transaction. He suggested two changes as the government-sponsored enterprises work to share risk with the non-agency market. Freddie’s STACR deal was structured...
Higher-priced mortgages accounted for a scant 1.0 percent of loan sales in 2012, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Originations of higher-priced mortgages increased slightly compared with 2011 but the growth didn’t keep up with the increase in overall originations. Higher-priced first liens have an annual percentage rate at least 1.5 percentage points above the average prime offer rate. Federal regulators use the metric as a proxy for subprime mortgages. Some $15.80 billion in higher-priced mortgages were sold...[Includes one data chart]
The Mortgage Bankers Association and other industry trade groups fear that the shutdown will have a growing impact on the housing market, including FHA endorsements.
However, if Fannie Mae determines through established delivery or quality-control review processes that any loan has ineligible term or amortization provisions, it will be subject to repurchase.
Large banks and some smaller shops continue to test the servicing sales market this fall, with bulk offerings from Citigroup and Flagstar garnering attention from investors. Industry advisors who track the market say Flagstar recently wrapped up bidding on a $12 billion package of mortgage servicing rights on newly originated loans. “These were pristine quality receivables, stuff that was funded over the past few months,” said one observer who saw the bid package. This summer, Flagstar – in an effort to capture the value of MSRs held on its balance sheet – sold...
The general consensus is that despite their conservatorship status, the GSEs are still considered private companies, even though Treasury controls their senior preferred shares.
Sellers to Fannie Mae and Freddie Mac will get a temporary, limited reprieve from repurchase requirements as the mortgage industry implements the Consumer Financial Protection Bureau’s ability-to-repay rule, according to new guidance from the two government-sponsored enterprises. “During the initial transitional period ..., Fannie Mae will not require repurchase of a loan on the grounds of noncompliance with the applicable QM-related points-and-fees eligibility requirement as long as it was otherwise eligible for acquisition,” the GSE said in a lender letter. “However, if a court of law, regulator or other authoritative body determines the loan exceeded the applicable QM-related points-and-fees limitation in violation of the CFPB final rule, such loan is subject to repurchase.” In addition, if Fannie determines...
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