Publicly traded REITs like Redwood Trust would fill the void if Fannie Mae and Freddie Mac lower loan limits next year. But they will be competing against portfolio lenders.
It appears the House of Representatives is giving up on GSE reform this year. However, the Senate could move forward, even though passage is considered a long shot, at best.
Nonbanks are stepping up to the plate on agency MBS. Meanwhile, a handful of large "term" loans are being put together, allowing investors to finance MSRs.
The Mortgage Bankers Association recently warned the CFPB that a move by the Federal Housing Finance Agency to lower loan limits for the government-sponsored enterprises could negatively affect qualified mortgage status and borrower access to credit. “Given that we are in the early, fragile stages of a housing recovery, we urge the bureau to consider additional refinements to the QM requirements to mitigate the combined impact of the rule and the FHFA’s action on loan limits,” the MBA said. The trade group noted that the QM rule...
New issuance of agency single-family MBS fell in August to its lowest monthly total of the year, according to a new market analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae generated a total of $130.88 billion of new single-family MBS last month, down 9.3 percent from July. It was the lowest monthly production volume since December 2012. New issuance by the government-sponsored enterprises fluctuated sharply at that time as lenders jockeyed around rising guaranty fees and the implementation of more favorable reps and warranties policies. All three agencies saw...[Includes one data chart]
If the Federal Housing Finance Agency lowers loan limits for Fannie Mae and Freddie Mac next year, Redwood Trust says it is ready, willing and able to pick up the slack. “If that happens, Redwood will step up and fund those loans, no problem,” said Mike McMahon, managing director of the real estate investment trust, the most active jumbo MBS issuer in the non-agency market. The executive told Inside MBS & ABS that he’s certain that Redwood would have plenty of company as well. “There will be little or no disruption in the market,” he said. According to McMahon, in 2012 lenders produced...
The GSEs continued to see solid increases in purchase-mortgage business, which increased by almost 7 percent from July to August. It was the fifth straight monthly gain for the two.
Last month, senior staff from the Senate Banking Committee met with various industry “stakeholders” – including trade associations, consumer groups and academics – to hear their thoughts on housing finance reform and the fate of the GSEs.
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