The only way Fannie and Freddie are going to lose money is if there’s a hedging loss. And even then, it will be a non-cash charge…

The nonprime residential market is getting more attention as the big product categories hit the skids.

Watt noted the CRT coverage has come at a financial cost – and that Fannie and Freddie have been paying a premium.

What if the FHFA cuts the payments and hands Treasury an IOU? The possibilities are endless...

Although bulk transfers of mortgage-servicing rights were down somewhat in the first quarter, sales advisors are reporting strong activity for the period including more buyer interest and a firming up of prices, even on Ginnie Mae product. According to affiliated newsletter Inside Mortgage Trends, bulk agency MSR transfers that closed in the first quarter were down 35.9 percent from the fourth to $77.3 billion. The biggest downturn was in Fannie Mae product, due to a temporary freeze on bulk transfers as servicers adjusted to new investor reporting requirements. Freddie Mac transfers were actually up from the fourth quarter. More banks and consortiums are extending...

For the most part, several different factions of the mortgage industry have applauded the move by the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to build some type of capital buffer. Now comes the hard part: the details. Early this week, FHFA Acting Deputy Director of the Division of Conservatorship Bob Ryan said in a speech that the capital buffer plan would entail a delay of dividend payments to the U.S. Treasury Department – not an elimination of them. No other specifics were provided...

This fall will mark – unless there’s divine intervention or a Kumbaya moment in Washington – the ninth anniversary of the federal takeover of Fannie and Freddie.

In other words, Ocwen should have told shareholders that there was an MOU with the MMC.

Ryan went on to say it would be a limited buffer, but it should be large enough to help cover and avoid a draw...

Several trade groups, investors and analysts quickly issued their take on Watt’s comments, but there were some notables missing in action: Pershing Square and Fairholme.