The new approach is expected to be a more cost-effective route than going through the repeated repurchase requests that have plagued lenders over the years.
A number of financial indicators and documents suggest that Fannie Mae was not in the dire straits reported to justify its takeover, according to a new white paper. Adam Spittler, GSE activist investor, along with Mike Ciklin, owner of a small law firm specializing in MBS, and G. Stevenson Smith, an accounting professor specializing in fraud, published a white paper saying they reviewed financial statements to better understand the viability of the GSE from 2007 to 2014.
Fannie Mae recently said that in 2016 it would announce details about its plans to let lenders pay a risk fee as an alternative to repurchase for some of the defective loans it receives. While both GSEs have already put some remedies for defects in place, this alternative lets the lender pay a fee for some loans labeled defective, instead of being asked to repurchase the loan. …
The supply of single-family MBS outstanding grew again in the third quarter of 2015, according to a new Inside MBS & ABS analysis. At the end of September, $6.381 trillion of single-family MBS were outstanding, a 0.7 percent increase from the second quarter. The market has moved in fits and starts since the end of 2009, but the September mark was the highest since the third quarter of 2013. The supply of non-agency MBS in the market has moved...[Includes two data tables]
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