A recent shift in the purchase-mortgage market share toward the government-sponsored enterprises appears to be part of seasonal home buying patterns rather than direct competition for mortgages with low downpayments.

The Federal Housing Finance Agency released final housing goals for Fannie Mae and Freddie Mac for 2015 through 2017 on Wednesday. It increased both the single-family low-income purchase goals and multifamily low-income goals and established a new low-income housing subgoal for small multifamily properties.

All three mortgage production channels saw solid gains in originations from the first quarter to the second quarter of 2015, but correspondents had the best of it. Correspondent lenders generated an estimated $132 billion of new mortgages during the second quarter, according to a new Inside Mortgage Finance ranking and market analysis. That was up 26.9 percent from the first quarter, a few clicks faster than the overall 23.6 percent increase in production volume. The correspondent share edged...[Includes four data tables]

Fannie Mae and Freddie Mac have been gaining purchase-mortgage market share from the FHA in recent months, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The shifts appear to be part of seasonal home-buying patterns rather than direct competition for mortgages with low downpayments. “From our statistics, we see...

The manufactured housing industry wants the Federal Housing Finance Agency to push Fannie Mae and Freddie Mac to purchase more manufactured housing loans under its forthcoming “duty-to-serve” rule. The “duty-to-serve” rule was mandated by the 2008 Housing and Economic Recovery Act to steer the government-sponsored enterprises to support underserved markets. In particular, that included manufactured housing, rural housing and affordable housing preservation. A final rule has never been implemented...

Fannie Mae and Freddie Mac saw modest gains in issuance of single-family mortgage-backed securities during July, with little sign of any expanded underwriting by sellers The two GSEs generated $83.29 billion of single-family MBS last month, up 7.2 percent from June. Fannie managed only a 1.9 percent gain for the month, while Freddie volume surged 13.8 percent, which gave the company an unusually high 47.0 percent share of the GSE market. A big part of Freddie’s sharp increase in issuance came from the $8.00 billion of seasoned loans the company securitized in July. That was nearly double the volume of Freddie mortgages more than three months old that were securitized in June. Some $1.92 billion of those loans were modified....

Freddie Mac continues to unload seriously delinquent loans from its retained portfolio and unveiled plans late this week to auction off $1.2 billion of non-performing loans. The NPLs are currently serviced by Ocwen Loan Servicing, LLC. The planned sale marks Freddie’s sixth NPL auction of the year.The GSE is now marketing the nonperformers in five geographically diversified pools. Bids are due from qualified investors by Sept. 9. The sale is expected to settle in October. The government sponsored mortgage giant said the winning bidder “will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels.” Credit Suisse Securities, Wells Fargo Securities, LLC, and First Financial Network are the advisors on the deal.

The GSEs’ low-downpayment products designed to loosen credit availability have been slow to pick up steam. Freddie Mac introduced its 97 percent loan-to-value program in March 2015, on the heels of Fannie Mae kicking off its 97 LTV program in December 2014. The CEOs of both companies recently said that so far the volume of low-downpayment purchase loans in GSE business is relatively small. Freddie CEO Donald Layton said during last week’s earnings call, “Actually the numbers have not grown large enough to be reporting level in terms of size.” Fannie echoed that sentiment in its earnings call and said it introduced the 97 LTV product as part of its effort to create programs that make credit available on a broader basis.

Both Freddie Mac and Fannie Mae reported second-quarter earnings last week that were significantly higher than the first quarter, thanks primarily to rising interest rates. Freddie posted a net income of $4.17 billion, compared to $524 million in the first quarter. In addition to higher interest rates, the GSE attributed the increased income to a steeper yield curve and $3.1 billion in derivative gains. That gain represents a big comeback from the $2.4 billion in derivative losses in the first quarter. Fannie reported a net income of $4.64 billion, compared to $1.89 billion in the first quarter. Fannie said that number was largely driven by guaranty fee income in the second quarter.

The smaller apartment building market has become a part of Freddie’s risk-transfer program as the GSE guaranteed its first multifamily small-balance loan securitization last week. This new credit risk- transfer is composed of multifamily mortgage-backed securities by small-balance loans underwritten by Freddie and issued by a third-party trust. Freddie said the goal is to more effectively provide liquidity and service to markets that are less populated and to smaller apartment communities with between five and 50 units. Approximately 31 percent of U.S. renter households live in apartment properties this size, said the GSE. In these deals, Freddie is selling the first-loss position, which allows it to unload substantially all of the credit risk associated with the small-balance loans.