A steady decline in GSE refinances throughout 2013 coupled with faltering purchase mortgage activity during the final third of the year helped contribute to an overall dip in the volume of single-family mortgages securitized by Fannie Mae and Freddie Mac both on a month-to-month and year-end basis, according to a new Inside The GSEs analysis. Fannie and Freddie issued $55.8 billion in single-family mortgage-backed securities in December, a 4.9 percent decline from November.

Fannie Mae’s and Freddie Mac’s home-retention activity declined for the most part during the third quarter of 2013, according to a new analysis of Federal Housing Finance Agency data by Inside The GSEs. Total loss mitigation activity – total home-retention efforts and foreclosure activities combined – declined 8.3 percent during the third quarter to 152,101 and was down 21.3 percent from a year-ago.

Fannie Mae and Freddie Mac combined did less business in single-family mortgage-backed securities in 2013 than the previous year while a growing share of business came from small and mid-sized lenders, according to an Inside The GSEs analysis. For the year, the two GSEs produced $1.161 trillion in single-family MBS, down 8.4 percent from their overall production in 2012.

A key factor in the upswing in private MI share of Fannie/Freddie business was the relatively steadier volume in purchase-mortgage securitization compared to refinance loans.

Speculators in Fannie Mae/Freddie Mac junior preferred shares will benefit if they can prove loan loss reserves at the two were over-stated.

Fannie Mae and Freddie Mac securitized a total of $43.18 billion of single-family mortgages that carried private mortgage insurance during the fourth quarter of 2013, according to a new market analysis and ranking by Inside Mortgage Finance. That was down 25.8 percent from the $58.18 billion of private MI mortgages securitized by the two government-sponsored enterprises in the third quarter of last year. The silver lining was that overall GSE production declined even more, with new GSE mortgage-backed security issuance dropping 36.1 percent from the third to the fourth quarter. Overall, some 23.8 percent of GSE-securitized single-family mortgages had...[Includes two data charts]

When Fannie Mae and Freddie Mac unveil their fourth-quarter 2013 results in February, the two government-sponsored enterprises are expected to again report strong earnings driven by: higher guaranty fee income, one-time gains tied to legal settlements, and a boost from lower loan-loss reserves. But most of the money will be swept straight into the U.S. Treasury. One of the major factors in the GSEs’ huge 2013 earnings so far – the release of deferred tax assets – will likely be...

Three House Democrats plan to introduce a new housing-finance reform bill that would leverage the Ginnie Mae mortgage-securitization infrastructure and private mortgage insurers. The reform proposal by Reps. John Delaney (MD), John Carney (AL) and Jim Himes (CT) would establish a system of government reinsurance for eligible mortgage-backed securities. The idea is to leverage the government’s capacity and market’s ability to price risk, they said. Their plan calls...

Comments made Wednesday by the Treasury Department’s point man on GSE reform, Michael Stegman, did not go unnoticed by employees of Fannie Mae and Freddie Mac.

One servicing advisor told IMFnews that the regulator “now has the last word on all MSR transfer approvals. It began in December and has slowed the process a bit.”