A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]
Some banks may be manipulating prices in Fannie Mae and Freddie Mac unsecured debt, according to several investigations launched late last week.The Department of Justice has reportedly opened a criminal investigation while the law firm of Hagens Berman is investigating the potential fraud.They suspect that traders from several banks have engaged in a coordinated attempt to manipulate pricing. Hagens Berman attorneys encourage investors and whistleblowers to report any information about potential antitrust violations and other fraud in the bond trading market to a tip line they recently established. This type of fraud has a large impact on market participants, according to Steve Berman, managing partner of Hagens Berman.
The agency single-family MBS market did what it was expected to do in May, generating a modest gain in production spurred on by vigor in the purchase-mortgage sector. [Includes two data charts.]
A key Treasury Department official last month said the Federal Housing Finance Agency will remain committed to the single-security initiative no matter who the Trump administration names to take over the regulator of the two government-sponsored enterprises.
Ginnie Mae has restricted three issuers from putting VA mortgages in standard multi-issuer MBS pools as it continues to police the ranks for alleged churning activities.
Industry participants are preparing for a transition away from the London Inter-bank Offered Rate in MBS and ABS but more needs to be done, according to an analysis by Fitch Ratings.
Some of the nation’s largest MBS-investing real estate investment trusts are seeing their share values wither a bit as the summer approaches, but for the most part their fortunes look fairly intact.
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