Although Fannie Mae and Freddie Mac are at near records on issuing bonds backed by multifamily mortgages, the Federal Housing Finance Agency is now soliciting comments from the public on how to pare the role of the government-sponsored enterprises in that business. The agency recently published notice that it wants input from the industry in evaluating “alternatives for further contracting the multifamily business” and is seeking views “on the potential market impact of various strategies.” According to figures provided to Inside MBS & ABS, Fannie is...
Mortgage servicing transfers are likely to continue, particularly to nonbanks like Ocwen and Nationstar, with modest effect on most non-agency deals, according to a new study from Barclays Securitized Products Research. Researchers said the valuation effect of these servicing transfers is generally modest for most senior securities, with the exception of some that are likely to benefit from certain factors. Investors should also be aware of potential forbearance-related write-downs in these transferred deals, which may adversely affect subordinate bonds in the structure, they cautioned. The study attributes...
Fannie Mae will lower its maximum LTV. Mortgage insurance firms are not happy. Meanwhile, NAMB blames shrinking application volumes on summer vacations.
When the government took control of Fannie Mae and Freddie Mac almost five years ago, the thought of securitizing multifamily loans had already been planted, but both preferred the idea of holding the paper in portfolio for obvious reasons: high returns and ultra-low delinquencies. Today, both GSEs are securitizing a record amount of MF mortgage-backed securities – but all of that is about to change with the Federal Housing Finance Agency forcing them to shrink their balance sheet holdings including multifamily. Moreover, FHFA is now soliciting comments from the public on how to whittle down the GSEs’ role in the MF business. The agency recently published notice that it wants input in evaluating “alternatives for further contracting the multifamily business” and is seeking views “on the potential market impact of various strategies.”
The Federal Housing Finance Agency has hired Washington-based Spencer Stuart to help find a chief executive to man the helm of the “common securitization platform” project. One former Fannie Mae official familiar with the effort told Inside The GSEs that the project has taken on a more “serious” urgency at the agency. “I’m not sure of the timeline, but it’s moving along.” One mortgage official who was approached about the job – but who made it clear he is not interested – said that the CEO FHFA hires “will need to be creative, revolutionary and good at many things.”
The Federal Housing Finance Agency may pursue a fraud lawsuit against Ally Financial despite the bankruptcy status of Ally’s Residential Capital mortgage unit, a Manhattan federal judge ruled this week. U.S. District Court Judge Denise Cote denied Ally’s request to stay the FHFA’s litigation, a typical motion by bankrupt debtors to defer litigation as they seek to reorganize. In 2011, the FHFA filed 18 lawsuits alleging that Ally and other large financial institutions misrepresented the quality of non-agency mortgage-backed securities sold to Fannie Mae and Freddie Mac before the 2008 financial crisis.
Redwood Trust is about to have company from other real estate investment trusts looking to issue non-agency jumbo mortgage-backed securities. Two Harbors Investment will issue its first jumbo MBS later this month, and PennyMac Mortgage Investment Trust plans to issue a security by the end of September. Redwood helped revive non-agency jumbo MBS issuance beginning in 2010 and has been active in the sector ever since. Following the financial crisis, no other REITs joined Redwood even though ...
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