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Swoon in Agency MBS Issuance Slows Asset Securitization Volume in 3Q13

October 4, 2013
A steady decline in single-family agency MBS issuance led to a 13.8 percent decline in MBS and ABS production during the third quarter of 2013, according to a new Inside MBS & ABS analysis. A total of $388.53 billion of single-family MBS were issued during the third quarter, a 15.7 percent drop from the previous three-month period. It marked the lowest quarterly output for single-family MBS since the second quarter of last year, although year-to-date production was still up 9.0 percent from the first nine months of 2012. Every component in the residential MBS market was...[Includes three data pages]
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Residential MBS Issuance Slows in 3Q, Weakest Volume In Five Quarters

October 4, 2013
John Bancroft
Every component in the residential MBS market was down from the second quarter, and trending lower on a monthly basis, according to Inside MBS & ABS.
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FHLB San Francisco Rejoins MPF Program, But Loans Will Wind Up at Fannie Too

October 4, 2013
Charles Wisniowski
Starting in 2014, the FHLB will purchase conventional, conforming fixed-rate mortgages and FHA/VA products from its members, but some of the product will be funneled to Fannie Mae via the MPF Xtra program.
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Short Takes: There Goes the Stock Market, Maybe Jumbos Too / Oh, and the Homeownership Rate? Kiss That Goodbye Too / PennyMac Faces Stiff Competition in Correspondent / CoreLogic Sees Home Prices Rise But Offers Caution / SunTrust Cuts Buyback Deal

October 3, 2013
Paul Muolo and Charles Wisniowski
The U.S. homeownership rate fell to 63.9 percent in 2012, according to figures compiled by the Census Bureau through its “American Community Survey.” In case you’re keeping tabs, it’s the fifth year in a row that the rate has gone south.
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U.S. Debt Ceiling Cap Won’t Impede GSE MBS Issuance, But Prices Could Get Hammered

October 3, 2013
Paul Muolo
The general consensus is that despite their conservatorship status, the GSEs are still considered private companies, even though Treasury controls their senior preferred shares.
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Large Servicing Packages Continue to Change Hands; Flagstar Sells Again and PHH May Come to Market

October 3, 2013
Large banks and some smaller shops continue to test the servicing sales market this fall, with bulk offerings from Citigroup and Flagstar garnering attention from investors. Industry advisors who track the market say Flagstar recently wrapped up bidding on a $12 billion package of mortgage servicing rights on newly originated loans. “These were pristine quality receivables, stuff that was funded over the past few months,” said one observer who saw the bid package. This summer, Flagstar – in an effort to capture the value of MSRs held on its balance sheet – sold...
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FHA Seen as Most Vulnerable to Shutdown, GSEs Provide Guidance, Fed Regulators Still on the Job

October 3, 2013
The FHA and the Department of Housing and Urban Development have already slipped into somewhat of a “power save” mode since substantial parts of the federal government were shut down early this week. The FHA will continue to endorse new loans under what it calls a “multi-year appropriation authority.” FHA Commissioner Carol Galante said the agency will continue to guarantee single-family loans during the shutdown, refuting earlier news accounts that were based on erroneous materials included in HUD’s shutdown contingency plan. “I do want to clear up any confusion about what this means for FHA single-family home borrowers. FHA will be able to endorse single-family loans during the shutdown,” Galante said. “A very limited number of staff will be available to endorse new loans.” Galante warned...
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GSEs Grant Limited Reprieve From Repurchases Due to QM

October 3, 2013
Thomas Ressler
However, if Fannie Mae determines through established delivery or quality-control review processes that any loan has ineligible term or amortization provisions, it will be subject to repurchase.
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MBA Says Government Shutdown Will Harm Rate Locks, FHA, More

October 3, 2013
Charles Wisniowski
The Mortgage Bankers Association and other industry trade groups fear that the shutdown will have a growing impact on the housing market, including FHA endorsements.
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Non-Agency Jumbo MBS Issuance Slowed in Third Quarter

October 3, 2013
Brandon Ivey
Redwood Trust and Credit Suisse, the jumbo MBS sector’s two biggest players, slowed their securities issuance during the third quarter.
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