In six weeks, Mel Watt will officially step down as director of the Federal Housing Finance Agency, a change that is ripe with ramifications for the secondary mortgage market, including speculation regarding lower loan limits for Fannie Mae and Freddie Mac.
Residential MBS holdings of commercial banks and savings institutions declined 0.7 percent during the third quarter, according to a new Inside MBS & ABS analysis of call-report data. [Includes two data charts.]
A lot of pieces have fallen into place for the scheduled June 2019 launch of the single security in the to-be-announced market, but one that hasn’t is a greenlight from the organization that sets TBA rules: the Securities Industry and Financial Markets Association.
Ginnie Mae last week issued guidance tightening requirements for entities seeking to become approved issuers, including a credit evaluation to determine their financial strength as well as a new notification requirement for subservicers.
Green securitizations have sprouted across the structured-finance industry, sometimes impacting a transaction’s credit quality, Moody’s Investors Service said in a recent report.
New requirements from Ginnie Mae addressing counterparty risk management by issuers could wind up making the agency’s approval more valuable, while requiring more transparency about their financing of mortgage servicing rights.
Single-family mortgage business slowed predictably at Fannie Mae and Freddie Mac last month, although there was surprising resilience in the refinance market. [Includes two data charts.]
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