The mortgage industry is beginning to get a whiff of what reform of the nation’s housing-finance system might look like next year: a federal gurantee on a new breed of conventional MBS but no backing – at all – of the entities that issue guaranteed securities.
FHFA's Mel Watt: "While it is apparent that a draw will be necessary for each enterprise if tax legislation results in a reduction to the corporate tax rate, FHFA considers the $3 billion capital reserve sufficient to cover other fluctuations in income in the normal course of each Enterprise’s business.”
Mel Watt continued: “We, therefore, contemplate that going forward enterprise dividends will be declared and paid beyond the $3 billion capital reserve in the absence of exigent circumstances.”
Ginnie Mae remained the fastest-growing component of the single-family servicing market dur-ing the third quarter of 2017, expanding at roughly twice the speed of the overall market, according to a new Inside Mortgage Finance ranking and analysis.
Issuance of prime non-agency mortgage-backed securities will increase next year, according to predictions from various industry analysts. Some see a gradual increase while analysts at Kroll Bond Rating Agency said volume could double when including so-called expanded-prime MBS. Kroll said prime non-agency MBS issuance could hit nearly $20.0 billion in 2018. “Assuming that spread tightening across structured finance remains at or near current levels, execution may continue to favor ...
Washington Analysis believes the FHFA/Treasury move is a “clear positive for shareholders in the GSEs, particularly holders of junior preferred shares..."
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