A blowout 3Q16 for residential originations and MBS issuance?

Fund managers have a significant preference for Freddie paper over Fannie instruments…

In the first six months of 2016, Fannie and Freddie securitized $64.52 billion of single-family mortgages with DTI ratios exceeding 43 percent.

Angel Oak said more warehouse banks are growing comfortable with non-QM collateral…

“We hope that you will help us to push back on current efforts to gift the proprietary infrastructure of Fannie Mae and Freddie Mac to the big banks,” the clergymen write.

The directives make clear that the minimum g-fee applies only to swap transactions…

Documents obtained by Inside MBS & ABS reveal that Fannie Mae and Freddie Mac were required to charge the same “minimum” guaranty fee for single-family guaranty commitments issued on or after Aug. 1. Both government-sponsored enterprises received identical marching orders for minimum g-fees: 44 basis points for 30-year mortgages and 30 bps for 15-year loans. And, according to copies of emails from the Federal Housing Finance Agency following up on the agency’s initial July 29 directive, an unspecified number of Freddie sellers were paying less than the minimum. The names of these sellers were redacted...[Includes one data table]

The deal is part of New Residential’s efforts to generate income from excess MSRs…

Money market funds held some $114.16 billion of Fannie Mae and Freddie Mac debt as of the end of August, a 3.0 percent increase from the end of last year, according to a new Inside MBS & ABS analysis of data compiled by the Office of Financial Research. But new regulations have spurred a migration from prime money market funds into government funds, said the OFR, a unit of the U.S. Department of Treasury. The shift from prime to government funds reflects new Securities and Exchange Commission rules aimed at making prime funds less vulnerable to investor runs, OFR analysts explained in a recent research brief. Although the new SEC requirements don’t become mandatory until Oct. 14, 2016, fund managers began...[Includes one data table]

As recently as three years ago, few companies were willing to finance originations of nonprime mortgages, either via warehouse funding or acquiring the paper as whole loans. Daniel Perl, CEO of Citadel Servicing, said there are currently a number of Wall Street companies and other firms that will provide a certain amount of liquidity for one to three years, while demand for whole loans and MBS is also increasing. “There’s a lot to be said for this market today that you couldn’t say three years ago,” he said earlier this month during a webinar hosted by Inside Mortgage Finance. Tom Hutchens, a senior vice president of sales and marketing at Angel Oak Mortgage Solutions, said...