Proponents of the non-agency market are concerned that the final rule recently issued by federal regulators setting risk-retention requirements for certain securitized mortgages includes an exemption for Fannie Mae and Freddie Mac. Beginning in late 2015, risk-retention requirements for residential mortgages will apply to newly issued non-agency mortgage-backed securities collateralized by loans that don’t meet standards for qualified mortgages. Issuers or lenders contributing to ...
Jumbo mortgage-backed securities issued in recent years continue to perform exceptionally well, according to Moody’s Investors Service. The rating service pointed to 10 jumbo MBS issued in 2012 and 2013 by Redwood Trust as having built up credit enhancement on the senior bonds due to a low level of delinquencies. “An analysis of 10 transactions suggests that the low delinquency rate will continue as a result of the improving housing market, even as prepayment rates have remained low ...
Proponents of the non-agency market have seen little help in recent actions by the Federal Housing Finance Agency. The FHFA continued its practice of maintaining high-cost loan limits for the government-sponsored enterprises and the FHFA’s strategic plan puts an emphasis on “preserving and conserving” the GSEs’ assets. Last week, the FHFA announced that conforming loan limits for 2015 will be largely unchanged compared with loan limits for 2014. Loan limits will increase ...
Some 1.0 million outstanding borrowers in the Home Affordable Modification Program are eligible for new incentives announced this week by the Treasury Department and the Department of Housing and Urban Development. Among other changes, HAMP borrowers will be eligible to earn $5,000 in the sixth year of their modification. The incentive payment is in addition to the $5,000 that has been available to HAMP borrowers that remained current ... [Includes three briefs]
Final PMIERS Rule Expected in 1Q15. The Federal Housing Finance Agency has revised its timeline for publishing a final version of the Private Mortgage Insurance Eligibility Requirements, which Fannie Mae and Freddie Mac proposed in July at the direction of the FHFA. The PMIERS will establish capital and other requirements for private mortgage insurers. In a statement, industry trade group U.S. Mortgage Insurers said it has received word from the agency that the final PMIERS would not be published until at least late in the first quarter of 2015. The FHFA initially indicated that a final rule would be issued by yearend 2014. The USMI reiterated its support for an updated PMIERS. Mortgage Executives Concerned About G-Fee Increase. A survey of mortgage executives at this year’s Mortgage Bankers Association annual conference found 53 percent saying that ...
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