Fannie Mae and Freddie Mac – in conservatorship for almost eight years now – posted combined net income of $3.94 billion for the second quarter, with an assist from higher guaranty fee income and a noticeable decline in hedging charges. Fannie’s profit was $2.9 billion for the second quarter, more than double the $1.1 billion reported last quarter. The GSE attributed the increase in net income to lower fair value losses in the quarter, coupled with high credit-related income due to home price increases and interest rate decreases. Higher net revenues driven by increased mortgage prepayments also helped. Fannie booked $3.26 billion of guaranty fee income in 2Q16, compared to $3.22 billion in the first quarter.
The Federal Home Loan Bank System witnessed a quarterly drop in earnings, but posted an 11.6 percent jump in advances in the second quarter as lenders ramped up mortgage originations. The combined net income was $792 million in the second quarter of 2016. That number is down from the $825 million in the previous quarter. The report noted that the 12-month increase was mostly due to ...
The multifamily market continued to stay strong in the first half of 2016, despite a slowdown in origination volume. GSE multifamily business soared with record volumes in 2015 when lending reached $90 billion. Freddie Mac said steady economic growth and key drivers will keep the multifamily market moving forward through the remainder of 2016 and into next year. In its mid-year multifamily outlook, the mortgage giant noted that origination volume will have another record year in 2016, thanks to increasing property prices, new completions and maturities. Although fundamentals moderated some in the first half of the year, Freddie said they won’t decelerate enough to derail the multifamily industry because demand remains robust.
The agency single-family MBS market gained speed for the sixth consecutive month in July and appeared on track to top last year’s annual total by the time 2016 is over. According to a new Inside MBS & ABS analysis and ranking, Fannie Mae, Freddie Mac and Ginnie Mae produced a hefty $129.30 billion of new single-family MBS in July. That was up 7.7 percent from June and represented the biggest month in new issuance since August 2013. While the year-to-date totals were still slightly below the volume produced in the first seven months of 2015, this year’s market probably hasn’t...[Includes two data tables]
One of the largest players in the "new" nonprime mortgage industry is Citadel Loan Servicing, Irvine, CA, which now has a portfolio totaling $600 million.
The dramatic expansion of the credit box for loans sold to Fannie Mae and Freddie Mac in the first quarter of this year held steady in the second quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. In the first quarter, the share of purchase loans sold to the government-sponsored enterprises with credit scores ranging from 620 to 699 jumped by nearly 7 percentage points to 21.4 percent. The low-score share ... [Includes one data chart]
GSE guaranty fees more than doubled from 2011 to 2015, increasing from an average of 26 basis points in 2011 to 56 basis points in 2015, according to a new report published this week. That sharp increase has prompted trade and community groups to lobby for lower fees. However, Federal Housing Finance Agency Director Mel Watt said this week that the current charges “strike the right balance, between safety and soundness and liquidity in the housing finance market,” according to a reply letter he sent to the Center for Responsible Lenders, Mortgage Bankers Association and a host of others seeking a fee reduction. In the FHFA’s annual report to Congress on guaranty fees...
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