For the past several weeks, speculation was rife that if the yield on the 10-year bond remained under 2.0 percent at March 31 Freddie might book a large hedging loss...
Over at Freddie Mac, the GSE did $10.8 billion in issuance for the first quarter, mostly in its K-deal program, along with its small balance program, otherwise known as “SB deals.”
The Federal Housing Finance Agency, along with five other agencies, is seeking comment on a proposed rule focused on compensating employees via incentives. It would prohibit incentive-based payment arrangements that the agencies determine encourage inappropriate risks by providing excessive compensation or compensation that could lead to material financial loss. It requires those financial institutions to disclose any information concerning incentive-based pay to the appropriate financial regulator. If finalized, FHFA’s proposed rule would apply to Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also replace a proposed rule published by the joint agencies in April 2011.
The government-sponsored enterprises Fannie Mae and Freddie Mac are issuing multifamily MBS in 2016 at a rate that should approach and perhaps exceed $100 billion by the end of the year, according to the latest data and projections from the pair. That compares with a Federal Housing Finance Agency GSE scorecard cap of $31 billion in volume for each, up $1 billion over last year. However, there’s a good bit of wiggle room there because Fannie and Freddie essentially have “capped” and “uncapped” buckets. The more active of the two, Fannie, churned out $12.6 billion of new multifamily MBS in the first...
Mortgage trading desks the past few months have seen a noticeable increase in whole loan trading tied to seasoned Fannie Mae and Freddie Mac loans, according to traders interviewed this week by Inside MBS & ABS. Jason Eisendrath, director of loan sale strategies for Mortgage Delivery Specialists, said the sellers include not only money-center banks, but credit unions. “The credit unions, in particular, are holding a lot of [government-sponsored enterprise] paper,” he said. MDS is a part of Mortgage Industry Advisory Corp., New York. It’s...
Fannie Mae revealed plans this week to securitize re-performing loans held on its balance sheet to manage its risk and reduce its portfolio. Loans that have been modified and are now performing, coupled with loans that have become current without the assistance of a modification program, will be included in the group. “Over the long run, these securitizations can benefit...
Fannie, Freddie and Ginnie continue to dominate in multifamily mortgage securitization, capturing a combined 93.6 percent of the market in the first quarter.
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