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.
Christopher Whalen, senior managing director at KBRA, noted that most of the megabanks “are showing lower mortgage banking lines, which includes MBS desk P&L [profit and loss]. Gain-on-sale is also down about 50 percent year-over-year, so that’s another factor in the balance.”
This week, Fannie Mae announced it will start to securitize re-performing loans held on its balance sheet during the second half of the year. Loans that have been modified and are now performing and loans that have become current without a modification program will be included. Securitizing the once delinquent loans will help manage Fannie’s risk while dwindling down its portfolio, according to Fannie’s Bob Ives, vice president of retained portfolio asset management. “Over the long run, these securitizations can benefit investors, Fannie Mae and taxpayers.” Just weeks earlier the Federal Housing Finance Agency revealed a principal reduction program for Fannie and Freddie Mac loans.
The outstanding supply of Fannie Mae and Freddie Mac servicing has remained essentially flat over the past year or so as the churning of refinance loans doesn’t create much growth. But some sectors of the GSE servicing market are clearly gaining share. A new ranking and analysis by Inside The GSEs shows the supply of Fannie/Freddie servicing attached to single-family mortgage-backed securities declined 0.3 percent in the first quarter of 2016. The Freddie market was actually up 0.3 percent from the end of 2015, while Fannie servicing declined 0.7 percent. The figures do not include servicing of unsecuritized mortgages held in portfolio by the two GSEs. The top tier of servicers continued to pull...
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