Democrats and Republicans in Congress want to know what it will take to expand real estate investment trust participation in GSE credit risk transfers. They wrote the Securities and Exchange Commission last week asking it to help alleviate the regulatory challenges REITs face when it comes to participating in credit risk transfers. “Specifically, we are requesting your expertise in unlocking a meaningful amount of capital in the form of mortgage real estate investment trusts to participate in these transactions,” said the letter from the 13 congressman.They cited the FHFA’s goal to grow the credit risk-sharing program with an expanded investor base and said that mortgage REITs would be a likely candidate if the obstacles were removed.

Fannie Mae and Freddie Mac have been targeting a portion of their nonperforming loans to nonprofit organizations, but reaching those groups can be a challenge. So far, each has sold one pool to two different nonprofit groups in New Jersey. Freddie Mac announced its very first NPL sale to a nonprofit buyer back in late December. It sold $18.4 million in loans to the Community Loan Fund of New Jersey, a non-profit, private and minority and women-owned business. There were 103 loans in the Florida-based pool with an average balance of $178,300 and they were about 33 months delinquent on average. The transaction is expected to settle in February.

FHFA FHLB Classification Guidance. The Federal Housing Finance Agency put out guidance this week on the classification of investment securities at the Federal Home Loan Banks. It is adopting the 2013 Uniform Agreement for FHLBank supervisory purposes. Where FHFA’s rule and guidance and the 2013 Uniform Agreement may conflict, the FHFA said its rules and guidance will apply. The agreement included FHLBanks using sound and conservative assumptions as they pertain to upgrades and it provides classification approach examples that provide boundaries for upgrading classified securities. Freddie Prices $1 Billion STACR Offering. As the first out of eight Structured Agency Credit Risk offerings planned through October 2016, Freddie Mac...

An estimated $254.15 billion of agency mortgage servicing rights were transferred in bulk sales transactions last year, according to a new Inside Mortgage Trends analysis of loan-level mortgage-backed securities disclosures. The peak of the market came during the second quarter of 2015, when a whopping $102.27 billion of MSR were transferred to new servicers. Some $61.80 billion of that was in the Ginnie Mae program, with Bank of America ... [Includes one data chart]

Correspondent originators and mortgage brokers continued to churn out relatively more purchase mortgages than retail lenders during the fourth quarter of 2015, according to a new Inside Mortgage Trends analysis of agency loan-level data. Some 34.6 percent of single-family loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the final three months of last year were originated by correspondent lenders. And 69.1 percent of those loans ... [Includes one data chart]

Also, the agency servicing market has continued to become less top-heavy.

Ocwen, in particular, will need to tell investors exactly how they plan to become a top-10 originator, something that seems like a long shot right now...

Rumors of a large layoff at Redwood first broke Monday...

Jumbo MBS issuers are not required to identify lenders that contribute less than 5.0 percent of the loans to any particular deal.

Where Realtors were once the first source of information for homebuyers, increasingly independent mortgage lenders are attempting to provide leads on homes for sale and more...