Fannie Mae and Freddie Mac saw significant increases in single-family mortgage business during the third quarter of 2014, and they relied less on their top sellers, according to a new Inside Mortgage Trends analysis. Together, the two government-sponsored enterprises issued $183.2 billion of single-family mortgage-backed securities during the third quarter. That was up 29.1 percent from the previous quarter. Most of the gain came from a 31.7 percent jump in ... [Includes two data charts]

FHFA Principal Reduction Pilot Program. A bill filed by Sen. Robert Menendez, D-NJ, before Congress left town last month would create a shared-appreciation mortgage program in which banks would reduce the mortgage principal for eligible underwater homeowners. Under the Preserving American Homeownership Act, S. 2854, the pilot programs – to be established by the Federal Housing Finance Agency and the FHA – would entitle banks to a portion of the increased value of the home when the market improves.

Although linked to higher likelihood of defaults for first mortgages, piggyback second liens do not necessarily mean bad results for the associated primary loan. However, subsequent second liens have had mixed results over certain time periods. “The empirical results for subsequent second liens are much more nuanced and, in many ways, more interesting than the piggyback results,” concludes Andrew Leventis, principal economist at the Federal Housing Finance Agency ...

Fannie Mae and Freddie Mac securitized a total of $183.17 billion of single-family mortgages during the third quarter of 2014, continuing the improving momentum from the previous period, according to a new Inside The GSEs analysis. Combined mortgage-backed securities issuance for the two GSEs rose 29.1 percent from the second quarter, marking the second straight increase from the record-low levels set during the first three months of 2014. On a year-to-date basis, GSE volume was down 53.6 percent from the first nine months of 2013.

The GSEs securitized $100.30 billion of purchase mortgages during the third quarter, a 28.3 percent sequential gain.

Banks, thrifts and credit unions reported $540.4 billion of HELOCs on their books at the end of June, down 0.9 percent from March.

Fannie Mae and Freddie Mac securitized a total of $183.17 billion of single-family mortgages during the third quarter of 2014, continuing the improving momentum during the previous period, according to a new Inside Mortgage Finance analysis and ranking. Combined mortgage-backed securities issuance for the two government-sponsored enterprises rose 29.1 percent from the second quarter, marking the second straight increase from the record-low levels set during the first three months of 2014. On a year-to-date basis, GSE volume was down 53.6 percent from the first nine months of 2013. Although purchase mortgages continued to provide most of the ammunition for Fannie/Freddie business, the GSEs securitized...[Includes three data charts]

Several large nonbank lenders have banded together to form what they call a “working group” to address key regulatory issues that they say are stifling their growth and future prospects for success in a rapidly changing mortgage industry. The group’s members – including Ocwen Financial – will initially strive to educate and inform regulators about nonbanks, but will not lobby Congress. Members of the group stress that the nonbank collective is not a trade organization and does not seek that status. For now, Ocwen is...

In a surprise ruling this week, a federal judge in Washington, DC, dismissed claims by Fannie Mae and Freddie Mac shareholders challenging the Treasury Department’s 2012 “net-worth sweep” of nearly all the profits generated by the government-sponsored enterprises. Judge Royce Lamberth of the U.S. District Court for the District of Columbia ruled that Treasury and the Federal Housing Finance Agency are empowered by the Housing and Economic Recovery Act of 2008 to execute the “third amendment” of the preferred stock purchase agreement. The dismissal includes...

The Federal Housing Finance Agency is not on board with its Inspector General’s recommendation that the agency direct Fannie Mae and Freddie Mac to assess the cost and benefit of requiring lenders to get independent, third-party confirmation of their compliance with government-sponsored enterprise origination and servicing guidance. The IG audit noted that the Securities and Exchange Commission and the Department of Housing and Urban Development, as well as private MBS investors in the secondary mortgage market, already require annual, independent assurance of counterparty compliance. “The annual assertions and audits have helped...