Fannie Mae and Freddie Mac securitized a total of $43.18 billion of single-family mortgages that carried private mortgage insurance during the fourth quarter of 2013, according to a new market analysis and ranking by Inside Mortgage Finance. That was down 25.8 percent from the $58.18 billion of private MI mortgages securitized by the two government-sponsored enterprises in the third quarter of last year. The silver lining was that overall GSE production declined even more, with new GSE mortgage-backed security issuance dropping 36.1 percent from the third to the fourth quarter. Overall, some 23.8 percent of GSE-securitized single-family mortgages had...[Includes two data charts]
When Fannie Mae and Freddie Mac unveil their fourth-quarter 2013 results in February, the two government-sponsored enterprises are expected to again report strong earnings driven by: higher guaranty fee income, one-time gains tied to legal settlements, and a boost from lower loan-loss reserves. But most of the money will be swept straight into the U.S. Treasury. One of the major factors in the GSEs’ huge 2013 earnings so far – the release of deferred tax assets – will likely be...
Michael Stegman, counselor to the Treasury Department on housing-finance policy, said this week that legislation to reform the government-sponsored enterprises is a top priority for the Obama administration. However, industry analysts suggest that Congress is unlikely to pass such legislation anytime soon, leaving the Federal Housing Finance Agency as the driver of GSE reform. “Indefinitely continuing a taxpayer-backed duopoly is neither sustainable nor sensible public policy,” Stegman said this week at the ABS Vegas conference sponsored by the Structured Finance Industry Group and Information Management Network. He pushed...
The hunger for GSE speculation is also causing some investors to buy Fannie/Freddie common which has been rising of late, but not by much. However, one GSE watcher believes that buying the common, "is a fool’s game."
In other words, the White House still wants to dismantle Fannie Mae and Freddie Mac and doesn't seem to care about all the money the two are returning to the government.
The change resulted in the cessation of dividend payments by the GSEs to Treasury, replacing it with a “sweep” of all almost net profits earned by Fannie and Freddie.
Refinance mortgages accounted for 80.1 percent of agency production back in 2012, but that declined to 65.6 percent last year and just 45.3 percent of fourth-quarter business.
Fannie Mae this week priced its second capital markets risk-sharing transaction, offering a total of $750 million in tranches for sale based off a reference pool of $29.31 billion in agency mortgages. The deal uses the same synthetic structure seen on previous risk-sharing transactions from the government-sponsored enterprises. Edward DeMarco, the former acting director of the Federal Housing Finance Agency, had been pushing the GSEs to issue risk-sharing deals using a senior-subordinate structure that would not be eligible for the to-be announced market. With Mel Watt now the director of the FHFA, non-TBA risk-sharing transactions from the GSEs could be even less likely. Laurel Davis, vice president for credit risk transfer at Fannie, said...
The Department of Housing and Urban Development sold 62,062 distressed loans in 2013 through its expanded Distressed Asset Stabilization Program (DASP) to increase recoveries to FHA’s Mutual Mortgage Insurance Fund. HUD made 10 offerings of nonperforming FHA-insured loans in a series of quarterly competitive auctions last year, participated in by pre-qualified bidders, including nonprofit organizations. The defaulted single-family mortgages were provided by FHA-approved loan servicers and sold through large national pools and “neighborhood stabilization outcome” pools. The NSO pools consist of loans in ...
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