In 1Q, the residential MBS sector was down 7.1 percent from 4Q15 with $277.05 billion in new issuance. It was the lowest output since the second quarter of 2014...
Since the Federal Housing Finance Agency’s March filing to transfer lawsuits initiated by Fannie Mae and Freddie Mac shareholders to a new court, a number of plaintiffs have filed motions opposing the transfer, arguing that the cases are substantially different from one another. FHFA said it was looking to prevent future “copycat” cases and ensure a more consistent ruling across the board by having all of the cases heard in the U.S. District Court for the District of Columbia instead of scattered in different jurisdictions throughout the country. On April 6, the attorneys for plaintiffs David Jacobs and Gregory Hindes said...
Ginnie Mae issued $93.41 billion of single-family mortgage-backed securities during the first three months of 2016, an 8.6 percent drop from the previous quarter, according to a new Inside FHA/VA Lending analysis of loan-level MBS data, excluding FHA reverse-mortgage activity. Early 2016 was the slowest market in a year for Ginnie MBS production, though it still was stronger than most of the agency’s pre-2015 business. And issuance in the first quarter of 2016 was 17.0 percent ahead of the volume produced during the same period last year. The soft spot in the first quarter was FHA lending, especially purchase-mortgage activity. Issuers delivered $54.44 billion of FHA loans into Ginnie MBS during the period, a 12.1 percent drop from the fourth quarter, including a 15.0 percent decline in FHA purchase mortgages. Securitization of VA loans fell by a ... [4 charts].
Housing policy experts at a Washington, DC, forum this week were generally supportive of renewed efforts to address the quagmire in which Fannie Mae and Freddie Mac have been stuck for over eight years, but there was less evidence of movement to expand the credit box. A group of high-profile policy experts led by Urban Institute Senior Fellow Jim Parrott recently tried to re-ignite the mortgage reform effort by calling for the merger of the two government-sponsored enterprises and providing an explicit government guarantee for the new entity’s mortgage-backed securities with private capital taking the first loss. Barry Zigas, director of housing policy at the Consumer Federation of American and one of the co-authors of the paper, said...
There was a modest 1.8 percent increase in refinance business, and refi loans accounted for over half (52.1 percent) of GSE business in the first quarter – the first time refi activity exceeded purchase lending since early last year.
Fannie Mae and Freddie Mac saw a slight decline in their single-family mortgage business during the first three months of 2016 – in fact, it was the slowest quarter in nearly two years – according to a new analysis and ranking by Inside Mortgage Finance. The two government-sponsored enterprises issued $172.97 billion of single-family mortgage-backed securities during the first quarter of this year, a 3.4 percent decline from the fourth quarter of 2015. It was the slowest three-month volume since the second quarter of 2014, and the fourth-lowest output since the GSEs were put in conservatorship back in 2008. The slowdown stemmed...[Includes three data tables]
United Guaranty last week filed papers for an initial public offering with the Securities and Exchange Commission as a first step to split from its parent company, American International Group, Inc. UG, the mortgage insurance subsidiary of AIG, has filed a proposed aggregate offering of $100 million of common stock but pricing has not been determined. The IPO will not launch until later this year, but if the weak IPO market picks up soon, “it would change things a great deal,” according to an analysis by investment research firm Seeking Alpha. In late January, AIG announced...
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