Fannie Mae and Freddie Mac generated $141.8 billion in single-family mortgage-backed securities during the second quarter of 2014, rebounding from the dismal first three months of the year, according to a new Inside The GSEs analysis. That was up 9.8 percent from the 14-year record low Fannie/Freddie MBS production of just $129.2 billion during the first quarter. However, the April-June cycle generated the second lowest quarterly volume since the end of 2008, and refinance volume continues to reach new lows – falling another 8.5 percent from the previous quarter.
Fannie Mae’s and Freddie Mac’ home retention activity declined for the most part during the first quarter of 2014, according to a new analysis of Federal Housing Finance Agency data by Inside The GSEs.Total loss mitigation activity – total home retention efforts and foreclosure alternatives combined – declined 8.9 percent from the first quarter of the year to 130,854 and was down 28.9 percent from year-ago levels.
One positive trend for the mortgage insurance sector is that the growth in business during the second quarter was squarely in purchase mortgages and traditional MI loan-to-value ranges.
The modest rebound in the housing market during the second quarter of 2014 produced a solid increase in the volume of home loans with private mortgage insurance securitized by Fannie Mae and Freddie Mac. A new Inside Mortgage Finance analysis and ranking reveals that the two government-sponsored enterprises securitized $37.36 billion of single-family mortgages with private MI coverage during the second quarter. That was up 24.7 percent from the first three months of the year, which had produced a dismal $29.95 billion of MI-insured loans in new GSE mortgage-backed securities. By comparison, total GSE business was...[Includes two data charts]
A number of consumer advocates strongly oppose a proposal from the Consumer Financial Protection Bureau that would allow lenders to cure mistakes regarding debt-to-income ratios on qualified mortgages. Lenders calling for the DTI ratio right-to-cure on QMs are making “Chicken Little” claims to support their arguments, according to the National Consumer Law Center and the National Association of Consumer Advocates. In April, the CFPB requested...
Recently implemented steps by the two government-sponsored enterprises to provide an alternative to repurchase when mortgage insurance is rescinded is a pleasant salve for a minor ailment, but it does nothing to address lenders’ chronic pain of sudden and unexpected buyback demands, according to a mortgage lender. Last week, new GSE repurchase requirements took effect, including the “MI stand-in” option, which Fannie defines as “the full mortgage insurance benefit that would have been payable under the original mortgage insurance policy if the mortgage loan liquidates.” In May, both Fannie and Freddie announced...
An industry that is used to reading about MERS’ court victories was stunned last week after a federal court judge in Pennsylvania found Merscorp Inc. and its electronic mortgage registry system in violation of state recording laws for real estate properties. While the ruling by U.S. District Court Judge J. Curtis Joyner may be appealed, MERS could be held liable for its role as an “agent” for member-lenders involved in property transfers and for alleged unjust enrichment, according to legal experts. The case was brought...
Marc Savitt, president of the National Association of Independent Housing Professionals, said he is seeing more lenders entering the wholesale channel. Most are nonbanks.
All of the loans that were not reviewed were originated by First Republic Bank. The rating agencies indicated they are comfortable with the lender’s underwriting process.
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