The Federal Home Loan Bank of Chicago will issue Ginnie Mae MBS backed by mortgages originated by member financial institutions, the two entities announced jointly this week. The new conduit product, called the MPF Government MBS, is an offshoot of the Chicago FHLBank’s Mortgage Partnership Finance program. The new product is intended to provide smaller mortgage lenders that lack direct access to the secondary mortgage market another option for their customers. Lenders will be...
As leaders of the Senate Banking, Housing and Urban Affairs Committee double down on their efforts to craft a bipartisan mortgage finance reform bill, experts told lawmakers during a hearing this week that any reform effort must preserve the “smooth functioning” of the to-be-announced market. Given that it is reliant on MBS guaranteed by the government, the TBA market is “extremely sensitive” to any changes to the role that the government will have in the future housing finance system, according to Richard Johns, executive director of the Structured Finance Industry Group. “SFIG believes...
As Fannie Mae prepares to emulate the risk-sharing bond recently issued by Freddie Mac, concerns are arising that the government-sponsored enterprises are giving away a bit too much yield. Former GSE officials who have looked at Freddie Mac’s recent $500 million Structured Agency Credit Risk bond say the debt offering is a good investment for investors who are taking little risk while garnering a nice yield. According to Freddie Mac’s July offering circular on its STACR deal, the notes are divided...
The House Financial Services Committee’s senior Democrat is drafting her own legislation to reform the government-sponsored enterprises as an alternative to a Republican bill that was rammed through committee earlier this summer but is stalled getting to the House floor. During a speech this week at a meeting of the National Association of Federal Credit Unions, Rep. Maxine Waters, D-CA, said she is seeking industry input for her bill that would be “quite different” from the Protecting American Taxpayers and Homeowners Act, sponsored by Committee Chairman Jeb Hensarling, R-TX. Waters said...
Stonegate Mortgage plans to raise up to $100 million in an initial public offering, according to documents filed with the Securities and Exchange Commission late last week. Meanwhile, stock prices for other mortgage-related companies that priced IPOs this year have declined. Stonegate is unique among mortgage company IPOs this year in that it’s not a real estate investment trust. Three of the four mortgage-related IPOs that have priced in 2013 have been for REITs and the other was a nonbank affiliated with a REIT. Stonegate was founded...
A widely-expected reduction in conforming loan limits for 2014 would help the jumbo market continue to broaden its footprint in mortgage originations, but the impact would be largely confined to a handful of states, according to a new Inside Mortgage Finance analysis. Jumbo production – originations of home loans that exceed varying conforming loan limits around the country – has been the brightest spot in a mortgage outlook made increasingly gloomy by rising interest rates. Non-agency jumbo originations rose 9.3 percent from the first to the second quarter, while total originations of Fannie Mae, Freddie Mac and FHA loans fell 3.8 percent. Jumbo mortgages accounted...[Includes four data charts]
The letter to members of Congress is notable for which trade groups didn't sign on, including the American Bankers Association and Mortgage Bankers Association.
Large parts of the Bay Area and Southern California qualify for the top high-cost limit, while other California markets such as San Diego ($546,250) and Sacramento ($474,950) have intermediate high-cost limits.
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