Fannie Mae and SoFi introduced a new loan option last week that lets homeowners take advantage of low rates and use the equity in their home to pay down college loans. Under the Student Loan Payoff ReFi, homeowners can refinance mortgages and cash out while paying down an existing loan balance. Fannie estimates that just 1.8 percent of the cash-out mortgages it finances today are being used to pay off student loans. With cash-out refinances growing, Deutsche Bank said it expects to see refinance activity and mortgage-backed security issuance tick up. The new product is driven by cutting guaranty fees that usually accompany Fannie cash-out mortgages. GSE officials said they received approval...
Second-ranked AGNC Investment Corp. – formerly American Capital Agency Corp. – reported a 2.2 percent increase in its MBS holdings under a new management structure…
Ginnie Mae’s decision to change the pooling requirements for streamline refinance loans should boost investor confidence and slow new production of GNMA IIs, Deutsche Bank analysts said. The change could be seen as mildly more restrictive than current pooling standards, particularly having more impact on VA loans, which unlike FHA, have no seasoning requirement to qualify for streamline refinancing, said Jeana Curro, bank research analyst. Under new guidance issued last month, in order to be pooled into standard Ginnie I or Ginnie II multi-issuer pools, streamline refi loans must show...
Mortgage lenders and servicers could see a dramatic change in the regulatory environment following the election of Donald Trump as president with a GOP-controlled Congress. During a campaign of many and sometimes conflicting promises, Trump vowed to repeal the Dodd-Frank Act, which would require Congressional action and, if carried out in its entirety, would abolish the Consumer Financial Protection Bureau. Some observers think a more likely outcome is a restructuring of the CFPB itself and curbing of some regulatory and enforcement actions, perhaps with new leadership. Mortgage lending issues were...
In a Trump administration it's possible Fannie Mae and Freddie Mac would would face more competition and have less of an economic edge over non-GSE rivals, said Cowen & Co.
CEO Messina added: “We are continuing to evaluate possible additional sales of our remaining MSR portfolio and to evaluate the best course of action for our real estate and servicing platforms, which we expect to complete by the end of January 2017.”
Deutsche Bank Securities said there’s been no new information to alter its view that the MIP would be cut this year. “However, we seem to be in the minority,” said research analyst Jeana Curro.
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