The share price of Fannie Mae and Freddie Mac common has been on a bull run since late December, more than doubling in price. But how much more gasoline is left in the tank?
Struggling Ditech Financial late this week offered up a progress report on its future, saying — among other things — that one of its largest subservicing clients, New Residential Investment Corp., wants out of the contract.
The Community Home Lenders Association has expressed concerns that Ginnie Mae is on a mission to reduce the number of MBS issuers and tighten credit standards — moves that would affect its core members and hurt its housing mission.
The average daily trading volume in agency MBS fell to $212.9 billion in December, one of the lowest readings of the year, according to figures compiled by the Securities Industry and Financial Markets Association.
Some Democrats are concerned that FHFA nominee Mark Calabria isn’t the best person to chart the GSEs’ future course. A full Senate confirmation of Calabria could take several months, though.
Independent mortgage banking firms that weren’t adequately hedged at yearend are facing minor- to moderate-sized writedowns on the value of their servicing portfolios, according to interviews conducted by Inside Mortgage Finance this week.
The Treasury Department continues to work on administrative changes for Fannie Mae and Freddie Mac that can be implemented by the Federal Housing Finance Agency, but a blueprint won’t see the light of day until sometime in the spring, if then.