Whatever happened to the sale of SPS?

Rising spreads brought credit-risk transfer issuance to a halt in the fourth quarter and more than halved reinsurance transactions. Still, combined Fannie and Freddie CRT deals hit a record $21.64 billion in 2022. (Includes data chart.)

Credit Suisse completed the first part of the sale of its securitized products group; tighter pricing for Fannie with latest CRT offering; SEC’s rating service report light on details; retrial in GSE shareholder case set for July; RMF’s planned securitization scuttled.

The industry believes a DTI-based LLPA will create quality-control issues for lenders and raise prices for minority and first-time homebuyers.

Patrick McHenry, R-NC, new chair of the House Financial Services Committee, is viewed as a consensus-maker. But will his politics make it difficult to find common ground with the White House and Senate?

Overall, Fannie/Freddie MBS issuance in January was down 73.1% from a year ago.

The Fannie official began his presentation with the top 10 defects discovered by his QC team...

In January, lenders delivered 73.1% fewer mortgages to the GSEs than a year ago, but the month-over-month drop was just 4.5% from December. (Includes two data charts.)

Uncertainty caused by regulations and the complexity of calculating income and debt make DTI a poor metric to use in pricing a loan without the risk of lenders having to eat a new fee.

The heads of quality control at Fannie Mae and Freddie Mac describe the causes and treatment of defects. The percentage of repurchases has remained stable at Fannie, but is elevated at Freddie.