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Inside Mortgage Finance

August 15, 2008

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Private MI Production Drops Sharply in Second Quarter as FHA Hits New High

The FHA single-family program soared to a record $60.08 billion in new endorsements during the second quarter, according to a new Inside Mortgage Finance analysis of the rapidly changing mortgage insurance business. The rapid growth in FHA lending – up a phenomenal 49 percent from the first quarter – stands in stark contrast to a sharp downturn in new... [Includes three charts] Read More

Mortgage Insurers Pressed to Examine Capital Position as Losses Mount

All four free-standing MI companies reported huge losses in 2008 and have been forced to examine options for raising capital and maintaining their standing with Fannie Mae and Freddie Mac. The PMI Group acknowledged that it needed to raise “significant additional capital” earlier this year, and Mortgage Guaranty Insurance Corp. sold common stock and debentures to increase capital in... Read More

Conforming Jumbo Program Still a Dud After Four Months, Ginnie Mae Leads the Market

Production of conforming jumbo mortgages has gained some speed over the last four months, but a new analysis by Inside Mortgage Finance shows secondary market volume is still anemic. Through July, a total of just $6.10 billion of mortgages were securitized through Ginnie Mae, Fannie Mae and Freddie Mac programs specifically designed for conforming jumbo loans. Early this year... [Includes one chart] Read More

Mortgage Market Slowing Down as Credit Standards Tighten, Refinance Volume Slows

The mortgage market outlook for the second half of 2008 appears to be dimming as lenders and investors continue tightening credit standards and consumer demand remains sluggish. According to Inside MBS & ABS, an affiliated newsletter, new production of mortgage-backed securities sank to a seven-year low in July, with just $85.5 billion in new business. That was down 38... Read More

Fannie Mae Compelled to Clamp Down on Credit After Another Huge Quarterly Loss

Fannie Mae is ratcheting up its defense for the second half of the year and beyond, after the government-sponsored enterprise continued to hemorrhage red ink in the second quarter. Perhaps the biggest step involves Fannie’s decision to quit buying Alt A loans by the end of the year. Fannie has already tightened the underwriting for Alt A loans, causing the volume of new... Read More

Freddie Follows Fannie and Doubles Delivery Fee for Adverse Markets

After being badgered into abandoning widely-criticized policies that imposed stiffer underwriting standards on loans in declining markets, Freddie Mac has doubled the surcharge it levies for these loans to .50 percent. Fannie Mae announced the same fee hike a week ago. The government-sponsored enterprises’ declining markets policies restricted the loan-to-value ratios on properties in... Read More

Fannie Mae Unveils New Attorney Network; Loss Mitigation Incentives

Seeking to get a firmer grip on the foreclosure process, Fannie Mae is launching a new network of foreclosure and bankruptcy attorneys that may give servicers less leeway in handling seriously delinquent mortgages. In Announcement 08-19, the government-sponsored enterprise said the new network of foreclosure attorneys “will foster a more disciplined, end-to-end approach to default... Read More

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