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Inside The GSEs

June 10, 2016

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Healthy Surge in Purchase Activity Pushes GSE Biz Higher in May

Fannie Mae and Freddie Mac produced $73.23 billion of single-family mortgage-backed securities in May, a solid 6.3 percent increase from April, according to a new ranking and analysis by Inside The GSEs. The key ingredient was a 13.0 percent jump in the volume of purchase mortgages delivered by lenders last month. The GSEs securitized $33.25 billion of purchase-money mortgages in May, the strongest monthly total since October 2015 ... [Includes two data charts] Read More

Fannie Releases Re-performing Loan Data Ahead of Securitization

In anticipation of plans to securitize loans that had been previously delinquent, this week Fannie Mae announced that it will release historical data on some 700,000 re-performing loans. The release, scheduled for July, will include updated credit scores and loan-to-value ratios at issuance. This coincides with Fannie’s efforts to become more transparent and give the market the ability to analyze how these re-performing loans, or RPLs, have performed over ... Read More

Watt Receives Multiple Letters Urging for GSE Reform Action

Calls for a GSE recapitalization are growing louder as industry groups and lawmakers urge Federal Housing Finance Agency Director Mel Watt to exercise his authority and suspend the Treasury Department’s sweep of Fannie Mae and Fannie Mac profits. Letters to the FHFA and Treasury last week came from a group of small lenders, affordable housing organizations and civil rights advocates, while a group of 32 Democrats on Capitol Hill also chimed in ... Read More

FHFA’s Attempt to Consolidate Shareholder Cases Denied

A key judicial review panel last week said the Federal Housing Finance Agency’s March bid to consolidate all the GSE shareholder lawsuits and transfer them to one court was “inappropriate” and rejected the government’s request. The Judicial Panel on Multidistrict Litigation said that the government’s case for centralization was not strong enough. “On the basis of the papers filed and hearing session held, we conclude that centralization is not necessary for the ... Read More

USMI Poll Shows Consumers Want Private Capital to Take on GSE Risk

A new poll by the U.S. Mortgage Insurers showed strong consumer support for housing reform efforts that rely on private capital to take on a majority of the risk currently placed on the GSEs. Close to half of the 2,000 respondents, 48 percent, said the private sector should bear the responsibility for the risk of losses on bad loans. Some 19 percent of the respondents said borrowers should bear the responsibility, while another 19 percent were not certain who the loss should ... Read More

Judge Orders FHFA, Treasury to Produce More Documents

A judge overseeing a key GSE shareholder lawsuit says she will look at another batch of government documents to determine whether they should be made available to the plaintiffs. The Federal Housing Finance Agency and Treasury Department are opposing the decision. Judge Margaret Sweeney’s May 20 order, in the Fairholme Funds, Inc. v. The United States case, requests that the defendants provide the court with hard copies of some of the documents listed in the ... Read More

Sen. Warren Pushes for Comment On FHFA Super-Lien Opposition

Sen. Elizabeth Warren, D-MA, is urging the Federal Housing Finance Agency to solicit public comments on FHFA’s policy regarding super-liens imposed by homeowner associations on loans in foreclosure. The FHFA has said it is obligated to protect the rights of Fannie Mae and Freddie Mac and will aggressively do so. Super-lien laws are currently in 22 states and the District of Columbia. They allow homeowner associations that are owed fees to take priority over ... Read More

DBRS Analysis Shows GSE Credit-Risk Transfers Performed Well

Fannie Mae and Freddie Mac credit-risk transfer transactions have evolved since they were introduced in late 2012, according to a recent report by DBRS. The rating service analyzed Fannie’s Connecticut Avenue Securities and Freddie’s Structured Agency Credit Risk transactions and concluded that they have performed well with low delinquencies. DBRS attributed the strong performance to “prudent underwriting, the GSEs’ solid seller and servicer approval process and ... Read More

GSE Briefs

Freddie Mac Sells $130 Million of NPLs. Last week, Freddie Mac announced it auctioned 487 deeply delinquent loans serviced by JPMorgan Chase Bank from its portfolio on May 31, 2016. The loans have been delinquent for approximately three and half years on average and the transaction is expected to settle in August 2016. Mortgages that were previously modified and subsequently became delinquent comprise ... [Includes two briefs] Read More

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