Agency MBS

Browse articles from all of our Newsletters related to Agency MBS.

December 11, 2018 - IMFnews

Short Takes: The Six Horsemen of the GSE Apocalypse / If You Have to Ask, You’re in Trouble / G-Fees Hold Steady / Plaza Home’s New Tag Line / NAMB Giving Away Software for Free

NAMB is giving away free software...

December 11, 2018 - IMFnews

One GSE Shareholder Speaks Up: Calabria Will be Constrained in His Mission to Dissolve Fannie and Freddie

James Fenkner says Calabria will be “constrained in his mission to dissolve Fannie and Freddie.”

December 10, 2018 - IMFnews

Short Takes: Hope in Cash-Out Refis / loanDepot’s Refi Stats / Position Filled / Chicago-Area Lender Gets Fannie Mae Approvals / More on Calabria and the FHFA Job / Mulvaney, Mnuchin Up for the Chief of Staff Job? / Waterstone Hires Rocky (Rockwell)

Fannie Mae has approved Neighborhood Loans, Lombard, IL, as a new seller/servicer...

December 10, 2018 - IMFnews

New MBA President Broeksmit Toes the Party Line on GSE Reform

The MBA chief also makes it blatantly clear that he is no fan of any “recap and release” proposals for the government-sponsored enterprises either...

December 10, 2018 - IMFnews

REIT Investments in GSE CRT Deals Could Surge

Fannie and Freddie addressed that problem by beginning to structure CAS and STACR transactions as real estate mortgage investment conduits – which REITs can buy more freely.

December 7, 2018 - Inside The GSEs

GSE Roundup

Freddie Mac issues a checklist, the IG at the FHFA concludes an investigation and brokers thrive in California. [Includes one data chart.]

December 7, 2018 - Inside The GSEs

Freddie to Buy Broad Range of Mortgages on Factory-Built Homes

Under a new pilot program announced last week, Freddie Mac will purchase mortgages on manufactured homes at the same low rates available for traditional site-built homes.

December 7, 2018 - Inside Mortgage Trends

Retail Lost Share in Major Product Groups

Retail originations declined more than third-party production in the three major mortgage-product categories during the third quarter of 2018, according to a new analysis by Inside Mortgage Trends. Based on survey data from a broad cross-section of lenders, retail originations fell 8.8 percent from the second to the third quarter. The wholesale-broker sector was down 1.9 percent, while correspondent production posted a 1.9 percent increase. The data ... [Includes two data charts]

December 7, 2018 - IMFnews

What We’re Hearing: Mark Calabria to Head the FHFA (Looks That Way) / Can Mulvaney Fix the U.S. Debt Problem? / Keeping the Debt Clock at the HFSC? / Kraninger Yes, Michael Bright No / Nomura and Ditech (More) / CMG Mortgage Hires Regency Executive / Home Point Goes All-TPO / The Midwest Mortgage Mecca

If Michael Bright is not confirmed in the current Congress, President Trump will have to re-nominate him...

December 7, 2018 - IMFnews

How to Shrink the GSE Footprint Without Having to Ask Congress To Do Anything

Want to shrink Fannie and Freddie? Cut investor loans, then move on to cash-out refis…

December 7, 2018 - IMFnews

Agency MBS Issuance Not-So-Bad in November 3Q18, Off by Just 1.0 Percent

Agency production last month was buoyed by an increase in securitization of refinance loans…

December 6, 2018 - IMFnews

Short Takes: Stock Market Ugly / Bring on the Cash-out Refis? / GSE Stocks Can’t Catch a Break / Carrington Readies First Non-QM MBS / New Penn Unveils New Name: NewRez

Carrington Mortgage is working on its first non-QM securitization...

December 5, 2018 - IMFnews

HFSC Hearing on GSE Bill Postponed. Time is Running out for Chairman Hensarling…

Some industry lobbyists believe the Senate Banking Committee hearing on GSE pilot programs will not be held this year at all.

December 4, 2018 - IMFnews

Short Takes: Nomura and Ditech? / Ocwen Sets a New Low / Fannie, Freddie and NPL Sales / Citadel’s Growth in Nonprime Servicing / A New Hire for Mortgage Network

Fannie Mae and Freddie Mac continue to sell NPLs but for how long?

December 4, 2018 - IMFnews

With No Chance of Passage, Hensarling’s GSE Reform Bill Gets an Airing on Thursday

When the measure was first introduced, one housing lobbyist quipped: “This is like someone laying on their death after drinking and sinning and finally realizing they need to get baptized. This is not being introduced for good political reasons.”

December 3, 2018 - IMFnews

Short Takes: The Hearing That Keeps Getting Postponed: GSE Pilot Programs / Remembering the Financial Accomplishments of President George H.W. Bush / Too Many Servicing Workers? / Mortgage Layoffs at SoFi / Vantage Score Hires Former Fannie Executive

Under the watch of President George H.W. Bush, S&Ls were re-regulated and given a core housing mission.

December 3, 2018 - IMFnews

Freddie Brings Conventional Financing to New Generation of Manufactured Homes

Although the manufactured home industry is lobbying for chattel lending, Fannie Mae and Freddie Mac still require real property for collateral.

December 3, 2018 - IMFnews

FHFA IG Sends Report on Watt’s Alleged Misconduct to President, Others

The specific nature of the allegations was not disclosed…

December 3, 2018 - IMFnews

Prime Non-agency MBS May Plateau, Nonprime and Expanded Prime Expected to Grow

KBRA said nonprime issuance in 2019 should benefit from an increase in origination volume and other efficiencies…

November 30, 2018 - Inside FHA/VA Lending

Industry Groups Push for Full Senate Vote on Bright Nomination

A coalition of industry groups strongly urged Senate leadership to bring up Michael Bright’s nomination for president of Ginnie Mae for a vote in the full Senate.

November 30, 2018 - IMFnews

Retail Channel Posted Highest FICO Scores in 3Q18

However, average debt-to-income ratios were all over the map…

November 30, 2018 - Inside MBS & ABS

Ginnie Focus on Issuer Liquidity and New Subservicing Requirements is Rubbing Some the Wrong Way

Ginnie Mae’s recent focus on issuer liquidity and requirements for using subservicing vendors has received high marks from key industry factions and former regulators, but not everyone is happy.

November 29, 2018 - Inside Mortgage Finance

Agency Share of Jumbo Mortgage Lending Up in 3Q18; Will Higher Loan Limits Make a Difference?

Fannie Mae, Freddie Mac and Ginnie Mae saw a slight increase in their share of big-ticket mortgage lending in the third quarter as the non-agency jumbo sector cooled, according to an Inside Mortgage Finance ranking and analysis. [Includes three data charts.]

November 29, 2018 - IMFnews

Short Takes: News Soon from Trump on the FHFA Job? / A Place-Holder / A Bright Spot, If You Can Find One / The Better Question Might Be: Who Isn’t Going Digital? / Upcoming: CFPB Advisory Board Meeting

Joseph Otting would not be the permanent director but would be a place-holder until...

November 29, 2018 - IMFnews

Agency Share of Jumbo Mortgage Lending Increased in 3Q18

Year-to-date agency securitization of conforming-jumbos totaled $72.36 billion as of the end of September…

November 28, 2018 - IMFnews

GSE Purchase Market Lost Steam in October

Most of the refinancings facilitated by Fannie and Freddie are cash-out deals…

November 28, 2018 - IMFnews

Industry Has a Muted Reaction to High GSE Loan Limits. However…

Former MBA Chief Dave Stevens on the higher conforming loan limits: “For an industry led mostly by conservatives, this dependence on a socialized financial system is really ironic.”

November 27, 2018 - IMFnews

Short Takes: Homebuyers Hitting the Brakes / But No Reason to Panic / Senate Moves Closer to Vote on Kraninger / Freddie’s ‘Sweat Equity’ Deal / A New Hire for Embrace Home Loans

Arch Chief Economist DeFranco says despite lower sales, it’s still a seller’s market in most cities…

November 27, 2018 - IMFnews

GSE Loan Limit Set at $484,350 for 2019, a Gain of Almost 7.0 Percent

HERA allows exceptions for the maximum conforming loan limits for “high cost areas.”

November 27, 2018 - IMFnews

What Might a New FHFA Director Do to the Secondary Market?

Stakeholders don’t anticipate the FHFA, with a new director nominated by President Trump, to move immediately to reduce the current benchmark loan limit...

November 26, 2018 - IMFnews

Short Takes: Steven Mnuchin Packing His Bags? / Probably Not / The Key to Administrative Reform of the GSEs: The Next FHFA Director / According to the AEI / A Promotion at Ocwen Financial

Cowen believes Mnuchin will survive the turbulence but notes the situation still poses a risk to Fannie Mae, Freddie Mac and the big banks…

November 26, 2018 - IMFnews

White House Contemplating Calabria for the FHFA Job. Big or Gradual Changes in the Wings?

The implication is that banks – which seems to have excess capacity on their balance sheets – could simply hold conventional loans in portfolio…

November 26, 2018 - IMFnews

Bank Holdings of MBS Drifted Lower in 3Q18

A huge chunk of the fall-off in Fannie/Freddie MBS holdings occurred at Wells Fargo, which reduced its investment in these securities by $7.31 billion.

November 26, 2018 - IMFnews

Biting Comments on FHFA’s Proposed Rule on UMBS

Making sure the MBS issued by the two GSEs perform identically, within narrow limits, is key to convincing traders…

November 21, 2018 - Inside Mortgage Trends

Retail Channel Produces Best FICO Scores in 3Q18

Retail-originated loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the third quarter generally had stronger credit scores than similar loans produced by third-party lenders, according to a new Inside Mortgage Trends analysis of loan-level data. The average credit score for a retail purchase loan pooled in an agency mortgage-backed security during the period was 735.47, compared with 720.20 for correspondent purchase ... [Includes two data charts]

November 23, 2018 - Inside The GSEs

GSE Roundup

Fannie Mae and Freddie Mac extended disaster relief provisions to areas in California that have been ravaged by wildfires and declared major disaster areas by President Trump.

November 23, 2018 - Inside The GSEs

Freddie Expands Sweat Equity Option in Home Possible

It’s now possible for homebuyers to use sweat equity to pay their entire downpayment and all closing costs as Freddie Mac has expanded the parameters of its Home Possible mortgage.

November 23, 2018 - Inside The GSEs

New GSE Servicer Guidelines for Short Sales and Deeds-in-Lieu

At the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac have simplified policies on short sales and deed-in-lieu of foreclosures. The new policies are intended to mitigate losses for the government-sponsored enterprises and servicers by spelling out when servicers can consider borrowers for these actions and what documentation is necessary.

November 23, 2018 - Inside The GSEs

New FASB Rules May Require Boost in GSE Loan-Loss Reserves

Fannie Mae’s and Freddie Mac’s loan-loss reserves could be substantially impacted by a new accounting standard that requires companies to immediately book potential losses.

November 23, 2018 - Inside The GSEs

Moelis Proposes Starting GSE Recapitalization Before Reform

Moelis & Co. last week released an updated version of its “Blueprint for Restoring Safety and Soundness to the GSEs” that calls for recapitalizing Fannie Mae and Freddie Mac immediately.

November 23, 2018 - Inside The GSEs

GSEs Favor FHFA’s Bifurcated Alternative Capital Plan

Fannie Mae and Freddie Mac say they support the Federal Housing Finance Agency’s proposal to include a leverage ratio on their future capital requirements.

November 22, 2018 - Inside Mortgage Finance

Servicers Call for Uniform Data Standards, Seek Better Process for Servicing Transfers

Fannie Mae and Freddie Mac announced plans for uniform servicing data standards in 2012 but stopped the project the following year due to concerns from servicers already dealing with elevated delinquencies.

November 22, 2018 - Inside Mortgage Finance

Tighter Caps on Ginnie Servicers, Issuers Could Be a Challenge, But There Are Benefits As Well

New requirements from Ginnie Mae addressing counterparty risk management by issuers could wind up making the agency’s approval more valuable, while requiring more transparency about their financing of mortgage servicing rights.

November 23, 2018 - Inside MBS & ABS

Ginnie Mae Tightens Issuer-Approval Rules, Imposes Notification Requirements on Subservicer Advances

Ginnie Mae last week issued guidance tightening requirements for entities seeking to become approved issuers, including a credit evaluation to determine their financial strength as well as a new notification requirement for subservicers.

November 21, 2018 - IMFnews

FHFA Trying to Find a Capital Balance That Can Handle Market Cycles

In its comment letter to the FHFA, Fannie Mae suggests the rule should use original credit scores and LTV ratios, rather than mark-to-market values…

November 20, 2018 - IMFnews

Short Takes: A New 52-Week Low for Ocwen / John Britti’s Stock Awards / The Dow Swoons, Rates Fall / Freddie’s ACIS Deal / Ed Pinto Weighs in on GSE Capital / Merry Christmas, Buy a House (The Day After) / UWM Still #1 in Wholesale

Ed Pinto wants a 4.0 percent capital ratio for Fannie Mae and Freddie Mac...

November 19, 2018 - IMFnews

MIAC Hits the Market with a $7B MSR Package

Loans in the pool have an average age of 24 months.

November 16, 2018 - Inside FHA/VA Lending

GNMA’s Liquidity Concerns Prompt Demand for Contingency Plans

Increasingly worried about the financial condition of its largest nonbank issuers amid declining market conditions, Ginnie Mae in late October shot off a liquidity letter to 14 companies, asking them to develop contingency plans. The identity of the firms was not revealed to Inside FHA/VA Lending, but it’s no secret which companies rank among the top echelon of issuer/servicers. The five largest nonbank Ginnie MBS servicers as of Sept. 30 are PennyMac Financial Services, Lakeview Loan Servicing, Freedom Mortgage, Quicken Loans and Mr. Cooper. According to the letter, a copy of which was obtained by this publication, Ginnie wants the companies to develop strategies to right-size their operations. One of the agency’s goals is to lay the groundwork for financial stress tests that all issuer/servicers eventually must meet. Ginnie expects to sit down with the executive management teams of the ...

November 16, 2018 - Inside FHA/VA Lending

Ginnie Mae Continues to Tighten Issuer Standards, Accountability

This week, Ginnie Mae issued an all-participants memo dictating new standards for firms seeking to become issuers, including the stipulation that applicants submit to a corporate credit evaluation. Ginnie said the financial exercise will be “similar to those employed by credit rating agencies.” The evaluation will determine whether an applicant is qualified to be an issuer or whether additional criteria should be imposed even if the basic standards are met. Applicants that rely on a subservicer arrangement will be scrutinized even more. The bulletin also notes that, effective immediately, the agency is implementing new notification requirements for MBS issuers engaged in “certain subservicer advance or servicing income agreements, which do not require prior Ginnie Mae approval, but can impact an issuer’s ongoing liquidity position and financial obligations.” While Ginnie currently permits subservicers to advance ...

November 16, 2018 - Inside FHA/VA Lending

VA Volume Slumps as Streamlined Refi Business Falls Sharply in 3Q18

VA mortgage originations fell significantly in the third quarter of 2018 due to a decline in purchase loans and a sharp drop in refinancing from the previous quarter. Rising interest rates and regulatory restrictions were mostly to blame, said lenders. VA production during the third quarter was $40.2 billion, down 21.0 percent from the quarter ago. Volume in the first nine months of 2018 dropped a mere 0.7 percent from the same time period last year. Purchase loans, which comprised 75.3 percent of VA’s guaranty business, were down 12.6 percent. On the other hand, year-over-year production increased 14.0 percent. VA refinance was down 39.0 percent from the second quarter and 18.1 percent on a year-to-date basis. The decline was fueled primarily by an 80.8 percent drop in VA streamline refis or Interest Rate Reduction Refinance Loans from the second quarter. IRRRL endorsements in the third quarter ... [Charts]


With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.
Yes, but only incrementally.
We’re pondering a move into non-QM, but haven’t made up our mind.
No, definitely not. We view it has too risky.

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