Agency MBS

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

April 26, 2017 - IMFnews

Short Takes: More GSE Reform Plans / Fannie-Freddie Speculators May Make Out After All / Ocwen Gets a Break / Hey Ben, Call Your Friends in the White House and Tell Them … / This HUD Job About to be Filled?

Is the White House pondering HUD-related nominations?

April 26, 2017 - IMFnews

Thanks to UGC Purchase, Arch MI Boosts Gross MI Premiums by 214 Percent

Arch reported primary mortgage insurance in force of $237.8 billion at March 31…

April 25, 2017 - IMFnews

Short Takes: Fannie Mae’s Goal: to Help Those with Student Loans / As Long as Someone Else Pays / Fannie is NOT Entering the Student Loan Business / The Key: Cutting G-Fees / Quicken Hires Fiat’s Ad Guy

A Fannie spokesman stressed that this effort in no way represents the GSE getting into the student loan business…

April 25, 2017 - IMFnews

Nonbanks Keep Building Market Share in GSE Servicing Rights

Nonbank mortgage firms increased their servicing portfolios by 3.0 percent during 1Q17, more than double the 1.3 percent increase in total Fannie/Freddie servicing during that period.

April 25, 2017 - IMFnews

ICBA Calls for Delay of Single Security Until GSEs are Recapitalized and Released from Conservatorship

The ICBA believes the GSE risk-sharing securities are illiquid and would likely “dry up” in times of market stress.

April 24, 2017 - Inside the CFPB

Dimon Calls for National Mortgage Servicing Standards from CFPB

JPMorgan Chase Chairman and CEO Jamie Dimon recently called for national mortgage servicing standards as one key reform that will significantly increase the availability of mortgage credit to qualified borrowers. “Mortgage servicing is a particularly complex business in which the cumulative impact of regulations has dramatically increased operational and compliance risk and costs,” costs which get passed on to borrowers, he said in his annual letter to shareholders. However, “The most promising opportunity in mortgage servicing is to adopt uniform national servicing standards across guarantors, federal and state regulators, and investors,” Dimon noted. And Congress doesn’t have to get involved to address this. “In particular, the U.S. Treasury is well-positioned to lead key players in the mortgage industry (the CFPB ...

April 24, 2017 - IMFnews

Investors Unite Criticizes Parts of MBA’s GSE Plan

Investors Unite: “We’re encouraged to see that MBA has changed its position on both of these issues and we also note that in their [sic] paper, MBA acknowledges the role of the Federal Housing Finance Agency … in stabilizing the companies during the conservatorship.”

April 24, 2017 - IMFnews

Servicing Transfer Activity Slowed in 1Q17; Fannie’s Temporary Freeze a Factor

Matrix Financial Services edged out Lakeview Loan Servicing as the top acquirer of servicing rights through co-issuance deals…

April 21, 2017 - Inside Mortgage Trends

Servicing Transfer Activity Slowed in 1Q17 Despite Spike in Freddie Bulk Deals

The secondary market in agency mortgage servicing rights cooled off in the first quarter of 2017 after a hectic end to 2016, according to an exclusive analysis and ranking by Inside Mortgage Trends. A total of $109.78 billion of agency MSR changed hands during the first three months of the year, down 32.9 percent from the fourth quarter of 2016. Part of that was due to a 26.2 percent decline in new business volume at Fannie Mae, Freddie Mac and Ginnie ... [Includes three data charts]

April 21, 2017 - IMFnews

What We’re Hearing: How do you Solve a Problem Like Ocwen? / Hints that Something was Afoot / Should Ocwen Call its Overseas Workforce Home? / Influencing the GSE Debate / Ginnie Mae Cracks the $1.8 Trillion Mark

And now the obvious questions becomes: where does Ocwen go from here? The company can’t possibly be sold because of all the outstanding lawsuits and “legacy” problems...

April 21, 2017 - Inside The GSEs

SFIG Weighs in on GSE Credit -Scoring Alternative Bill

The Structured Finance Industry Group is worried that the Credit Competition Score Act of 2017 could result in an excessive number of approaches to credit scoring. Rep. Ed Royce, R-CA, introduced H.R. 898 in February with Reps. Kyrsten Sinema, D-AZ, and Terri Sewell, D-AL. The bill lets...

April 21, 2017 - Inside The GSEs

FHFA Increased MWOB Biz in 2016, But Challenges Remain

The Federal Housing Finance Agency said it increased the number of minority and women-owned businesses it awarded contracts to in 2016. But several obstacles make expanding its business with MWOBs complicated. The agency recently released its annual report to Congress, which details initiatives and accomplishments during the year to increase diversity and inclusion. This year’s report also mentioned a diversity and inclusion program to examine the same practices within Fannie Mae, Freddie Mac and the Federal Home Loan Banks. In 2016, the FHFA expanded...

April 21, 2017 - Inside The GSEs

Fannie’s Second Reperforming Loan Sale Results

DLJ Mortgage Capital, an arm of Credit Suisse, was the winning bidder of all four pools of Fannie Mae’s second reperforming loan sale transaction. The GSE announced the result last week and noted that the deal included 7,508 loans totaling $1.62 billion in unpaid principal balance. The deal, announced on March 14, was...

April 21, 2017 - Inside The GSEs

Freddie Looks to Increase Mortgage-Ready MH Buyers

Freddie Mac introduced a curriculum to help potential manufactured homebuyers in Kentucky get a mortgage and is now looking to increase lender participation in the program. The GSE partnered with Next Step Network, a housing intermediary based in Louisville, and three nonprofit housing counseling agencies to create the online education curriculum aimed at better preparing Kentucky homebuyers with blemished credit histories. Since the initiative was rolled out...

April 21, 2017 - Inside The GSEs

Former FHFA Director Named Housing Policy Center President

Ed DeMarco, former acting director of the Federal Housing Finance Agency, was named the new president of the Financial Services Roundtable’s Housing Policy Center last week. HPC, a proponent of housing finance reform, has called the current framework “unsustainable.” DeMarco took FHFA’s reins in 2009, shortly after the start of the conservatorship of Fannie Mae and Freddie Mac. He then left the FHFA after a five-year stint and became a senior fellow in residence at the Milken Institute’s Center for Financial Markets. Prior to his time at FHFA, he was...

April 21, 2017 - Inside The GSEs

Calabria Hints at No Official Plan for Fannie, Freddie Reform Yet

Despite various rumblings suggesting that a plan may be in the works, the Trump administration appears to have no current plan for reforming Fannie Mae and Freddie Mac. Speaking on a housing affordability panel sponsored by the American Enterprise Institute earlier this month, Mark Calabria, Vice President Mike Pence’s chief economist, said the administration may even go with the Corker-Warner GSE reform plan put forth by Senators Bob Corker, R-TN, and Mark Warner, D-VA. Calabria, former director of financial regulation studies at the Cato Institute, got...

April 21, 2017 - Inside The GSEs

MBA Expands on Earlier Fannie, Freddie Reform Proposal

The Mortgage Bankers Association, this week, released more details in conjunction with its GSE reform proposal published earlier this year. Expanding on some of the concepts presented in January, the MBA paper includes more detailed end-state reform recommendations including elaborating on the transition plan. The trade group’s approach for reforming Fannie Mae and Freddie Mac calls...

April 21, 2017 - Inside The GSEs

Nonbanks Keep Building Market Share in GSE Mortgage Servicing

Nonbank mortgage servicers – especially those that aren’t juggernauts in the mortgage lending business – were the fastest-growing segment of the GSE servicing market during the first quarter of 2017. A new Inside The GSEs analysis shows that nonbank servicers accounted for 33.3 percent of the $4.552 trillion supply of Fannie Mae and Freddie Mac servicing outstanding at the end of March. The analysis is based on single-family loans in GSE mortgage-backed securities and does not include whole loans held by Fannie and Freddie in portfolio. Nonbanks increased...[Includes two data tables]

April 21, 2017 - IMFnews

Incenter Offers $898 Million of GSE ‘Alt A’ Servicing Rights

The seller of the Alt A servicing portfolio was not identified by name, but IMA described the firm as a “well-capitalized and long standing bank…”

April 21, 2017 - IMFnews

Veep Economist Calabria Hints at No Official Plan for Fannie/Freddie Yet

“Maybe we end up in the exact same spot as the last generation, maybe we end up with Corker-Warner,” said Calabria.

April 21, 2017 - Inside MBS & ABS

MBA Fleshes Out Details on Mortgage-Reform Plan To Convert Fannie and Freddie to New ‘Utilities’

The Mortgage Bankers Association is sticking with its proposal to keep Fannie Mae and Freddie Mac alive, but with new charters, while inviting other players to compete with the two giants in the securitization of conventional mortgages. The trade group this week proposed a utility-like model for the re-christened government-sponsored enterprises. They would inherit the personnel and systems the GSEs now have, but become limited-purpose, publicly owned securitization businesses under tight government regulation. Other entities could apply...

April 21, 2017 - Inside MBS & ABS

MBS Trading Volume Inched Up in March; New Bond Creation Could Increase … All Eyes Are on the Fed

The average daily trading volume in agency MBS reached $207.8 billion in March, a mere 2.66 percent gain compared to the month prior and a sign that investors are in a holding pattern these days, trying to decipher both the stock market and geopolitical events. According to figures compiled by the Securities Industry and Financial Markets Association, average daily trading volume jumped 9.7 percent compared to the same month a year ago. In January 2017, $229.8 billion in product changed hands daily. Meanwhile, a recent decline in rates means...

April 21, 2017 - Inside MBS & ABS

GNMA Attributes VA Refi Drop to Anti-Churning Rule As Agency Monitoring of Serial Refinancing Continues

A significant drop in the VA refinance market in the first quarter is proof that Ginnie Mae’s anti-churning policy has been effective in curbing serial refinancing of VA loans, according to agency officials at the recent VA Lenders Conference in Kansas City, MO. A hefty 42.7 percent decline in VA refi volume during the first three months of 2017 reflects an apparently successful effort by Ginnie to stop the practice of refinancing VA loans within six months of closing. By comparison, securitization of VA purchase loans fell 17.3 percent from the fourth quarter. John Getchis, senior vice president at Ginnie, said...

April 20, 2017 - Inside Mortgage Finance

Fewer Renters Looking for a Purchase Mortgage, Saving for Downpayment a Significant Hurdle

The share of renters who expect to purchase a home is declining, according to a survey conducted for Freddie Mac. Even though many renters reported optimism about their financial situations, saving for a downpayment and other factors present hurdles to financing a home purchase. Some 41 percent of renters surveyed said they expect to purchase a home, down from 45 percent in September. Freddie also found that the number of renters who say they are working toward homeownership fell from 21 percent in September to 15 percent in March. Most renters said...

April 20, 2017 - Inside Mortgage Finance

Agency Servicing Market Continued Growing In 1Q17 as Nonbank Appetite Remained Robust

The outstanding supply of Fannie Mae, Freddie Mac and Ginnie Mae servicing continued to grow during the first quarter of 2017 despite a downturn in new mortgage-backed securities issuance by the three agencies, according to a new analysis and ranking by Inside Mortgage Finance. A total of $6.225 trillion of agency single-family MBS was outstanding at the end of March, up 1.4 percent from December 2016. That number does not include agency servicing of whole loans held on the books of Fannie and Freddie, or a smattering of adjustable-rate mortgages in seasoned Freddie securities. Freddie posted...[Includes two data tables]

April 20, 2017 - IMFnews

MBA Issues 60-Page Report on Reforming Fannie and Freddie

The trade group first launched its GSE task force in late 2012 with 17 initial executive members, including Bob Ryan, a Wells Fargo executive who is now the acting deputy director of the division of conservatorship at the Federal Housing Finance Agency.

April 20, 2017 - IMFnews

Agency Servicing Continues to Grow – Nonbanks Increase Holdings by Almost 22 Percent

Nonbanks serviced $2.418 trillion of agency loans at the end of the first quarter, up 21.6 percent from a year ago…

April 19, 2017 - IMFnews

Incenter Selling GSE/Ginnie Servicing Package

On a loan count basis, Michigan represents the largest chunk of the portfolio at 37.1 percent.

April 18, 2017 - IMFnews

Short Takes: Randy Quarles, the Fed and the GSEs / What Role? / A Sign from Movement Mortgage? / Investing in a MortgageHippo / LoanCare Hires CIO

Of course the bigger question is this: what role, if any, will the Fed play in deciding the future of Fannie and Freddie?

April 14, 2017 - Inside FHA/VA Lending

Patenaude for DepHUDSEC? Bright To Replace Tozer at Ginnie Mae?

The Trump White House has yet to fill key positions at the Department of Housing and Urban Development and agencies that fall under the HUD umbrella, including the FHA and Ginnie Mae. According to industry officials who claim to have some knowledge of the process, the administration is seriously considering Pam Patenaude to be the deputy HUD secretary. Patenaude is president of the J. Ronald Terwilliger Foundation for Housing America’s Families. She served as HUD assistant secretary for community, planning and development during the George W. Bush administration. Meanwhile, Michael Bright has been mentioned as a candidate to be the next president of Ginnie Mae. Bright currently serves as director, Center for Financial Markets at the Milken Institute. During his career he has worked for mortgage lender/servicer PennyMac, investment banking firm BlackRock and ...

April 14, 2017 - Inside FHA/VA Lending

GNMA Servicing Market Thawing? Stakeholders Hope as Market Stirs

When it comes to selling Ginnie Mae mortgage servicing rights the past two years, it’s been mostly a bear market, but all that may be changing soon. At least that is what sellers and their merger and acquisition advisors hope. Mark Garland, executive vice president of MountainView Financial Solutions, Denver, said that of late, “We have seen a few Ginnie trades go off at a level closer to full value.” Garland told Inside FHA/VA Lending that he expects this trend to continue with prices tightening over the summer “provided rates hold and [prepayment] speeds stay largely in line with expectations.” And if that happens, there could be an increase in the ability of FHA/VA lenders to securitize excess cash flows. But that’s getting a little ahead of the equation. Over the past 24 months, the Ginnie MSR market has been difficult for two reasons: the fear of lawsuits/sanctions tied to FHA lending, and fast ...

April 14, 2017 - Inside FHA/VA Lending

GNMA Officials Attribute Decline in VA Refis to Anti-Churning Policy

A steep drop in VA-backed securities issuance in the first quarter of 2017 suggests that Ginnie Mae’s efforts to curb serial refinancing of VA loans are working, according to agency officials. Speaking on a panel at the annual VA Lenders Conference in Kansas City, MO, this week, Ginnie executives said that a change in pooling requirements for streamlined refinance mortgages appears to have curbed a destructive appetite for refinancing new VA loans within six months of closing. The practice has caused faster prepayments in Ginnie mortgage-backed securities pools and smaller payouts to investors. VA refi volume fell 42.7 percent from the previous quarter (see chart on page 2), contributing significantly to the 32.2 percent decline in total VA loan securitization during the period. John Getchis, senior vice president at Ginnie Mae, said he does not think the churning trend will continue because the ...

April 14, 2017 - Inside FHA/VA Lending

PennyMac Claims Top Rank in Ginnie MBS Production in 1Q17

There is a new boss in the Ginnie Mae mortgage-backed securities market. PennyMac Financial rose to the top of the issuer ranking in the first quarter of 2017 despite a sharp decline in volume, according to a new analysis and ranking by Inside FHA/VA Lending. PennyMac issued $10.78 billion of single-family Ginnie securities during the first three months of the year. The figures in this analysis are based on Ginnie loan-level disclosures, which truncate loan amounts to $1,000 increments. PennyMac’s first-quarter production was off 27.9 percent from the fourth quarter of 2016, a slightly bigger decline than the 24.8 percent drop in overall Ginnie issuance. Even though the firm fared slightly worse than the total market, its first-quarter downturn was less severe than Wells Fargo’s. Wells has been the top Ginnie producer for a long time, as well as the top player in most segments of the ... [ Charts ]

April 14, 2017 - IMFnews

FHFA IG Cites Problems with the Agency’s Examiner Program

The agency has acknowledged the need for a commissioned examiner program to provide classroom and on-the-job training…

April 13, 2017 - IMFnews

Short Takes: Ed DeMarco and TBTF / An Accomplishment: G-Fee Parity / Hensarling’s Donors / GSEs Stay Busy on the Multifamily Front / What Mortgage Directors Earn

In 2012, the g-fee disparity fell to about 6 bps. By 2013 it was just about gone. And you can credit Ed DeMarco…

April 12, 2017 - IMFnews

Short Takes: CFPB Continues to Hire – Examiners / The Ginnie Mae Job? / An End to ‘Implied’ Guarantees / The Ginnie Mae ‘Plan’ / Fears About the Mortgage Interest Tax Deduction

More CFPB examiners means more CFPB exams? Maybe, maybe not...

April 12, 2017 - IMFnews

Still a Better Deal: Selling ‘Conforming’ Jumbos to Fannie and Freddie. But for How Long?

However, conforming jumbos accounted for 36.3 percent of the $1.03 billion non-agency MBS JPMorgan Chase issued in February.

April 12, 2017 - IMFnews

Financial Services Roundtable Names Former FHFA Director Ed DeMarco President of its HPC

In June of last year, DeMarco co-authored a Milken Institute white paper entitled “Why Housing Reform Still Matters." In it, he argues: "…we need to preserve the liquidity and capacity of an active, globally financed MBS market…”

April 12, 2017 - IMFnews

Investment Banker Craig Phillips is Treasury's ‘Point Person’ on GSE Reform

One trade group said Phillips has already reached out to the industry, gathering opinions on key issues facing the market, including Fannie and Freddie…

April 11, 2017 - IMFnews

Treasury Backs Away from Supporting Current FHFA Structure

In a March 24 advisory, the Treasury Department announced its change of heart regarding the legal structure of the FHFA…

April 11, 2017 - IMFnews

Mortgage Brokers Lost GSE Market Share in 1Q17; Lowest Reading in Six Years

A new Inside Mortgage Trends analysis reveals that the supply of mortgages originated in the wholesale-broker market fell 42.8 percent during 1Q17…

April 10, 2017 - IMFnews

Short Takes: Ocwen’s $6 Million Man / 21 Board Meetings in One Year / GSE Reform on Track for Next Year? / Senate Meeting on GSE Reform / FirstKey’s SFR Deal

Cowen assigns a 65 percent probability to a GSE bill becoming law next year…

April 10, 2017 - IMFnews

Phoenix Capital Selling $2.5 Billion of Bulk GSE Servicing Rights

It’s not often that FHLB servicing rights hit the auction block…

April 10, 2017 - IMFnews

Are Nonbanks Losing Their Mojo with Fannie and Freddie? GSE Market Share Slips Again

Single-family volume was down from the unusually high level in the fourth quarter of last year…

April 7, 2017 - Inside The GSEs

GSE Roundup

Freddie Mac’s vice president of single-family business transformation is one of five industry innovators honored by the Mortgage Bankers Association with an MBA Insights Tech All-Star Award recognizing industry leaders who have made outstanding contributions in mortgage technology.

April 7, 2017 - Inside The GSEs

GSE Credit-Risk Transfers Increased, Targets Met in 2016

The GSEs increased their credit-risk transfers by 30.4 percent in 2016 from the previous year. This means that Fannie Mae and Freddie Mac both hit their risk-transfer targets by executing different forms of CRTs that covered $548.0 billion of mortgages, according to a recent report from the Federal Housing Finance Agency. “Fannie Mae and Freddie Mac have made credit risk transfer a regular part of their business and they continue to improve and expand the scope of their programs and explore different transaction structures,” said FHFA Director Melvin Watt. The FHFA directed the GSEs to transfer credit risk on 90 percent of their targeted business: long-term, fixed-rate mortgages with loan-to-value ratios exceeding 60 percent.

April 7, 2017 - Inside The GSEs

CHLA Advocates for Recap and Release in Latest GSE Proposal

The Community Home Lenders Association proposed a GSE reform plan last week using a utility that would let Fannie Mae and Freddie Mac build capital and would release the GSEs back into the private sector. Unlike most of the reform proposals that have been floated in the past year, the trade group for community-based mortgage lenders suggests recapitalizing and reprivatizing the GSEs with the mindset that comprehensive legislation is not needed at this time. Its plan calls for a capital restoration and uses a utility model that it suggests the Federal Housing Finance Agency develop, with the Treasury’s and Congress’ blessings. CHLA said that the FHFA is the appropriate entity to develop such a plan with...

April 7, 2017 - Inside The GSEs

GSE Scorecard Highlights Credit Access Progress in 2016

The Federal Housing Finance Agency late last month published its annual GSE Scorecard progress report and noted that Fannie Mae and Freddie Mac have made great strides in meeting their conservatorship goals, including increasing access to mortgage credit and reducing taxpayer risks. Many of the objectives set by the scorecard were focused on testing new concepts or perfecting existing ones, and relatively few of them had hard targets in terms of business volume. The first highlighted strategic goal for the GSEs was maintaining credit availability, including increasing access to credit. There hasn’t been much change in the credit profile of Fannie and Freddie business, and the regulator did not set any specific goals other than the affordable housing goals.

April 7, 2017 - Inside The GSEs

Freddie to Offer Appraisal Waiver in 2017 as Part of Reps and Warrants

Soon both GSEs will offer property inspection waivers as part of an effort to reduce lender uncertainty when it comes to buybacks. Freddie Mac is set to introduce its appraisal waiver within the next few months and Fannie Mae has had one since December. Appraisals are often the leading cause of buyback concerns, according to Allen Maulsby, executive vice president at Colonial National Mortgage. He told Inside The GSEs that Fannie and Freddie are moving in the right direction when it comes to addressing buyback relief. “Anything that they can do to give us rep-and-warrant relief is good. I think it probably has alleviated some repurchase anxiety, particularly around appraisals,” he said.

April 7, 2017 - Inside The GSEs

Industry Experts Say GSE Reform Unlikely Anytime Soon

While hopes were high for GSE reform with the incoming Trump administration, housing industry experts seem to agree that major changes at Fannie Mae and Freddie Mac may not happen anytime soon. Panelists at a housing finance conference sponsored by Moody’s agreed with the ratings agency’s sentiment and said that the policy environment is in flux and unpredictable with GSE reform unlikely in the near term. “The election of Donald J. Trump as president amid Republican control of Congress has created a new political landscape with potential implications for the U.S. housing and finance markets,” said Moody’s in a recap of the conference. “However, panelists at our conference saw targeted legislative or regulatory changes as...


With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher


50% to 74%


30% to 49%


Under 30%