Agency MBS

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

October 19, 2018 - Inside FHA/VA Lending

Around the Industry

Bright’s Confirmation Delayed. With the Senate adjourning last week for the midterm elections, Michael Bright’s confirmation as president of Ginnie Mae will have to wait. President Trump nominated Bright, executive vice president and chief operating officer, last May and he was confirmed by the Senate Committee on Banking, Housing and Urban Affairs in August. Ginnie Mae has been without a permanent head since January 2017 when former president Ted Tozer stepped down. Bright has since been acting president of the agency. Both the House and the Senate will be back on Nov. 13 for a lame-duck session. President Trump Wants 5 Percent Budget Cuts from Cabinet Agencies. President Trump has directed his Cabinet secretaries to trim 5 percent from their respective agencies’ FY2019 budget request. Some agencies can do more than 5 percent, he suggested. It is unclear which of the ...

October 19, 2018 - Inside FHA/VA Lending

CMLA Seeks New Language for Bill Addressing ‘Orphan’ VA IRRRLs

Community mortgage lenders are asking the U.S. Senate to consider with caution before voting on legislative language passed recently by the House of Representatives to address “orphan” VA streamline refinance loans. Specifically, the Community Mortgage Lenders of America asked the Senate to step back and allow some time for substitute language to be presented with input from the industry and the Department of Veterans Affairs. At issue is the wording in H.R. 6737, the Protect Affordable Mortgages for Veterans Act of 2018. The bill fixes a technical issue that prevented VA lenders from pooling certain VA Interest Rate Reduction Refinance Loans in Ginnie Mae mortgage-backed securities pools. Approximately 2,500 VA refi loans were affected by an inconsistency between the loan seasoning guidelines issued by Ginnie in late 2016 and provisions in the ...

October 19, 2018 - Inside FHA/VA Lending

Prepay Speeds Remain a Concern for Ginnie Mae, Overseas Investors

Ginnie Mae has made considerable progress in dealing with rapid prepayments on VA loans but prepayment speeds on Ginnie mortgage-backed securities in general continue to annoy investors. Prepay speeds on Ginnie MBS are now at the lowest since 2014 but it is not enough for agency Executive Vice President Maren Kasper to feel confident as she addressed the annual convention of the Mortgage Bankers Association this week. “Our prepayment issue is not solved,” said Kasper, as she spoke on a panel with representatives of government-lending programs. The agency continues to hear from investors about the problem, she said. Kasper cited two instances where Ginnie officials were summoned to meetings in China and New York to explain the prepayments to irate investors. They threatened to stop purchasing Ginnie bonds, she said. Kasper declined to say how bad the ...

October 19, 2018 - Inside FHA/VA Lending

Ginnie Mae to Require Servicer, Credit Ratings for Largest Issuers

Participants in Ginnie Mae’s single-family mortgage-backed securities program may expect new policy changes, including servicer and credit ratings for the largest issuers, clarification of “appropriate sources of liquidity” and other financial requirements. The changes come as issuer liquidity continues to be a primary concern for Ginnie Mae, particularly with nonbanks now the dominant segment in the single-family MBS program. “We’re working on those policies right now,” said Leslie Meaux Pordzik, Ginnie’s acting senior vice president, Office of Issuer and Portfolio Management, at the Mortgage Bankers Association’s annual convention in Washington, DC, this week. Nonbanks account for nearly two-thirds of Ginnie MBS issuance and approximately 75 percent of FHA and VA lending. Nonbanks serviced a record 61.1 percent of outstanding Ginnie single-family MBS at the end of the ...

October 19, 2018 - Inside FHA/VA Lending

FHA, VA Delinquencies Tip Slightly Higher in 3Q18 GNMA MBS Pools

The amount of single-family Ginnie Mae mortgage servicing rights increased a modest 0.9 percent during the third quarter, according to a new analysis and ranking by Inside FHA/VA Lending. Some $1.858 trillion of Ginnie mortgage-backed securities were outstanding at the end of September, a 6.2 percent gain over the previous 12 months. Loans guaranteed by the VA continued to be the fastest growing segment of the Ginnie market. Volume was up 1.3 percent from the end of June, hitting $630.9 billion, an 11.0 percent increase from the same time last year. The FHA segment remained far bigger: $1.114 trillion at the end of the third quarter. However, its growth rate has been slower: 0.7 percent from June and 3.9 percent compared to September 2017. Loan performance deteriorated slightly in both programs. Some 92.9 percent of FHA loans were current at the end of September, down from ... [Charts]

October 19, 2018 - IMFnews

What We’re Hearing: One Last Criticism from Jeb Hensarling Regarding the FHFA / In Agreement on 80 Percent / Departing Fannie, Freddie Directors May Pose a Challenge / Two Major Concerns: Originations and Profit Margins / Plaza Home Wants AEs / Bill Ashmore’s New Job?

The FHFA IG says "a number" of director positions at Fannie and Freddie are set to expire: "Changes in leadership can lead to a lack of attention to internal controls..."

October 19, 2018 - Inside MBS & ABS

Fannie, Freddie CEOs Cite Benefits of Conservatorship Discuss What the Future Holds for the Mortgage Industry

The CEOs of Fannie Mae and Freddie Mac – one recently departed, the other soon to leave – told attendees at this week’s annual convention of the Mortgage Bankers Association that a number of good things came out of the 10-year conservatorship of the two government-sponsored enterprises.

October 19, 2018 - Inside MBS & ABS

Fannie and Freddie Just About Done Financing SFR Operators, But Review of the Pilot May Not Come Soon

Freddie Mac recently confirmed that it will provide indirect financing of $51.3 million to Reven Housing REIT, a publicly traded company that owns and manages 824 single-family rental units.

October 18, 2018 - Inside Mortgage Finance

Ginnie Mae Working on Stress Tests and May Tighten Capital Standards. Agency Boots Lender from Program

With loan production on the wane and profit margins thinning, warehouse lenders, financiers and even regulators are growing increasingly anxious about nonbank liquidity, a topic that received an airing at the annual convention of the Mortgage Bankers Association this week.

October 18, 2018 - Inside Mortgage Finance

Agency Mortgage-Servicing Market Grew Modestly in 3Q18 as Nonbanks Continue Amassing Market Share

The agency mortgage-servicing market continued to grow at a steady pace during the third quarter of 2018, fueled by strong purchase-mortgage originations, according to an exclusive ranking and analysis by Inside Mortgage Finance. [Includes two data charts.]

October 18, 2018 - IMFnews

Agency MSR Market Grew Modestly in 3Q18 as Nonbanks Continued Their March Forward

Fun fact: Nonbanks went over the 60.0 percent threshold in Ginnie Mae market share during the third quarter.

October 17, 2018 - IMFnews

Short Takes: What Will Ben Carson Cut? / GSE DTI Ratios Too High? / A Woman May Head the FHFA / Nomura Settles with DOJ / Strong Earnings from MGIC / Needed: Some CFPB Guidance

Budget cuts coming to HUD?

October 17, 2018 - IMFnews

Fannie Sells Three VA Buildings as it Preps for Office Consolidation

The Fannie Mae Virginia properties were sold for roughly $130 million…

October 16, 2018 - IMFnews

Short Takes: Trump’s Point Man on GSE Reform: Yank Fannie and Freddie’s Charters / New 52-Week Lows / Ginnie Issuer Gets its Ticket Pulled / Uncle Sam is Spending Too Much Money (Again) / A Name Change for Ocwen?

Meanwhile, there was chatter at the MBA convention that Ginnie Mae had just yanked the ticket of one of its MBS issuers.

October 15, 2018 - IMFnews

Short Takes: GSE Pilot Hearing Postponed / An Opportunity to Gather Intelligence? / Freddie's Qualification Tool for Self-Employed Borrowers / GSE Duty-to-Serve Updates / New Hires for ComplianceEase, Element Funding

The Senate Banking Committee's review of GSE pilot programs will have to wait...

October 15, 2018 - IMFnews

GSE Single-Family Business Up 10 Percent in 3Q18

Fannie enjoyed a 29.9 percent quarterly increase in purchase business, nearly double Freddie’s 15.4 percent gain.

October 15, 2018 - IMFnews

Incenter, Phoenix Capital Out with New MSR Auction Notices

IMA described the selling originator as an “independent mortgage banker with strong net worth...

October 15, 2018 - IMFnews

Correspondent Platforms Gain Share in 3Q18 Agency Market

The correspondent share of the market rose to 39.5 percent, the highest it has been in years...

October 12, 2018 - Inside The GSEs

GSE Briefs

Fannie Mae Gets Interim CEO. Fannie Mae announced this week that it has appointed Hugh Frater as interim chief executive officer. Frater's appointment will be effective on Oct. 16, 2018, subject to final approval from the Federal Housing Finance Agency.

October 12, 2018 - Inside The GSEs

FHFA Publishes 2019 Annual Performance Plan

The Federal Housing Finance Agency published its 2019 annual performance plan last week for overseeing the GSEs and Federal Home Loan Banks next year. The performance plan supports the FHFA’s long-range strategic plan, and includes goals, performance measures and targets, and strategies to accomplish those goals.

October 12, 2018 - Inside The GSEs

Fannie Sells Three VA Buildings in Prep for Office Consolidation

Fannie Mae recently sold its three Northern Virginia buildings as part of its plan to consolidate the 1.5 million square feet it has in office space in Virginia into one central hub. The buildings were sold to MRP Realty and Artemis Real Estate Partners. But Fannie will continue to occupy the buildings until its new 8,500 square foot headquarters at Reston Gateway, also in Virginia, is completed in 2022.

October 12, 2018 - Inside The GSEs

Freddie Mac Closes on LIHTC Fund for First Time in 10 Years

Freddie Mac closed on a low-income housing tax credit sale late last week after reentering the market for the first time in a decade. Up until the fourth quarter of last year, the GSEs haven’t been allowed to participate in the LIHTC market since they’ve been in conservatorship.

October 12, 2018 - Inside The GSEs

GSEs’ Latest Nonperforming Loan Sales Total $2.4 Billion

Fannie Mae and Freddie Mac both recently announced the winners of their latest nonperforming loan auctions, which included eight separate pools amounting to $2.4 billion. The largest sale was from Fannie and consisted of 10,300 loans totaling $1.88 billion divided among five pools, all won by MTGLQ Investors, a subsidiary of Goldman Sachs.

October 12, 2018 - Inside The GSEs

FHFA Requests Input on DTS Modifications from Fannie

Fannie Mae is looking to make about 22 changes to its duty-to-serve plan and the Federal Housing Finance Agency wants input on four of them. Both Fannie and Freddie Mac released their duty-to-serve underserved markets plans for 2018-2020 in December 2017. DTS is aimed at financing for low- and moderate-income families.

October 12, 2018 - Inside The GSEs

Freddie Expands Purchases to Community Land Trust Mortgages

Freddie Mac will begin purchasing community land trust mortgages next month to help support affordable housing efforts. Lenders have been reluctant to make loans on these shared equity homeownership programs because they considered them riskier and had to keep them in their portfolio.

October 12, 2018 - Inside The GSEs

Freddie Mac Behind $51.3 Million LOC to SFR Operator Reven

Reven Housing Funding, La Jolla, CA, has closed on a $51.3 million mortgage from Arbor Agency Lending, a Freddie Mac-approved seller/servicer, according to a recent 8-K filing with the Securities and Exchange Commission. Freddie, said one GSE official, is the takeout commitment behind the Arbor loan.

October 12, 2018 - Inside The GSEs

Upcoming FHFA Hearing to Focus on Oversight of GSE Pilots

Pilot programs implemented by Fannie Mae and Freddie Mac over recent years will be the focus of a Senate Banking, Housing and Urban Affairs Committee hearing next week. As complaints mount about the process in which a number of pilots were introduced and their threat to the primary market, the Senate decided to tackle the issue during the Oct. 18 “Oversight of Pilot Programs at Fannie Mae and Freddie Mac” hearing.

October 12, 2018 - Inside The GSEs

GSE Shareholders Win Will Allow Plaintiffs to Press Forward

A recent court ruling that affirmed the validity of claims that the GSE net worth sweep breached an implied covenant of good faith is a big deal for shareholders, according to the plaintiff’s attorney. David Thompson of Cooper and Kirk told Inside The GSEs this week that U.S. District Judge Royce Lamberth’s decision is a “significant victory” for the plaintiffs.

October 12, 2018 - Inside The GSEs

GSE 1-Family Business Up 10% in 3Q18 as Purchase Market Grows

Seasonal housing-market factors pushed GSE single-family mortgage business higher in the third quarter, according to a new Inside The GSEs analysis of mortgage-backed securities data. Fannie Mae and Freddie Mac issued $213.81 billion of single-family MBS in the third quarter, a 10.4 percent increase from the previous period. The gain came from a 23.4 percent surge in purchase-mortgage business, which offset a 15.5 percent downturn in GSE refi activity. [Includes two data charts.]

October 12, 2018 - IMFnews

What We’re Hearing: A Cyclical Business / What Will Treasury’s Craig Phillips Say about the GSEs? / Advice From loanDepot’s Anthony Hsieh / Unsolicited Resumes from Production Employees / Jim Malloy Departs Impac Mortgage After 15 Years / PennyMac’s First CRT Deal / A New Hire at Home Point

Anthony Hsieh's advice for the mortgage industry: Start selling...

October 12, 2018 - Inside MBS & ABS

Securitization of Mortgage Servicing Rights Helps Nonbanks; Freddie Urged to Join Fannie, Ginnie

The creation of securitization structures to finance mortgage servicing rights was the most significant development for nonbank mortgage lenders in the aftermath of the financial crisis, according to Vandy Fartaj, CEO at PennyMac Financial Services.

October 11, 2018 - Inside Mortgage Finance

Senate Banking Panel Hearing to Explore GSE Pilot Programs on Private MI, MSR Financing, SFR Sales

The Senate Banking, Housing and Urban Affairs Committee next week is expected to push officials from Fannie Mae, Freddie Mac and the Federal Housing Finance Agency on controversial pilot programs that have drawn the ire of certain industry factions.

October 11, 2018 - IMFnews

Invitation Homes Prepays Part of Loan from JPMorgan Chase

Next Thursday, the Senate Banking Committee will hold a hearing on GSE pilot programs…

October 11, 2018 - IMFnews

Roughly 26 Percent of Home Lenders are Using AI, Machine Learning

Use of artificial intelligence seems to be concentrated at nonbanks…

October 10, 2018 - IMFnews

Short Takes: Michael Bright, the Next FHFA Director? / Waiting on Senate Confirmation (Still) / A Former GSE Exec and The Play Set Scandal / Sears and Fairholme / HSBC Settles with DOJ / A New Hire at CMG Financial

HSBC will pay $765 million to settle charges brought by the Department of Justice...

October 10, 2018 - IMFnews

GSEs on Track to Start Issuing Single Security in June, Additional Guidance Pending…

Stephanie Miller of Fannie Mae said the GSEs are working with SIFMA on the transition to the single security.

October 9, 2018 - IMFnews

Short Takes: Castle & Cooke? / The Fannie Mae Connection / Frater, a Good Choice to Head Fannie / LendingHome Surpasses the $3B Mark in FnF Production / NDA Hires Clayton Executive

Fix-and-flip lender LendingHome, San Francisco, has surpassed the $3 billion market in originations...

October 9, 2018 - IMFnews

Fannie Names Former Berkshire Hathaway Executive Hugh Frater Interim CEO

The new interim CEO was an EVP at PNC Financial where he led the real estate division and was a founding partner and managing director of BlackRock...

October 8, 2018 - IMFnews

Fannie Names Former Berkshire Hathaway Executive Hugh Frater Interim CEO

Frater was also executive vice president at PNC Financial Services...

October 8, 2018 - IMFnews

Senate Banking Committee Hearing Likely to Touch on Freddie Mac MSR-Financing Pilot

In his report, KBW analyst Bose George said, “While Mel Watt, director of the FHFA, was questioned about some of these issues in past congressional hearings, this will be the first hearing to focus exclusively on this topic.”

October 5, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Issues Waiver of Property Inspections in Disaster-Stricken California Counties. FHA has issued a waiver of its timing policy for completing property inspections prior to closing or endorsing a loan for FHA insurance. The waiver is in effect in presidentially declared major disaster areas in Lake and Shasta Counties, CA, that were ravaged by wildfires and high winds. FHA believes that the wildfires and high winds have stabilized so as not to cause any further damage to properties, even though FEMA has not declared “all clear” in the affected areas. The waiver allows damage inspections to be completed after Oct. 2, for properties located in the PDMDA. NC Commissioner of Banks Amends State Reverse Mortgage Rules. The North Carolina Commissioner of Banks recently amended its ...

October 5, 2018 - Inside FHA/VA Lending

Senate Still Has Time to Enact VA ‘Orphan’ Loan Bill, Says MBA

The mortgage banking industry is optimistic about Congress enacting legislation that would cure VA orphan loans before the midterm elections. The U.S. Senate still has time to consider H.R. 6737, the Protect Affordable Mortgages for Veterans Act, according to Bill Kilmer, chief lobbyist at the Mortgage Bankers Association. “Most observers think [lawmakers are] going to be around until Oct. 18 or 19, which is when Senate Majority Leader Mitch McConnell said he wants to keep folks around to work on nominations and other measures they need to clear,” Kilmer said. “There is time and, more to the substantive point, the bill passed the House.” H.R. 6737 would provide a technical fix so that certain VA refinance loans would be eligible for pooling in a Ginnie Mae mortgage-backed security. The bill was reported out of committee by a unanimous 49-0 vote, and was approved quickly by the House ...

October 5, 2018 - Inside FHA/VA Lending

Solid Gains in Purchase-Mortgage Business Offset 3Q18 Refi Slump

Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]

October 5, 2018 - IMFnews

Senate Hearing Scheduled to Focus on GSE Pilot Programs Oversight

It appears that the Senate is ready to tackle industry complaints about Fannie Mae and Freddie Mac pilot programs. The Senate Banking Housing and Urban Affairs Committee announced this week that they will hold a hearing on Oct. 18 to discuss the oversight of pilot programs at the government-sponsored enterprises. …

October 5, 2018 - Inside MBS & ABS

Fannie Mae, Freddie Mac Shareholders Finally Get a Modest Win in Case Against Treasury Sweep

Fannie Mae and Freddie Mac shareholders received a bit of good news late last week when a judge sided with them on one of their arguments against the government.

October 5, 2018 - Inside MBS & ABS

GSEs on Track to Start Issuing Single Security in June, Additional Guidance Pending from SIFMA and IRS

Years of preparation for single security issuance by Fannie Mae and Freddie Mac appear to be paying off as officials involved in the effort suggest that the government-sponsored enterprises and industry participants appear ready for the transition.

October 5, 2018 - IMFnews

Warehouse Banks Ponder MSR Financing – But There’s Freddie Mac to Worry About

This executive, like many interviewed, called it an example of charter creep. Freddie and the FHFA think otherwise…

October 5, 2018 - IMFnews

Securitization Market Limped Through 3Q18 with Help From Agency MBS Issuance

The major driver was a 16.8 percent jump in Fannie Mae issuance…

October 4, 2018 - Inside Mortgage Finance

Need MSR Financing? Go See Freddie Mac – It Can Lend Up to $1 Billion and at a Deep Discount

As prospects wane in warehouse lending, some commercial banks are pondering a move into financing mortgage servicing rights but have a major concern: Freddie Mac, the government-controlled mortgage giant that’s in the midst of a $1 billion pilot program. During a recent Congressional oversight hearing, Federal Housing Finance Agency Director Mel Watt for the first time revealed the size of the MSR-financing pilot, saying it’s needed because nonbanks “do not have access to ...

October 4, 2018 - Inside Mortgage Finance

Refinance Market Continued to Slip in 3Q18, But Purchase Mortgages Lift Fannie/Freddie Business

Fannie Mae and Freddie Mac turned in a solid gain in single-family production during the third quarter of 2018, according to an exclusive ranking and analysis by Inside Mortgage Finance. The two government-sponsored enterprises issued $213.81 billion of new single-family mortgage-backed securities during the third quarter, a solid 10.4 percent increase from the previous three-month period. At $592.02 billion in production through the first nine months of ... [Includes three data charts]


Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.


The wholesale/table funder. They’re taking the financial risk.


The broker, but only for the first year. After that, the borrower is fair game.


Hard to answer. It’s a complicated issue.