Agency MBS

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

June 15, 2018 - Inside FHA/VA Lending

USDA Securitization Fell in 1Q18, PennyMac Grabs Market Lead

Issuance of mortgage securities backed by USDA loans dropped during the first three months of 2018. Approximately $4.03 billion of rural housing loans with a USDA guarantee were delivered in Ginnie Mae MBS during the first quarter, down 18.3 percent from the previous quarter. Agency data also showed an 11.7 percent decline in USDA securitization volume from the same period a year ago. Rural housing loans accounted for 1.5 percent of all loans securitized in Fannie Mae, Freddie Mac and Ginnie Mae pools and 2.8 percent of loans with private or government-backed mortgage insurance. Purchase loans comprised the bulk of USDA loans that were delivered into Ginnie MBS pools. PennyMac knocked Freedom Mortgage out of first place with a total of $753.3 million in securitized USDA loans despite a 10.4 percent decline in production. Freedom Mortgage accounted for $523.3 million of USDA loans pooled in ... [Charts]

June 15, 2018 - Inside FHA/VA Lending

HECM Originations Rise in 1Q18, Draw Cut Slows HMBS Issuance

Reverse mortgage lenders started out strong in the first three month of 2018 with a 19.2 percent increase in Home Equity Conversion Mortgage production from the previous period. HECM endorsements totaled $5.4 billion in the first quarter, with purchase reverse loans accounting for the bulk of originations, 81.9 percent. First quarter production was up 18.5 percent from the same period last year. Meanwhile, HECM mortgage-backed securities issuance totaled $2.97 billion for the quarter, down from $3.25 billion in the prior quarter, Ginnie Mae data showed. The top five HECM originators in sequential order – American Advisors Group, Reverse Mortgage Funding, One Reverse Mortgage, Liberty Home Equity Solutions, and Synergy One Lending – accounted for $1.66 billion, or 30.8 percent, of total production during the first quarter. American Advisors maintained its top ranking with $841.4 million of HECM loans, which ... [Charts]

June 15, 2018 - Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...

June 15, 2018 - IMFnews

What We’re Hearing: There Goes the GSE Footprint / MBA Chief Tackles GSE Stock Speculators / Underwater: Pershing Square / Fannie-Freddie Charter Creep or are They Just Helping the Little Guy? / New Hires for TCF

It’s official: The Treasury Department’s goal is to reduce the footprint of Fannie Mae and Freddie Mac. Who says so? Treasury counselor Craig Phillips...

June 15, 2018 - IMFnews

MBS Outstanding on a Steady Growth Track. Ginnie MBS Balance: $1.83 Trillion

Year over year, MBS outstanding grew by 4.8 percent, according to a new tally from Inside MBS & ABS…

June 15, 2018 - IMFnews

MountainView Offers Fannie/Freddie MSR Portfolio

The average loan size of the package is $224,106…

June 15, 2018 - Inside MBS & ABS

FHFA Proposes Capital Regime for Fannie and Freddie Based on Framework the GSEs Are Now Running On

The Federal Housing Finance Agency this week unveiled a proposed rule on capital standards for Fannie Mae and Freddie Mac, acknowledging that the rule would not be imposed on the two government-sponsored enterprises as long as they’re in conservatorship.

June 14, 2018 - IMFnews

Short Takes: FHFA Ignoring HERA? / A Refresher Course / How Fannie and Freddie Dismantled Legislative Bomb Threats / A Large RPL Auction from Fannie / OCC to Finally Weigh In on Fintech

It might be said that OFHEO was a weak federal regulator...

June 14, 2018 - IMFnews

MSR Market Heats Up, New Auctions from Phoenix, MIAC

Bank buyers of MSRs favor packages that are at least $2 billion in size…

June 14, 2018 - IMFnews

Jumbo Mortgage Production Down Sharply in First Quarter

Wells Fargo ranked first among non-agency jumbo originators, followed by Chase and Bank of America…

June 13, 2018 - IMFnews

MBS Business Up Modestly, but GSE Credit Box Unchanged

In the first quarter, average credit scores on purchase mortgages were virtually unchanged…

June 12, 2018 - IMFnews

Short Takes: No Relief in Sight for GSE Common / Pershing Square in a World of (GSE) Hurt? / JMP Likes Impac / Consumer Data Collection Returns to the CFPB / Plaza Home Promotes Fontaine

JMP likes the higher profit margins that accompany non-QM lending…

June 12, 2018 - IMFnews

FHFA Proposes Minimum Capital Requirements for Fannie and Freddie. An RBC ‘Bill’ of $181 Billion

By comparison, commercial banks must have tier 1 capital of 8.0 percent of risk-weighted assets.

June 12, 2018 - IMFnews

Lenders Pessimistic About Profit Margins for 3Q18, Cuts to Staff Expected

Fannie Mae: “We expect this will prompt businesses to turn to cost-cutting..."

June 11, 2018 - IMFnews

Short Takes: Celebrity Wants to be a Player in Mortgage M&A / Commercial Bank Seeks Mortgage Company / Garrett on LO Pay / Genworth Sale Clears a Hurdle / Wells Fargo LO Bolts for Nonbank

Consultant Joe Garrett: "Salesmen don’t get paid less just because the company didn’t do well..."

June 11, 2018 - IMFnews

Cardinal Financial/Sebonic in Talks With Peoples Home Equity?

Earlier in the decade, Sebonic was started by former employees of RoundPoint Financial...

June 11, 2018 - IMFnews

American Action Forum: Merge the GSEs into HUD. (You Heard that Right)

The AAF warns against the GSEs becoming private entities again, noting there’s no way for them to raise enough capital…

June 8, 2018 - Inside The GSEs

GSE Briefs

Brookings Encourages Fannie to Expand CRT Market. The Brookings Institute applauds Fannie Mae’s credit-risk transfer program in a paper published this week, but said the GSE should increase the amount of credit it transfers to investors. The think tank also noted that guaranty fees that Fannie mortgage originators chose should be based on the implied g-fee paid to investors. Moreover, Brookings said that Fannie should continue to examine how much risk they should transfer using the Connecticut Avenue Structure program and look at past losses during times of stress. Freddie Prices Largest STACR SPI Deal to Date. Freddie Mac had its second Structured Agency Credit Risk - Securitized Participation Interests (STACR SPI) deal of the year. The $263.5 million STACR 2018 and SPI2 securities are backed by participation...

June 8, 2018 - Inside The GSEs

FHFA Capital Rule Proposal Not a Recap Plan, Will Seek Input

The Federal Housing Finance Agency plans to propose a new risk-based capital rule for the GSEs based on current operations to replace the old Office of Federal Housing Enterprise Oversight capital regulation. But just like the OFHEO rules, the proposed ones will be suspended as long as Fannie Mae and Freddie Mac are in conservatorship. Having a capital framework is useful when it comes to evaluating business decisions, according to FHFA Director Mel Watt. But he was quick to emphasize that the proposal is not based on some grand scheme to promote recapitalizing the GSEs. In fact, it’s largely an exercise that Watt said is...

June 8, 2018 - Inside The GSEs

Fannie Mae Warns Lenders of Fraudulent CA Companies

Fannie Mae recently warned lenders to be wary of misrepresentations of borrower employment on loan applications. In a fraud alert issued last week, the GSE published a list of 34 companies that were named on applications as the borrower’s place of employment. The problem came to light when Fannie was not able to confirm that any of the 34 companies located in Southern California actually existed.The GSE said a couple of red flags that drew attention to the issue were that the applications were third-party originator and broker loans. Moreover, Fannie said the borrowers’ occupation often didn’t sensibly coincide with the named borrower’s profile, including their age and experience.

June 8, 2018 - Inside The GSEs

GSEs Evolving to Cater to Gig Economy Borrowers

Fannie Mae and Freddie Mac are taking note of the growing number of borrowers earning extra income outside of the traditional weekday, 9-to-5 job and look to make mortgage underwriting more accommodating to this demographic.The gig economy is made up of consumers providing on-demand services such as driving for Uber or Lyft, renting rooms in their homes via Airbnb type outlets, and providing personal services such as handyman tasks or deliveries. A recent survey by Fannie showed that 71 percent of lenders reported having had borrowers with gig employment income apply for a mortgage over the past year and about 89 percent expect this trend to grow over the next few years.

June 8, 2018 - Inside The GSEs

Investigations Open into Price Manipulation by GSE Bond Traders

Some banks may be manipulating prices in Fannie Mae and Freddie Mac unsecured debt, according to several investigations launched late last week.The Department of Justice has reportedly opened a criminal investigation while the law firm of Hagens Berman is investigating the potential fraud.They suspect that traders from several banks have engaged in a coordinated attempt to manipulate pricing. Hagens Berman attorneys encourage investors and whistleblowers to report any information about potential antitrust violations and other fraud in the bond trading market to a tip line they recently established. This type of fraud has a large impact on market participants, according to Steve Berman, managing partner of Hagens Berman.

June 8, 2018 - Inside The GSEs

Think Tank Suggests Merge Fannie Mae and Freddie Mac into HUD

There are benefits to merging Fannie Mae and Freddie Mac with the Department of Housing and Urban Development, according to one conservative think tank opining on the future of the GSEs. The American Action Forum said because the government-sponsored enterprises are being funded in part by taxpayers, and treated as being on the federal budget, the goal should be to align policy with the budget. “This raises an intriguing possibility. Merge Fannie and Freddie into the Department of Housing and Urban Development,” said Douglas Holtz-Eakin president of the AAF and a former director of the Congressional Budget Office in the early 2000’s.

June 8, 2018 - Inside The GSEs

MBS Business Up Modestly in May But Little Change in Credit Box

A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]

June 8, 2018 - IMFnews

Don’t Worry, Nothing Will Derail the GSE Single-Security Project

Treasury counselor Craig Phillips advised meeting participants to assure their bosses and government affairs offices that Treasury is fully committed to the project. “If you have problems, tell them to call me,” he quipped.

June 8, 2018 - IMFnews

On the Rise Again: Agency Single-Family MBS Issuance

All three agencies saw gains from April volume with Fannie posting the biggest increase…

June 8, 2018 - Inside MBS & ABS

Potential Pricing Manipulation in Trading Of Fannie and Freddie Corporate Bonds

An investigation was launched last week into whether banks have been manipulating the prices in the government-sponsored enterprises’ unsecured debt.

June 7, 2018 - Inside Mortgage Finance

CFPB, Freddie Mac Separately Urge Potential Mortgage Borrowers to Shop Around When Considering a Lender

The Consumer Financial Protection Bureau and Freddie Mac released separate reports in May suggesting that potential borrowers should talk to multiple lenders when seeking a mortgage. The organizations noted that a significant share of borrowers are missing out on thousands of dollars in savings by neglecting to consider offerings from a variety of lenders.

June 7, 2018 - Inside Mortgage Finance

Don’t Look Now but Ginnie Mae Servicing Prices are the Best They’ve Been All Decade

For years, values on Ginnie Mae mortgage servicing rights have lagged behind the prices paid for Fannie Mae and Freddie product, but finally it appears the government market is catching up.

June 6, 2018 - IMFnews

Short Takes: Hey, Hands Off of GSE Multifamily / What Ed DeMarco Wanted To Do / Cuts at Stearns? / More Non-QM Lenders Target Self-Employed Borrowers / New Hires at Promontory MortgagePath

Over the years it seems as though commercial banks have basically ceded the multifamily market to nonbanks that use the GSEs as their secondary market takeout…

June 5, 2018 - IMFnews

Short Takes: Angel Oak Buys Stake in Commercial MB / Questions Being Asked about Trading in GSE Corporate Bonds / Texas Mortgage Shop Closes? / A New Hire for Pavaso

Another mortgage company has closed. This one in Texas...

June 5, 2018 - IMFnews

MBA Wants FHFA to be More Transparent on New GSE Activities

MBA: “An important recent example is the use of a single vendor for various aspects of a major enterprise technology project, thereby forcing many lenders to choose whether to retain their existing vendors or switch to the lone ‘approved’ vendor.”

June 4, 2018 - IMFnews

Incenter Auctioning Off Corporate Mortgage Shell of SoCal Lender

The corporate shell includes 27 state licenses…

June 1, 2018 - Inside FHA/VA Lending

California, Florida, Texas Lead in Deliveries to Securitization Pools

California continued to lead all states in FHA and VA mortgage securitization in the first three months of 2018. The Golden State accounted for 15.3 percent of the $50.6 billion of FHA loans delivered into Ginnie Mae mortgage-backed securities in the first quarter. FHA loans comprised 18.2 percent of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae, and 34.6 percent of agency-securitized loans with primary mortgage insurance. About 66.6 percent of FHA loans securitized during the period were for purchase mortgages while refinance loans accounted for 27.5 percent. The average loan-to-value ratio of FHA loans in Ginnie pools was 93.0 percent. The average credit score of 668.2 reflected FHA’s traditional base of lower-income and first-time homebuyers, with an average debt-to-income ratio of 42.4 percent. The other states among the top five in terms of FHA deliveries into Ginnie pools were ... [Chart]

June 1, 2018 - Inside FHA/VA Lending

Government Agencies Plan Big Technology Investment

Officials at the government’s mortgage programs said that major investments in technology will make their programs more efficient and pay for themselves, during a panel session at the Mortgage Bankers Association secondary market conference last week in New York. Michelle Corridon, deputy director in the single-family housing guaranteed loan division of the U.S. Department of Agriculture, said her program’s focus now is on infrastructure and innovation. The USDA is instituting a technology fee on every closed loan starting in October, she said. The enhanced online system will include new screens for housing, which now shares a landing page with other rural programs. When it’s complete, the new system will handle the process from guaranty commitment through loan delivery. In another efficiency move, rural housing is “rolling up” processing chores to fewer offices so it doesn’t have ...

June 1, 2018 - Inside FHA/VA Lending

S. 2155 Provides Protections to VA Borrowers; VA Issues Guidance

Provisions to protect VA borrowers from abusive lending are now in effect after President Trump signed into law a broad regulatory relief package last week. The VA measures are part of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which the U.S. Senate passed on March 14 and the House approved on May 22. The bipartisan measures became effective for VA loan applications taken on or after May 25, 2018. They were part of the bipartisan Protecting Veterans from Predatory Lending Act, which Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, introduced in January and later incorporated in S. 2155. The bill was designed to protect VA borrowers from loan churning or serial refinancing and specifically targeted the VA’s Interest Rate Reduction Refinance Loan program, where the churned VA loans ended up. According to the agency, such practices not ...

June 1, 2018 - Inside FHA/VA Lending

Regulatory Relief Law Unexpectedly Disrupts Ginnie Mae MBS Market

Ginnie Mae this week warned that VA refinance loans, particularly Interest Rate Reduction Refinance Loans, may not be included in any new pool or loan package if they do not comply with the newly enacted law protecting VA borrowers from predatory lending. The agency announced new pooling guidance pursuant to the loan-seasoning provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law last week (See details of the new law below ). The changes affect issuances of Ginnie mortgage-backed securities on or after June 1, 2018, but do not affect MBS issued before that date, according to the guidance. However, lenders seeking a guarantee after June 1 may have to recalibrate their loan-origination platforms to exclude refis that do not meet the new law’s seasoning requirements, said the Structured Finance Industry Group. The ...

June 1, 2018 - IMFnews

What We’re Hearing: Making Lemons out of Lemonade / Mortgage Brokers Trim Staff / A RIF at Movement Mortgage / The FHFA-OCC Connection / Conventional Lenders Eyeing the Non-QM Market? / A Tech Firm Looked at NSM

Although some conventional lenders are struggling with lower volumes, Angel Oak and Citadel Servicing Corp. are humming along...

June 1, 2018 - IMFnews

The GSEs in Conservatorship: Sure Doesn’t Seem Like It

“We’re partnering with external firms to understand and anticipate their needs,” said Freddie Mac official Kevin Palmer…

June 1, 2018 - IMFnews

MountainView Selling $3.6 Billion Fannie Mae MSR Portfolio

The seller of the portfolio, who was not identified, wants to complete the transaction by July 31.

June 1, 2018 - IMFnews

Fannie/Freddie Credit-Risk Transfer Machines Keeping Churning Out New Deals…

The surge in CRT debt issuance came during a time when new MBS production for the GSEs sank by 19.3 percent.

June 1, 2018 - Inside MBS & ABS

FHFA to Propose New Fannie Mae, Freddie Mac Capital Rules for Decision-Making, Transparency Purposes

In what is largely an intellectual exercise, Federal Housing Finance Agency Director Mel Watt said last week that the agency will propose a new risk-based capital rule for Fannie Mae and Freddie Mac even though it won’t apply while they’re in conservatorship.

June 1, 2018 - Inside MBS & ABS

Ginnie Likes Dodd-Frank Reform Bill Signed by Trump, but Some Suggest Tweaks Are Needed

The tailored Dodd-Frank reform bill signed into law by President Trump this month should be a boon to investors in Ginnie Mae securities because it will reduce loan churning, but there could be some bumps along the road until all the details are ironed out.

June 1, 2018 - Inside MBS & ABS

GSEs Continue Planning for the Future, Designing New Products and Business Processes for the Market

Fannie Mae and Freddie Mac don’t act like two companies in their 10th year of government conservatorship, waiting for federal policymakers to figure out what to do with them.

June 1, 2018 - Inside MBS & ABS

Fannie Mae and Freddie Mac Credit-Risk Transfer Machines Keep Churning Out New Deals Despite Market Slowdown

Fannie Mae and Freddie Mac issued a record $4.53 billion of new credit-risk transfer debt notes during the first quarter of 2018, according to an Inside MBS & ABS analysis. [Includes one data chart.]

May 31, 2018 - IMFnews

Short Takes: Mel Watt’s Successor May Be… / Morgan Stanley had a Role in the FAMC Deal / Consolidation Nation? / A New MBS from Redwood / New Hires for Home Point

The consolidation tidal wave approaches ... or maybe not...

May 31, 2018 - IMFnews

First-Time Buyer Share of Purchase-Mortgage Market Up in Early 2018

First-time buyers continue to fight the challenges of rising house prices, higher interest rates and depleted inventory…

May 30, 2018 - IMFnews

The Beat Goes On: GSE Credit Scores Much Higher Than on Ginnie Product

During the first quarter, the average credit score at Fannie Mae was 741.15, slightly below the average 744.73 at Freddie Mac.

May 28, 2018 - Inside the CFPB

QM Rule Assessment Likely to Address GSE ‘Patch,’ Attorneys Say

The regulatory relief bill which last week became law makes changes to the CFPB’s ability-to-repay rule, and attorneys expect that more major changes will come from the bureau’s reassessment of the qualified-mortgage standards. The Economic Growth, Regulatory Relief, and Consumer Protection Act will allow financial institutions with less than $10 billion in assets to offer mortgages that don’t meet all the requirements of the QM rule, such as ...

May 29, 2018 - IMFnews

Short Takes: All FHFA Wants is Parity / GAO Favors It / Suddenly, Bonds Rally (Credit the Italians) / MIAC Selling S&Ds / New Hires for These Mortgage Vendors

The FHFA argues: "In contrast, other federal safety and soundness regulators have statutory authority to examine companies that provide services to depository institutions..."


On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.


51 to 100 basis points.


101 to 150 basis points.


North of 151 basis points. (We expect a lot.)


We pay salary, not commission.