Agency MBS

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

April 20, 2018 - Inside FHA/VA Lending

Ginnie Mae Mulls ‘A-Tier’ Issuer Rating to Raise Nonbank Liquidity

Ginnie Mae is considering a tiered rating system to ensure that all participants in its mortgage securities program have sufficient liquidity and capital to meet their counterparty obligations. The agency is still fleshing out the idea of an “A-tier” issuer, which would likely develop into a policy in the near future, said Michael Bright, executive vice president and chief operating officer, during a recent interview with Inside FHA/VA Lending. “An A-tier issuer would be [a company that] has gone above and beyond in helping put together for us a risk management and liquidity plan that does not rely on liquidity providers, and whose defect and cure rates are low,” he explained. Such issuer/servicers also would be well capitalized. Ginnie is developing the metrics for such a system, as well as incentives for the A-tier issuers, Bright said He added that top-rated firms would be eligible for “concierge services” from the ...

April 20, 2018 - Inside FHA/VA Lending

VA Share in Gov’t-Backed Servicing Continued to Grow in Early 2018

The Department of Veterans Affairs home-loan guaranty program continued to account for most of the growth in the Ginnie Mae servicing business during the first quarter of 2018, a new Inside FHA/VA Lending analysis reveals. Total Ginnie mortgage-backed securities outstanding rose to $1.940 trillion as of the end of March, including multifamily MBS and securities backed by FHA reverse mortgages. Some $1.795 trillion of that amount was traditional single-family mortgages, a 1.1 percent increase from the end of last year. The forward-mortgage Ginnie market grew by 7.3 percent over the past 12 months. The amount of VA loans in Ginnie pools was up 13.1 percent from March 2017, nearing the $600.0 billion mark. By comparison, the FHA segment of the Ginnie market was up 4.7 percent from a year ago, hitting $1.085 trillion. Loan performance generally improved in both the ... [Charts]

April 20, 2018 - Inside MBS & ABS

Stars May be Aligned for Strong Profits at Fannie And Freddie as GSEs Leave DTA Hits Behind

After booking large one-time charges from marking down the carrying value of their deferred tax assets in the fourth quarter, Fannie Mae and Freddie Mac likely will post strong earnings for the first quarter of 2018, according to an analysis by Inside MBS & ABS.

April 19, 2018 - Inside Mortgage Finance

Industry Groups Divided Over FHFA’s Proposed Options For Credit Scoring Strategies at Fannie and Freddie

The Consumer Federation of America agreed that the FICO score used by Fannie and Freddie is outdated and amounts to a monopoly on scoring. It supports the lender-choice option, but with constraints. The CFA recommended that lenders be required to pick a provider for a minimum period and said the models used by the two government-sponsored enterprises should align with one another.

April 19, 2018 - Inside Mortgage Finance

Nonbanks Gobble Up More of the Agency Servicing Market in Early 2018; Growth Spurts at Ginnie Mae

The steamship that is the nonbank share of the mortgage servicing market showed no signs of changing course in the early months of 2018, a new Inside Mortgage Finance analysis reveals. [Includes two charts.]

April 19, 2018 - IMFnews

Phoenix Selling a Large Bulk MSR Portfolio. Bid Deadline: May 1

All of the receivables were originated through the retail channel…

April 19, 2018 - IMFnews

FHFA Under Pressure to Act More Like a Bank Regulator with Fannie & Freddie

Republican congressmen generally agreed with the IG’s recommendations and raised additional concerns about mission creep at Fannie and Freddie…

April 19, 2018 - IMFnews

Nonbanks Continue to Gobble Up More of the Agency Servicing Market

Nonbank servicing of agency MBS has nearly doubled since March 2014…

April 18, 2018 - IMFnews

Short Takes: FHFA IG Issues Heavily Redacted Report on GSE Cybersecurity / Ditech Worries about Cybersecurity / IBM Says Nothing About Seterus (Again) / What’s in a Title? Off with Their Heads!

As a practice, IBM rarely says a word about Seterus...

April 18, 2018 - IMFnews

Strong 1Q Earnings for MGIC, but NIW Declines; Freddie’s IMAGIN Pilot Gets a Mention…

In 1Q18, MGIC wrote $10.6 billion of new MI policies compared to $12.8 billion in 4Q17 and $9.3 billion in the first quarter of last year.

April 17, 2018 - IMFnews

Short Takes: Bank of America Kisses Mortgage Banking (Reporting) Goodbye / When MSR Cash Flow Becomes ‘Immaterial’ / The Eye of the Beholder / Tossing Mortgage Stuff Overboard / Redwood on an MBS Hot Streak / Leaving loanDepot for Impac

Is Bank of America doing a slow fade on mortgages?

April 16, 2018 - IMFnews

Short Takes: Watt Looks Back / Will Trump Shock the Mortgage Industry and Give Him Another Term? / LenderLive Buys Vendor, More Deals in the Works? / A New Director for Freddie Mac

Watt’s term expires in early 2019. President Trump is not expected to nominate him to another term. Then again...

April 16, 2018 - IMFnews

Early 2018 Brings More Volatility to GSE Single-Family Rivalry

In early 2018 both GSEs were under orders from the Federal Housing Finance Agency to set g-fees that meet a “minimum return on equity…”

April 16, 2018 - IMFnews

Pershing Square Doubles Down on its GSE Bets

In the 2017 annual report, Pershing Square lists Fannie and Freddie common among its “losers…”

April 16, 2018 - IMFnews

Fannie Addresses Risk Layering in High DTI Loans

Back in July 2017, Fannie revised its automated underwriting system to accept loans with DTI ratios over 45 percent without lenders having to show other compensating factors…

April 13, 2018 - Inside The GSEs

GSE Roundup

Fannie Mae Announces New Board Member. Christopher Herbert was elected as a director on the company’s board of directors. The GSE noted that he has extensive experience relating to housing policy and urban development. He’s been managing director for Harvard University’s Joint Center for Housing Studies since January 2015. The Final Nail in the GSE Reform Coffin: Creation of the $3B Capital Buffer? Although GSE reform appears to be dead in the current Congress, Fitch Ratings issued a report Tuesday predicting that MBS guarantors created in the future to replace Fannie Mae and Freddie Mac will be on solid ground financially. As for why GSE reform failed, Fitch contends...

April 13, 2018 - Inside The GSEs

FHFA Proposes to Amend Regulations, Seeks Input

The Federal Housing Finance Agency is proposing to amend its regulations on the responsibility of the board, directors, corporate practices, and corporate governances for the GSEs and Federal Home Loan Banks. It also would apply the FHLB strategic business plans to Fannie and Freddie. This means that the GSEs’ boards would have a strategic business plan in effect at all times, which describes how the regulated entity will achieve its statutory purposes. Moreover, there’d be a provision that requires each GSE board to review the strategic plans annually, re-adopt it once every three years, at minimum, and...

April 13, 2018 - Inside The GSEs

Fannie Looks to Introduce New Features to Servicing Marketplace

The Servicing Marketplace launched last year by Fannie Mae has had a good response so far. It was created to connect servicers and sellers during transfers, and there are already talks of enhancements in the near future.The program was in a pilot phase for the bulk of 2017, officially kicking off in December. The GSE designed the platform to support co-issue transactions, bringing sellers and servicers together to deliver pricing certainty and transparency, as well as efficiency. Loans delivered under whole loan servicing-released commitments taken on or after Dec. 4, 2017, are bifurcated if sellers participate in Fannie’s servicing execution tool or the servicing marketplace.

April 13, 2018 - Inside The GSEs

Fannie Mae Updates DU After Surge in High-DTI Loans

Fannie Mae last month implemented changes to its Desktop Underwriter program following a surge in acquisition mortgages with high debt-to-income ratios that caused an uproar with some private mortgage insurers. In July 2017, the GSE revised its underwriting guidelines to accept DTI ratios over 45 percent without requiring lenders to show compensating factors. As previously reported by Inside The GSEs, the change led to a surge in high-DTI activity in the second half of 2017. Fannie Mae and Freddie Mac securitized $52.90 billion of mortgages with DTI ratios ranging from 46 percent to 50 percent, a 72.6 percent increase from the first six months of the year.

April 13, 2018 - Inside The GSEs

FHFA OIG Issues Heavily Redacted Report on GSE Cybersecurity

The Federal Housing Finance Agency Office of Inspector General said the FHFA did not make sure that Freddie Mac’s plans to address cybersecurity deficiencies were sufficient. Instead, the agency questionably closed the matter requiring attention (MRA) after deciding on its own that the GSE had completed its planned remedial actions.This raised a red flag with the OIG, which said when an MRA is issued, the FHFA requires the GSE to provide a remedial plan that includes specific milestones that take into consideration the complexity of the issue and the urgency regarding the correction.

April 13, 2018 - Inside The GSEs

GSE Names Latest Reperforming Loan Sale Winning Bidders

NRZ Mortgage Holdings and Towd Point are the winning bidders of Fannie Mae’s sixth reperforming loan transaction and first for 2018. The GSE announced the winners this week. The loans were divided into two pools. NRZ, a subsidiary of Fortress and the nation’s fifth largest residential servicer according to numbers from Inside Mortgage Finance, won the first pool. It consisted of 3,015 loans with a UPB of $686 million and average loan size of $226,659. NRZ’s investment estimate is between $200 to $250 million, according to an analysis by Keefe, Bruyette and Woods analyst George Bose.

April 13, 2018 - Inside The GSEs

Fannie Clarifies How Lenders Can Help with Home Purchase Costs

Fannie Mae recently clarified its seller guidelines on gifts from lenders to borrowers. Last week, the GSE noted that lenders can indeed contribute to certain borrowers’ home-purchase costs, but just not to their downpayments. The GSE explained that lenders can contribute funds to help defray closing costs and prepaid fees that are normally delegated to the buyer as long as it is not used to fund any portion of the downpayment. The contribution also must be a true gift as it can’t be subject to repayment requirements or require any financial obligation apart from the mortgage. Nor can the contribution come from a third party.

April 13, 2018 - Inside The GSEs

Alt Credit Score Comments Close With Mixed Views from Industry

The Federal Housing Finance Agency will have its hands full reviewing more than 100 comments related to deciding whether the GSEs should use alternative credit scoring methods. The comment period closed on March 30, and the agency received about a quarter of the replies on the last day. Everyone from industry trade groups and corporations to lenders and lawmakers offered input on whether to allow lenders to use alternatives to the omnipresent FICO credit score. In a request for input issued in December, the agency outlined four potential approaches, including an updated version of FICO, VantageScore 3.0, offered by VantageScore Solutions, or a hybrid of several scoring mechanisms.

April 13, 2018 - Inside The GSEs

Analysts Say UMBS May be Next Step in GSE Reform

The latest update on the single security may signify the next step in GSE reform, according to analysts with Wells Fargo Securities. In late March, the Federal Housing Finance Agency announced that the uniform mortgage-backed security collateralized by Fannie Mae and Freddie Mac loans will launch on June 3, 2019. The framework for housing-finance reform has evolved over time to building on the successful elements of the current market instead of disrupting it, said analysts Vipul Jain, Anish Lohokare and Randy Ahlgren. They noted that the single security seems to be leading toward a single MBS label with catastrophic insurance underwritten explicitly by the government.

April 13, 2018 - Inside The GSEs

Fannie’s New Headquarters Continues to Prompt Questions

Fannie Mae’s new headquarters in downtown Washington, DC, continues to be a bone of contention for some, but the GSE said the project is on schedule and expects it to be completed by November 2018. So far, about 20 percent of Fannie’s Washington workforce has relocated and more are planned as additional floors are finished. During a House Financial Services Oversight and Investigations subcommittee hearing this week, lawmakers inquired about the building’s costs. Federal Housing Finance Agency Inspector General Laura Wertheimer criticized the regulator’s monitoring of the build outs. Wertheimer said the initial investigation of the headquarters stemmed from a...

April 13, 2018 - Inside The GSEs

House Hearing Reveals Flaws in FHFA Oversight of Fannie, Freddie

The Federal Housing Finance Agency’s supervision and guidance of the GSEs lacks the rigor shown by other federal financial regulators, according to the FHFA’s inspector general, Laura Wertheimer. She testified during a House Financial Services subcommittee hearing this week focusing on the oversight of Fannie Mae and Freddie Mac. Throughout the hearing, Wertheimer and lawmakers pointed to a number of supervisory concerns and questioned the FHFA’s standards when it comes to monitoring the mortgage giants. “The flexible and less prescriptive nature of many FHFA standards and much of its guidance has resulted in inconsistent supervisory practices,” she said.

April 13, 2018 - Inside The GSEs

Early 2018 Brings More Volatility To GSE Single-Family Rivalry

Fannie Mae and Freddie Mac had wildly different experiences in the first quarter of 2018, a period when both firms saw declining single-family business volume. But Freddie’s production of single-family mortgage-backed securities plummeted 29.2 percent from the fourth quarter of 2017, while Fannie’s 5.7 percent decline was roughly one fifth as severe. Those cross-currents upended the playing field, giving Fannie a hefty ... [Includes two data charts.]

April 13, 2018 - Inside MBS & ABS

IG, Lawmakers Point to Many GSE Supervisory Concerns During FHFA Oversight Hearing

The inspector general of the Federal Housing Finance Agency voiced concerns about the agency’s supervision of Fannie Mae and Freddie Mac, while lawmakers questioned why new products like the Integrated Mortgage Insurance (IMAGIN) credit risk-transfer program were implemented without going through the proper channels.

April 13, 2018 - Inside MBS & ABS

SIFMA Gives TBA Greenlight to GSE Plan To Issue CRT Debt in REMIC Structures

Fannie Mae and Freddie Mac cleared another hurdle in their efforts to expand the investor base for their mainstay credit-risk transfer programs when a leading Wall Street group said it saw no problems with a plan to structure future CRT issues as real estate mortgage investment conduits.

April 12, 2018 - IMFnews

Short Takes: A 10 Percent Cut in GSE Loan Limits? (Just a Thought) / Mulvaney Has Saved the CFPB $16 Million / New Rez Buys RPL Pool from Fannie / Directors for New Rez Earn How Much? / NYS Fines Nationstar (aka Mr. Cooper)

With GSE reform all but dead, rumors about possible administrative changes abound...

April 12, 2018 - Inside Mortgage Finance

Fannie Mae Addresses Risk Layering in High-DTI Loans; Analysts Say More Transparency Would Help

Fannie Mae last month tweaked its underwriting system to account for the greater risk in loans with high debt-to-income ratios.

April 12, 2018 - IMFnews

House Hearing Questions FHFA’s Oversight of Fannie, Freddie. IMAGIN?

Wertheimer testified that during her tenure, the FHFA-OIG has issued 85 reports and made 117 recommendations to address supervisory shortcomings.

April 12, 2018 - IMFnews

Private MI Loan Volume Down Sharply in 1Q18

The upside for private MIs is that their purchase business started off 2018 at a more robust level than last year…

April 11, 2018 - IMFnews

Short Takes: Rep. Waters Doesn’t Hold Back on Criticism of Mulvaney / Next Up: Sen. Warren (CFPB Founder) / When Bank LOs Make More than Their CEOs / G-Rate Steps Up LO Recruitment / Worrying About GSE Servicing Comp (Still)

According to the consulting firm of Garrett, McAuley & Co., some mortgage loan officers at depositories earn at least four-times what their CEOs make...

April 11, 2018 - IMFnews

The Final Nail in the GSE Reform Coffin: Creation of the $3B Capital Buffer?

Fitch said the $3 billion reserve should be sufficient to cover income volatility during “the normal course of business, as seen when interest-rate volatility results in valuation adjustments within the GSEs’ derivative portfolios.”

April 10, 2018 - IMFnews

MountainView Selling $6B-Plus of Bulk Servicing Rights

The bulk portfolio has ultra-low delinquencies…

April 9, 2018 - IMFnews

Phoenix Capital Selling Fannie/Freddie/Ginnie Bulk MSRs

The conventional portion is top heavy with New York loans…

April 9, 2018 - IMFnews

MBS Trading Volume on the Rise in Early 2018

Demand for agency product remains strong, but the investor base is beginning to shift somewhat, said MBS Highway Principal Barry Habib...

April 6, 2018 - Inside FHA/VA Lending

GNMA Chief Confident Agency Will Win Back Investors’ Faith, Trust

Ginnie Mae’s anti-churning efforts have narrowed the spread between Ginnie and Fannie Mae mortgage-backed securities, prompting executives to say things are almost back to normal. In an interview with Inside FHA/VA Lending this week, Michael Bright, executive vice president and chief operating officer at Ginnie Mae, said the market and investors have responded positively to the agency’s efforts to resolve the churning and prepayment problems. “The Ginnie spread has fallen almost half a point and our securities have become more liquid,” he said. “We want to make sure we’re giving investors CPRs (constant prepayment rates) that they can model.” Bright said he cares less about the overall level of prepayment speeds. What he truly cares about is ensuring that when an investor purchases a Ginnie security, the prepay speed is correlated to changes in the interest rates and not the ...

April 6, 2018 - Inside FHA/VA Lending

Issuers Punished for Churning, Barred from Multi-Issuer Pools

Ginnie Mae this week meted penalties to two of the nine issuers that received warnings from the agency for excessive refinancings of VA mortgages. Bloomberg reported that Ginnie barred NewDay Financial’s and Nations Lending’s from the more lucrative multi-issuer mortgage-backed securities pools, forcing them to issue custom pools. The restrictions became effective immediately. The agency’s action could reduce mortgage interest rates by 50 basis points for FHA and VA loans, which would benefit first-time homebuyers, said Jaret Seiberg, an analyst with Cowen Washington Research Group. On the other hand, the issuers Ginnie limited to issuing custom pools will end up making loans with higher rates, the analyst noted. Ginnie’s action is part of a joint effort with the Department of Veterans Affairs to crack down on loan churning and faster prepayments of VA loans pooled in Ginnie securities. Loan churning ...

April 6, 2018 - Inside FHA/VA Lending

Ginnie MBS Production Tumbled To Three-Year Low in Early 2018

Issuance of new single-family Ginnie Mae mortgage-backed securities fell sharply in the first quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. The agency issued $92.58 billion in MBS backed by forward mortgages during the first three months of 2018. That was down 14.8 percent from the previous three-month period and represented the lowest quarterly total since early 2015. The 1Q figure is based on truncated loan amounts reported in Ginnie’s loan-level MBS disclosures. Reports with unrounded single-family loan amounts show a total of $95.75 billion in first-quarter MBS issuance, including FHA reverse mortgages. The loan-level data reveal that production fell 6.9 percent from February to March, when just $28.21 billion of Ginnie single-family securities were issued. That was the lowest monthly volume since February 2015. Both the FHA and VA programs saw significant ... [Charts]

April 6, 2018 - IMFnews

What We’re Hearing: Show Us the Money / A $1 Million Signing Bonus for an LO? / A Conservative, but Liberal on Pay Raises / Hensarling’s Next Job Won’t Be… / When the Chinese Worry About Prepayments / The Return of Jon Daurio?

One word for crazy signing bonuses paid to LOs: stupid...

April 6, 2018 - IMFnews

Fannie’s ‘Servicing Marketplace’ Off to a Strong Start

Fannie has roughly 50 lenders using the servicing marketplace…

April 6, 2018 - Inside MBS & ABS

MBS Trading Volume on the Rise Early in 2018, But Ginnie Prepay Concerns Linger

As rates continued to rise early this year, the average daily trading volume in agency MBS topped $239.2 billion in February, the best showing in at least 14 months, according to figures compiled by the Securities Industry and Financial Markets Association.

April 6, 2018 - Inside MBS & ABS

Acting Ginnie Mae Chief Michael Bright Worries About Liquidity as Nonbanks Still Dominate Sector

Ginnie Mae has no plans to reduce the number of issuers it oversees or raise capital standards for servicers, but in an interview with Inside MBS & ABS this week, Executive Vice President Michael Bright made it clear he’s worried about liquidity – a lot.

April 6, 2018 - IMFnews

MorVest Selling Almost $2 Billion of Fannie/Freddie Servicing Rights

MorVest CEO David Fleig said publicly announced bulk auctions have been scarce of late, but he expects that to change…

April 6, 2018 - IMFnews

All Three Agencies Had a Trying First Quarter: MBS Issuance Down Almost 18 Percent

But Freddie Mac’s 37.2 percent drop was the biggest, by far…

April 5, 2018 - Inside Mortgage Finance

Fannie Mae’s Servicing Marketplace Off To a Good Start, More Features to Come

Fannie Mae’s Servicing Marketplace has been up and running since December and the government-sponsored enterprise plans to add additional features later this year.

April 5, 2018 - IMFnews

As Pershing Square’s GSE ‘Bet’ Craters, Reports Surface that Investors are Pulling Money Out

Pershing Square owns roughly 9.9 percent of Fannie/Freddie common…

April 4, 2018 - IMFnews

FHFA Wants Input on Potentially Burdensome or Duplicative Regulations

The FHFA’s Office of General Counsel will review all of the comments and report findings...


What’s your opinion on how Mick Mulvaney has managed the CFPB since he took over three months ago?

He’s done a good job of paring back the agency’s excesses and we’d like to see more.


I hope he totally dismantles the agency and sends those functions back to the agencies hence they came.


Not bad, but he needs to take his time making additional changes.


We’re totally aghast. He’s gone way too far in protecting the rights of companies not consumers!