Freddie Mac

Browse articles from all of our Newsletters related to Freddie Mac.

February 22, 2018 - IMFnews

PIMCO Suggests Leaving Fannie and Freddie in Conservatorship

PIMCO also believes government MBS loan limits should be based on borrower income, not housing prices…


February 21, 2018 - IMFnews

Short Takes: IU Chief Pagliara Weighs in on Supreme Court Decision / Bill Ackman is Now Underwater on his GSE Bets / NAMB Wants Ban on ‘Trigger Leads’ / Ditech Names Interim CEO but Does He Get the $5 Million?

It appears that Pershing Square is now under water on its GSE investments...


February 21, 2018 - IMFnews

A Great Time to Sell Servicing Rights: IMA, MIAC and Prestwick Launch Auctions

The MSR auction calendar is starting to look crowded…


February 20, 2018 - IMFnews

Short Takes: Why GSE Reform is Truly Dead / A Tale of Two GSEs / Common Not Doing So Well / Stearns’ Future in Servicing? / SoFi Cuts Mortgage Workers / About Those Strategic Plans…

Social Finance is cutting positions in its mortgage division...


February 20, 2018 - IMFnews

The Mel Watt Factor Looms Large as GSE Reform Sags

One trade group official said a new FHFA director might be hell-bent on reducing the federal footprint in mortgages…


February 20, 2018 - IMFnews

GSE Credit Box Continues to Loosen, but Not by Much

Borrowers with credit scores below 700 accounted for 22.03 percent of GSE purchase loans last year…


February 16, 2018 - Inside The GSEs

GSE Roundup

At $600K a Year, Fannie Mae CEO Tim Mayopoulos is Underpaid. Although Fannie Mae reported pre-tax income of $18.4 billion in 2017, its CEO Timothy Mayopoulos took home, once again, a base salary of roughly $600,000, the limit for both GSE CEOs and a figure that seems exceedingly low when compared to financial services firms of similar size. A new 10-K filing from the company notes: “Our chief executive officer’s compensation in 2017 was more than 90 percent below the market median for comparable firms. Our inability to offer market-based compensation hinders our succession planning for our chief executive officer role, and potentially our ability to hire...


February 16, 2018 - Inside The GSEs

Layton Says Lack of New Construction Impacts Affordability

Freddie Mac CEO Donald Layton said that home prices have been reasonably strong over the past five years or so, but a new construction lag is what’s really contributing to the lack of affordable housing. He also said there’s been a noticeably higher rate of home price growth than in average or median family income. Layton said, in the long-term, the U.S. has produced 1.5 million housing units a year, both multifamily and single-family. And with a small population growth adjustment, Layton said it should be about 1.6 million a year now. “I believe it has noticeably declined in the financial crisis and it has never returned to that level again,” he said in a phone interview.


February 16, 2018 - Inside The GSEs

Hensarling Warns Congress to Act Soon on Reform, IU Calls It a Ploy

Rep. Jeb Hensarling, R-TX, sounded off on what may happen if Congress doesn’t act on housing- finance reform this year and implied that it doesn’t look good for affordable housing efforts. During a House Financial Services Committee hearing last week, the committee chair fired off a series of questions to Treasury Secretary Steve Mnuchin asking for confirmation on the Federal Housing Finance Agency’s powers. With FHFA Director Mel Watt’s term expiring in January 2019, Hensarling’s concern was that the Trump administration will name a replacement that could do away with some of the GSEs’ affordable housing initiatives.


February 16, 2018 - Inside The GSEs

Small Lenders, Affordable Housing Groups Oppose Senate Draft

Small lenders and affordable housing groups are not fans of the draft of housing-finance reform from Sen. Bob Corker, R-TN. Corker’s plan calls for having five or more guarantors to promote competition in the marketplace, but some worry about the big banks becoming the primary benefactors of this plan. With several private companies purchasing and securitizing mortgages, advocates of the 80-page draft said it would help end the duopoly of Fannie Mae and Freddie Mac. The proposal includes winding down the GSEs to establish the new guarantors of which none would be able to control more than 20 to 25 percent of the market.


February 16, 2018 - Inside The GSEs

Corker Reform Draft Pulls from MBA , DeMarco/Bright Proposals

The draft of the housing-finance reform proposal from Sen. Bob Corker, R-TN, appears to have morphed out of both the Mortgage Bankers Association plan and a proposal put forth by Michael Bright and Ed DeMarco. A recent analysis by the Structured Finance Industry Group compared the Senate discussion draft with the other two proposals. SFIG noted that all three proposals advocate an explicit mortgage-backed securities guarantee, preserving the to-be-announced market and the 30-year fixed-rate mortgage. But when it comes to the cash window, the Senate draft deviates from the MBA and Bright/DeMarco plans, which suggested maintaining the cash window operations through the GSEs. Corker’s draft would maintain the cash window through the guarantors


February 16, 2018 - Inside The GSEs

Mortgage Banking Executives Sign Letter to Congress on GSE Reform

This week, 127 mortgage banking executives attached their names to an open letter to members of Congress, urging federally elected politicians not to cede the work of housing-finance reform to the White House and the institutions it controls.The correspondence asks lawmakers to back draft legislation that creates a new “guarantor-based” system that builds on the current infrastructure created and maintained by Fannie Mae and Freddie Mac.The executives, members of the Mortgage Bankers Association, favor improving the system by having “two or more” guarantors. The group believes a guarantor-based system – as opposed to an “issuer-based” system – is the best way to meet the nation’s housing-finance needs.


February 16, 2018 - Inside The GSEs

GSEs Report $9B Earnings Loss Resulting from Tax Act

As predicted, per the Tax Cuts and Jobs Act, the GSEs’ fourth-quarter earnings took a big hit with Fannie Mae and Freddie Mac posting losses of $6.5 billion and $2.9 billion, respectively. This is a far cry from their combined net income of $7.7 billion in the third quarter. But this likely one-time event was prompted by the GSEs having to reduce the value of their deferred tax assets by $15.3 billion after the tax act became law in December 2017. As a result, Fannie will need a $3.7 billion draw from Treasury and Freddie will have to request a $312 million draw.


February 16, 2018 - Inside MBS & ABS

GSEs Report $9.4B Loss in 4Q Due to New Tax-Cut Provision on DTAs, Retained Portfolio Below Cap

Fannie Mae and Freddie Mac this week reported a combined loss of $9.4 billion for the fourth quarter of 2017, a direct result of the Tax Cuts and Jobs Act and its impact on their deferred tax assets. The two government-sponsored enterprises had to reduce the value of the DTA by $10.2 billion.


February 16, 2018 - IMFnews

What We’re Hearing: Death, Taxes and the GSEs / Sweet Tax Cows / Not a Peep Out of Pershing Square and Fairholme / The Wrath of Jeb / MSR Market Heats Up / A Huge Profit for Annaly / Citizens Bank Gets a New Mortgage Chief

Suffice to say, Fannie and Freddie are two cash cows that only a crazy person would eliminate, unless that crazy person doesn’t like money…


February 16, 2018 - IMFnews

Banks Increased MBS Holdings in Late 2017, but Individual Trends Differed

JPMorgan Chase and U.S. Bancorp each took different routes in shrinking their MBS portfolios…


February 15, 2018 - Inside Mortgage Finance

GSEs Take Earnings Hit Due to 2017 Tax Cut Law, G-fee Revenue Grows

Fannie Mae and Freddie Mac both suffered from what’s likely to be a one-time event that resulted in a hit on their earnings for the fourth quarter thanks to the late 2017 Tax Cuts and Jobs Act that impacted their deferred tax assets.


February 15, 2018 - IMFnews

Short Takes: Is Mel Watt Dropping Hints? / A Utility Model for Fannie and Freddie? / Refi Applications on the Rise (Ever So Slightly) / No (Permanent) Ginnie Prez, No FHA Chief / Uber Executive’s Foray Into Mortgages

Joshua Rosner, managing director of Graham Fisher & Co., states: “This sounds like the early stages of a utility model..."


February 15, 2018 - IMFnews

At $600K a Year, Fannie Mae CEO Tim Mayopoulos is Underpaid. GSE Worries About CEO ‘Succession’ Planning

No one has suggested publicly that Mayopoulos is unhappy with his pay, but in a new 10-K filing, Fannie worries that...


February 15, 2018 - IMFnews

Freddie, Like Fannie, Sees 4Q Results Get Smacked Around Because of Tax Changes, Will Need a $312 Million Check from Treasury

Prior to release of 4Q17 results, the GSEs had an “account balance” of $103.0 billion with Uncle Sam: $291.4 billion of dividends paid to Treasury versus $188.4 billion of assistance received.


February 14, 2018 - IMFnews

Freddie's 4Q Results Get Smacked Around Because of Tax Changes, Will Need a $312 Million Check from Treasury

All totaled, the new tax law will result in Treasury – which owns the senior preferred stock of the GSEs – forking over $4.01 billion to aid Fannie and Freddie...


February 14, 2018 - IMFnews

Short Takes: Arch has Some ‘Fairly Well Developed’ Plans / Auditing the FHA MMIF / New Residential May Become a Player in Ginnie MSRs / Consumer Advocates Not Happy / Top VA Official Departs Agency for PenFed

Look for New Residential to become a buyer of Ginnie Mae servicing packages...


February 14, 2018 - IMFnews

New Tax Law Blows a Hole in Fannie Mae’s 4Q17 Results, FHFA to Ask Treasury for $3.7B in Cash to Eliminate the ‘Net Worth’ Deficit

As National Association of Realtors Vice President Joe Ventrone put it: “It’s an unintended consequence of the tax bill rather than falling into the bailout narrative.”


February 14, 2018 - IMFnews

127 Mortgage Banking Executives Sign ‘Open Letter’ to Congress on GSE Reform

Housing finance reform legislation is being worked on in the House and Senate but has yet to be formally introduced.


February 14, 2018 - IMFnews

Why Not Make the FHLBanks MBS Guarantors Too?

Under this arrangement, the FHLBanks would be “jointly and severally liable” for the obligations of any single-family guarantor formed under the new system…


February 13, 2018 - IMFnews

New GOP Tax Law Blows a Hole in Fannie Mae’s 4Q17 Results, FHFA Expected to Ask Treasury for $3.7B in Cash to Eliminate the ‘Net Worth’ Deficit

The DTA hit Fannie took and the resulting net loss was fully expected and likely won’t cause an uproar on Capitol Hill. However, one lobbyist quipped: "Ah, the first taxpayer bailout of a large financial institution since the Great Recession."


February 13, 2018 - IMFnews

Short Takes: The Trump Budget and the GSEs (Not So Good) / No More GSE Money for Affordable Housing / Treasury Wants to ‘Right Size’ Federal Housing Programs / Cuts in Store for the CFPB? / Arch Posts a Strong 4Q17 Profit

The Treasury Department's goal is to right-size federal housing programs...


February 12, 2018 - IMFnews

Trump Budget: DTA Hits Mean Treasury Draws for Fannie and Freddie. White House Wants to Cut Contributions to the Housing Trust Fund

Freddie Mac's Treasury draw is estimated at $400 million...


February 12, 2018 - IMFnews

Housing Advocates Worried about Sen. Corker’s GSE Reform Draft

The Center for Responsible Lending and other groups said the Corker draft threatens access, affordability and market stability…


February 9, 2018 - IMFnews

What We’re Hearing: America, a Good Mortgage Customer? / Higher Rates, but How Much Higher? / Mortgage Bulls / Three Former Clayton Executives Launch Due Diligence Firm / Santander’s Warehouse Chief Departs / Mel Watt’s Successor Might…

The new game in town is figuring out who will succeed Mel Watt as director of the Federal Housing Finance Agency...


February 9, 2018 - IMFnews

Agency MBS Production Down a Modest 6.9 Percent in January. Turbulence Ahead?

January volume was the lowest monthly total since May 2017…


February 8, 2018 - IMFnews

Freedom Mortgage Buys $25 Billion of Servicing Rights from Stearns Lending

In the summer of 2015, The Blackstone Group bought a controlling interest in Stearns.


February 8, 2018 - IMFnews

Government and Jumbo Sectors Took the Biggest Lumps in 4Q17 Lending

The conventional-conforming market held up relatively well in the fourth quarter, with origination volume easing by just 0.7 percent…


February 7, 2018 - IMFnews

Short Takes: The FHFA Version of Mick Mulvaney / Political Appointees at the FHFA? / Waiting on Hensarling’s GSE Draft / A Strong Profit for Genworth / Reverse Lender Goes Forward

Rep. Hensarling, a Republican from Texas, has yet to unveil a legislative blueprint…


February 7, 2018 - IMFnews

MBA Chairman Motley Hopeful that HUD Will Act Soon on FHA Clarifications

The trade group chief said uncertainty still exists around FHA loan level certifications…


February 7, 2018 - IMFnews

Freddie Mac Looks to Carve Out New Niche for Specified Pools

Mortgages with low loan balances appeal to investors because of their lower prepayment risk…


February 7, 2018 - IMFnews

Retail Loans Less Risky in Agency Market

Although Freddie Mac had a higher average credit score than its rival GSE, Fannie Mae had slightly lower average DTI and LTV ratios…


February 6, 2018 - IMFnews

Short Takes: What Stock Market Correction? / Bond Prices? / Fretting Over Fannie-Freddie Common / The GSE Message from Jeb and Steve / BlackRock Likes Genworth / New Penn Gets a New President / FSR Chief Pawlenty Departs

The price of Fannie Mae and Freddie Mac common is getting smacked around...


February 6, 2018 - IMFnews

Chairman of House Financial Services Subcommittee Pondering GSE Reform

MBA’s Dave Stevens worries about what might happen to the mortgage market under a Trump-appointed FHFA director…


February 5, 2018 - IMFnews

Short Takes: Ginnie is Good, but is it That Good? / Brunts Bolts Freddie for USB / Moody’s Downgrades New Rez, Citing Reliance on Subs / The Wild Ride of the 10-Year Treasury / New Mortgage Chief at SunTrust

On Friday, Moody’s downgraded the issuer rating of New Residential Investment Corporation...


February 5, 2018 - IMFnews

Fannie’s Re-entry into the LIHTC Market: $100 Million for Affordable Rentals

The Raymond James Affordable Housing Fund is part of the GSEs’ effort to provide capital for affordable rental housing and underserved markets.


February 2, 2018 - Inside The GSEs

GSE Roundup

Freddie Prices First Lower LTV STACR of 2018. Freddie Mac priced a $900 million Structured Agency Credit Risk debt notes offering last week, its first lower loan-to-value deal of the year. STACR 2018-DNA1 has a reference pool of single-family mortgages with an unpaid principal balance of approximately $34.7 billion. The reference pool includes loans with LTVs ranging from 60 to 80 percent. CoreLogic to Redistribute GSE CRT Data. CoreLogic announced this week that it is redistributing credit risk transfer loan-level data from Fannie Mae and Freddie Mac. The CRT redistribution will include Fannie Mae’s Connecticut Avenue Securities data as well as data from Freddie Mac’s Structured Agency...


February 2, 2018 - Inside The GSEs

Federal Housing Finance Agency Finalizes Goals for 2018-2022

The Federal Housing Finance Agency finalized its 2018-2022 strategic plan this week. A draft proposal of the plan was released back in October for public input. The long-range plan focuses on three strategic goals surrounding issues of safety and soundness of the GSEs; ensuring liquidity, stability and access in housing finance; and managing the conservatorship. When identifying risk in Fannie Mae and Freddie Mac, the FHFA said it plans to carefully document and communicate any adverse examination findings and conclusions to the GSEs.


February 2, 2018 - Inside The GSEs

NAR Pushes for Lower G-Fees, LLPAs in Wake of Tax Reform

The National Association of Realtors said GSE guarantee fees are gouging homeowners and urged the Federal Housing Finance Agency to slash them. Its argument is based on the lower corporate tax rate resulting from the 2017 tax law. The trade group, which has been campaigning for lower g-fees for a while now, notes that g-fees are based in part on Fannie Mae and Freddie Mac target pre-tax rate of return. Lower tax rates change that calculation, the NAR said. “To account for the impact of tax reform on the rate of return, the FHFA should reduce g-fees to reflect the lower corporate tax rate and to preserve the current target rate of return,” said Elizabeth Mendenhall, NAR’s president.


February 2, 2018 - Inside The GSEs

GSE Launches New Cash Benefit For Low-Balance Loan Segment

Beginning Feb. 1, Freddie Mac will offer a cash benefit to sellers of low-balance loan pools in the $175,000 to $200,000 range. Prior to the announcement, $175,000 was the cut off for cash payouts through the program These benefits are reserved for loan sellers that fit into niche loans sizes used for specified MBS pools. The new category targeted for cash deliveries are 30-year fixed-rate mortgages with loan amounts ranging from $175,000 to $200,000. A spokesman for Freddie said the change was made as a benefit to its customers.


February 2, 2018 - Inside The GSEs

Milken Institute Calls Out Technical Challenges to Proposals

With housing-finance reform gaining momentum, the Milken Institute said bringing it over the finish line requires policymakers to address the technical issues in the proposed multiple-guarantor model or one based on private insurance. Failing to address those issues would leave the housing-finance system in worse shape than keeping Fannie Mae and Freddie Mac in conservatorship, the organization said in a new analysis. The multiple-guarantor model suggests attracting new guarantors to promote competition in the market and end the GSE duopoly. But the authors of the paper, which include Erik Kaplan, Michael Stegman, Phillip Swagel and Ted Tozer, said that’s a two-fold challenge that includes determining how to provide space for new guarantors to enter the...


February 2, 2018 - Inside The GSEs

GSE Single-Family Business Off To a Weak Start in 2018

Fannie Mae and Freddie Mac saw declines in the flow of purchase and refinance loans into single-family mortgage-backed securities last month, starting 2018 on a sour note. The two GSEs produced a total of $67.48 billion of new single-family MBS in January, according to a new Inside The GSEs analysis and ranking. That was down 8.8 percent from the previous month and off 26.4 percent from January 2017. It was the GSEs’ weakest monthly output since May 2017, and it would have been worse had Fannie not come up with $4.69 billion in mortgage securities backed by modified loans. Including those mod-backed deals, Fannie issuance was up 5.0 percent from December. Without them, the company’s new MBS issuance fell 5.7 percent in January.


February 2, 2018 - Inside The GSEs

Mnuchin Talks GSE Reform, Wants Congress to Take the Lead

In the event that Congress can’t come to an agreement on fixing Fannie Mae and Freddie Mac, Treasury Secretary Steve Mnuchin said the department can take matters into its own hands. But he would rather leave it up to the lawmakers. “There are certain administrative options that we have,” he said, adding, “These entities are very complicated, and I would just say my strong preference would be to work with Congress on a bipartisan basis to reach a long-term solution.” Mnuchin reaffirmed his commitment to reforming the housing-finance system and support for the 30-year fixed-rate mortgage while testifying at a Committee on Banking, Housing, and Urban Affairs hearing Tuesday morning.


February 2, 2018 - Inside The GSEs

Corker’s GSE Reform Draft Includes Multiple Guarantors, Ginnie Wrap

Reforming the housing-finance system under the plan from Sen. Bob Corker, R-TN, includes having at least a handful of guarantors, winding down the GSEs and establishing a mortgage insurance fund with private capital, according to a leaked draft making the rounds this week. The 80-page document seeks to promote competition in the marketplace by having five or six guarantors of conventional mortgage-backed securities, with none of them getting more than 20 percent to 25 percent of the market. Those new guarantors would be expected to launch within two years. Section 809 of the legislation spells out that “as promptly as practicable” the FHFA can greenlight Fannie Mae and Freddie Mac to “sell or transfer” their assets.


February 2, 2018 - IMFnews

NAR Wants FHFA to Reduce G-Fees, LLPAs

The NAR request comes at a time of rising interest rates…


Poll

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