Freddie Mac

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

June 20, 2018 - IMFnews

Incenter and MIAC Out With Bulk MSR Auctions

The delinquencies on the MIAC package total 5.3 percent…

June 20, 2018 - IMFnews

Cowen: FHFA Chief Watt Won’t Act on a Capital Restoration Plan for the GSEs. However, Team Trump Might

But Cowen also offers up a ray of hope to GSE “recap and release” backers…

June 19, 2018 - IMFnews

Short Takes: Sen. Warren Will Block CFPB Nominee / Midwestern Humility / Yet More Regulations Proposed for Home Servicers / If Maxine Waters Becomes Chairman… / The GSEs, More Dominant Than Ever?

Sen. Elizabeth Warren: "Now Donald Trump wants her to run the CFPB. I will put a hold on her nomination – and fight it at every step – until she turns over all documents..."

June 19, 2018 - IMFnews

Nine Groups Want Fannie and Freddie to Have a Regulatory-Mandated Capital Restoration Plan

Consultant Joshua Rosner of Graham-Fisher said the letter is significant because it marks the first time that the ICBA has joined with civil rights groups and housing organizations on a GSE-related matter.

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 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

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 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 - 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

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

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..."

May 29, 2018 - IMFnews

IMA, Phoenix Offering MSR Packages

According to the offering circular, the average loan balance is $230,368 with delinquencies totaling 5.80 percent...

May 29, 2018 - IMFnews

More Big Swings in GSE Single-Family MBS Business in April

However, Freddie still has some catching up to do to reach the 40.2 percent GSE share it had last year.

May 25, 2018 - Inside The GSEs

GSE Roundup

Treasury Official Sees Major Impact from Single Security. A key Treasury Department official suggested that issuers of non-agency MBS may someday participate in the common securitization platform being developed by Fannie Mae and Freddie Mac. Craig Phillips, counselor to the Treasury, said the industry has made a lot of progress toward the launch of the single security that is scheduled for June 2019. “Industry preparedness is about an eight or nine on a scale of 10,” he said during remarks at this week's secondary market conference sponsored by the Mortgage Bankers Association in New York. Phillips characterized the...

May 25, 2018 - Inside The GSEs

NY Fed Says Reform Should Follow Danish Mortgage Finance System

Housing-finance reform may want to take some cues from the mortgage-finance system in Denmark, according to the Federal Reserve Bank of New York in a new report comparing and contrasting the two systems. In fact, the creditor-friendliness of the Danish system means that relatively more price risk is borne by the homeowner. One of the bases for NY Fed’s recommendation is that, unlike in the U.S., the Danish system remained stable and solvent during the 2007-2009 financial crisis. And, despite falling home prices, the Danish system didn’t require government intervention or funding. The authors chose that system because they said it’s most similar to the model in the U.S.

May 25, 2018 - Inside The GSEs

New Fannie Mae, Freddie Mac Shareholder Lawsuits Filed

GSE shareholder litigation activity continues into mid-year with two new cases being filed in the past week. Joshua Angel, a corporate restructuring lawyer and owner of junior preferred stock, filed a lawsuit this week to sue Fannie Mae, Freddie Mac and their respective board of director members who were serving on Aug. 17, 2012, when the Treasury sweep was formalized. Angel seeks to recover damages from the defendants for his pro-rated share of the $10 billion dividend entitlement loss he and other junior preferred shareholders have incurred to date.

May 25, 2018 - Inside The GSEs

FHFA Language Access Plan Addresses Some Concerns

The GSEs recently released their plans to improve the mortgage process for borrowers who have a limited proficiency of English and some point to disclosures as being a critical element of the plan. The Federal Housing Finance Agency has asked Fannie Mae and Freddie Mac to identify language barrier obstacles for potential borrowers, and come up with possible solutions. The agency’s plan established milestones with start dates this year through 2020. Fannie and Freddie are spending the first half of 2018 defining roles and responsibilities for both a resource clearinghouse and a language access working group consisting of housing representatives to work with consumer groups that support LEP consumers.

May 25, 2018 - Inside The GSEs

FHFA Report to Congress Seeks Counterparty Oversight

The Federal Housing Finance Agency seeks oversight of counterparties that provide services to Fannie Mae, Freddie Mac and the Federal Home Loan Banks, according to its 2017 annual report to Congress published this week. In addition to reporting examination activity, the FHFA offers legislative recommendations. The agency discussed the regulated entities’ heavy involvement with third parties who provide “critical services” supporting the secondary mortgage market. The agency said this includes nonbank mortgage servicers for Fannie Mae and Freddie Mac. And while oversight of these counterparties is important to the safety and soundness of the GSEs, the FHFA argued that oversight can only happen now through contractual provisions.

May 25, 2018 - Inside The GSEs

Community Lenders Want Action Taken to Stop MI Volume Discounts

Community mortgage lenders want the Federal Housing Finance Agency to put an end to pricing disparities caused by mortgage insurers offering discounts to Fannie Mae and Freddie Mac lenders based on their size or volume. And they recommend doing so in the same manner the agency solved pricing disparities over guarantee fees. The Community Home Lenders Association wrote the FHFA last week requesting that Director Mel Watt investigate the practice that the trade group says has become more prevalent. CHLA said it puts small lenders and their borrowers at a disadvantage. As a result, some individual CHLA members are even boycotting private MIs that engage in volume discounts.


With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

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