Freddie Mac

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

May 26, 2017 - IMFnews

What We’re Hearing: Don’t Bet on Court Outcomes / Randy May Want to Wait on the Curtains / No President, No Cry / About that $627 Million… / What About a Partial Capital Cushion for the GSEs? / A Busy Week for Incenter, Phoenix

If Trump is successful, presumably the money would flow through to the bottom line of Fannie and Freddie and counted toward earnings.


May 26, 2017 - Inside MBS & ABS

Wells Fargo Analysis Examines GSE Insurance Credit-Risk Transfer, ACIS Larger than CIRT

Insurance policies are the second-largest form of the government-sponsored enterprises’ credit-risk transfer but Fannie Mae’s Credit Insurance Risk Transfer (CIRT) program and Freddie Mac’s Agency Credit Insurance Structure (ACIS) have a few stark differences. One of the primary differences in the two is that Freddie has retained large portions of the tranches from its popular Structured Avenue Credit Risk deals (STACR), and used the ACIS program as a way to transfer some of the remaining risk, up to the 5 percent retention limit, note analysts at Wells Fargo Securities in a recent report. With ACIS coverage tied to companion STACR deals, it’s...


May 26, 2017 - Inside MBS & ABS

Latest Deals Show Market Acceptance of Freddie And Fannie Re-performing Loan Programs

Fannie Mae and Freddie Mac both announced new re-performing loan sale transactions this month as the two government-sponsored enterprises look for ways to shed illiquid assets. Fannie began marketing its first re-performing loan sale back in November to help reduce its balance sheet. The program continues to gain more traction with each sale. That first sale totaled $789.2 million in unpaid principal balance. Fannie has since announced...


May 26, 2017 - IMFnews

Depositories Increased Their MBS Holdings in 1Q17 – With a Boost from Large Thrifts

Much of the growth in MBS investments came from two large thrifts: Charles Schwab Bank and E*Trade Bank…


May 26, 2017 - Inside MBS & ABS

Banking Industry Upped Its MBS Holdings In 1Q17, With a Boost From Large Thrifts

The banking industry again boosted its holdings of single-family MBS during the first quarter of 2017, although results varied significantly among various major players in the market. Banks and thrifts reported $1.762 trillion in held-to-maturity and available-for-sale MBS as of the end of March, a 1.5 percent increase from the previous quarter, according to a new Inside MBS & ABS ranking and analysis of bank call reports. With Federal Reserve MBS purchases in a holding pattern, banks and other investors are in a better position to increase their holdings as the supply of agency MBS slowly grows. The industry held...[Includes two data tables]


May 25, 2017 - Inside Mortgage Finance

UI Expects SFR Financing to Grow, But Fannie Needs to Clearly Articulate Role in the Market

Fannie Mae recently completed its first single-family rental securitization deal with a large institutional investor and the Urban Institute said demand for SFR financing is likely to grow. The $1 billion deal with Invitation Homes was announced in January as a pilot program. The Dallas-based company is the largest single-family rental operator in the U.S. and has a portfolio of about 50,000 homes that it acquires from foreclosures. As investors increasingly rely on leverage to earn an acceptable rate of return, these kinds of transactions are expected...


May 25, 2017 - Inside Mortgage Finance

Home Price Appreciation, Improved Credit, Looser Underwriting Boosting Demand for Cash-Out Refis

An uptick in mortgage interest rates has reduced rate-term refinance volume but demand from borrowers for cash-out refis and home-equity loans appears to remain relatively strong. “When we look at the landscape for home-equity extraction, we see potential tailwinds from loan-to-value ratio and credit curing combined with slightly less stringent lending standards helping bolster borrower demand,” analysts at Wells Fargo Securities said in a report last week. Borrower LTV ratios have been helped...


May 25, 2017 - Inside Mortgage Finance

Trump Budget Preserves FHA, Ginnie Mae Funding Levels, Eliminates Key HUD Programs, Calls for CFPB Restructuring

The Trump administration has revived a controversial proposal to tap FHA lenders to help pay for technology upgrades at the Department of Housing and Urban Development. HUD is among nine federal agencies facing significant cuts in their discretionary budgets, al-though guarantee commitments for FHA’s single-family mortgage insurance program and Ginnie Mae mortgage-backed securities programs were kept at their previous fiscal levels, $400 billion and $500 billion, respectively. The White House budget plan incorporates...


May 25, 2017 - Inside Mortgage Finance

Third-Party Originators Fared Slightly Better Than Retail in Declining First-Quarter Market

Correspondent lenders and mortgage brokers took slightly less severe declines in origination volume in early 2017 than was seen in the retail channel, according to a new Inside Mortgage Finance ranking and analysis. All three production channels were down sharply as total first-lien mortgage originations tumbled 33.6 percent from the fourth quarter of 2016. The retail segment saw the biggest decline, dropping 34.6 percent to an estimated $221.0 billion. Retail production typically features...[Includes four data tables]


May 25, 2017 - IMFnews

More MSR Offerings from Incenter

For the week, IMA rolled out $3.87 billion worth of servicing auctions.


May 25, 2017 - IMFnews

TPO Lenders Fared Slightly Better Than Retail in a Declining 1Q17 Market

The retail segment saw the biggest decline, dropping 34.6 percent to an estimated $221.0 billion.


May 24, 2017 - IMFnews

Short Takes: ABA Wants Explicit Guaranty on MBS / Does it Matter? / Trump Wants to Kill USDA Loan Program / Rep. Hensarling an Optimist but… / A Promotion at Arch MI

In the new Trump budget, the White House takes an ax to the USDA’s rural single-family housing direct loan program.


May 24, 2017 - IMFnews

MBA Chief: Don’t Leave Necessary GSE Reforms to the FHFA

MBA's Stevens once again slams those in favor of a GSE “recap and release” plan, saying this group consists “primarily [of] stock speculators who are most concerned about personal profits” rather than the future of the U.S. housing system.”


May 24, 2017 - IMFnews

The MSR Market Firms Up; More Buyers; What Could Go Wrong?

Servicing advisors Steve Harris and Mark Garland view the MSR market as improving…


May 24, 2017 - IMFnews

GSE Purchase Business Showed Promise in April, but...

In April, Wells Fargo was the top seller of mortgages to Fannie and Freddie with $9.02 billion, followed by Quicken Loans and JPMorgan Chase…


May 23, 2017 - IMFnews

Short Takes: PHH Gets an ‘Outperform’ Rating / Woman Sentenced in Freddie Mac Fraud / A Quart of Milk with that Fannie MBS? / Title Giant Buys Auction Firm / CMC Asks for CFPB Guidance

A new research note from Wedbush Securities calls PHH an “outperform,” but also reduces the target price on the company’s stock...


May 23, 2017 - IMFnews

Incenter Selling $2.15 Billion of GSE Servicing Rights

California accounts for the largest chunk of receivables at 34.9 percent.


May 23, 2017 - IMFnews

KBW Says Leave the GSE Dividend Alone, Go with More Risk-Sharing Deals

Meanwhile, although GSE risk sharing seems popular in some circles, FHFA itself admitted recently that some of this coverage has come at premium cost to Fannie and Freddie.


May 22, 2017 - IMFnews

Short Takes: How Well Do You Know Your Counterparties? / The Main Street GSE Reform Coalition / The Group Includes … / GSE AFH Money? / FSR Picks Government Affairs Chief

How well do you know your mortgage counterparties?


May 22, 2017 - IMFnews

Chances of a ‘Win’ by GSE Stock Speculators Dimming?

Since Watt’s recent testimony, GSE speculators like Pershing Square and Fairholme have been mostly quiet.


May 22, 2017 - IMFnews

MBS Trading Volume Declines to Lowest Level of the Year. Meaning?

The low trading volume is an indication that liquidity is drying up, but it also reflects a decline in new agency MBS being created.


May 22, 2017 - IMFnews

GSE Buybacks Tied to Legacy Loans Fade Further Into the Rearview…

In a number of cases, GSE seller-servicers cleaned up pipelines of pending or disputed buyback demands.


May 19, 2017 - Inside The GSEs

IGSE Roundup

Freddie’s Second RPL Sale.  Freddie Mac announced an approximately $292 million structured sale of a pool of seasoned reperforming loans. The pool is comprised of loans with step-rate modifications using GSE proprietary modifications. The pool includes reperforming and moderately delinquent loans being serviced by Select Portfolio Servicing, Inc. The GSE’s first RPL sale was a pilot program that proved to be successful, according to Freddie. …


May 19, 2017 - Inside The GSEs

BlackRock Reform Proposal Recommends Explicit Guarantee

BlackRock joined the chorus of GSE reform proposals by releasing its own last week. It aligns with the consensus view that reform should include an explicit government guarantee for mortgage-backed securities. An explicit government MBS guarantee is necessary to fully support a deep and liquid to-be-announced market, according to the asset manager. “Without this support, we believe credit would be more expensive and more difficult to obtain, which would negatively impact housing markets,” said BlackRock. Ginnie Mae MBS have an explicit guarantee, while Fannie and Freddie securities had an “implied” guarantee until they went into conservatorship. Although many proposals believe that’s the best...


May 19, 2017 - Inside The GSEs

Fannie, Freddie Release DTS Drafts, Detail Chattel Loan Pilot

Fannie Mae and Freddie Mac have proposed to pilot chattel loan programs within the next couple of years, but the manufactured industry wasn’t exactly impressed. Early last week, the GSEs released draft proposals detailing how they plan to boost underserved manufactured housing, rural housing and affordable housing preservation markets for low- and moderate-income families over the next three years. Under the Federal Housing Finance Agency’s duty-to-serve requirement, Fannie and Freddie are charged with coming up with ways to increase financing in those three areas. The drafted plans are part of an extended implementation process. The GSEs admitted there is not much information available about chattel lending and said...


May 19, 2017 - Inside The GSEs

GSEs View Front-End Transactions As a Compliment to CRT Program

The GSEs view their recent front-end credit-risk transfer pilots as another complementary addition to their CRT programs but have no plans of a big rollout for these types of transactions. During a CRT symposium this week in New York, officials from the GSEs discussed the use of mortgage insurance in CRTs. Robert Schaefer, Fannie’s vice president for credit enhancement strategy and management, called the transactions “a good tool in the toolkit,” but said he doesn’t see them taking over the majority of CRT activity. Gina Healy, Freddie’s vice president of credit risk transfers, agreed that the front-end CRTs, which use MIs is a good mechanism to have because it provides certainty and efficiency it terms of pricing.


May 19, 2017 - Inside The GSEs

GSE CRT REMIC Structure Proposal is REIT-Friendly

The GSEs proposed changes to their credit-risk transfer programs last week making them more conducive for real estate investment trusts to participate. Analysts say the changes will help create REIT demand for CRTs. REITs have long argued that regulatory rules have kept them out of the CRT market. Currently the structure of the GSEs’ popular CRT programs don’t meet the income test for REITs since they are structured as agency debt securities The proposed enhancements to Fannie’s Connecticut Avenue Securities program and Freddie’s Structured Agency Credit Risk would let their future CAS and STACR offerings qualify as real estate mortgage investment conduits.


May 19, 2017 - Inside The GSEs

Watt Dishes on Complications with Alternative Credit Scoring

While the FHFA’s capital buffer plan was the most talked about news that came out of the Senate Banking, Housing and Urban Affairs Committee last week, Watt also dished on a number of other issues including credit access, nonperforming loans and the delay of the common securitization platform. When asked about a timeline for exploring alternative forms of credit analysis, Watt said that the FHFA hopes to get through that by the end of the year. …


May 19, 2017 - Inside The GSEs

CRT Programs Play Key Role in Housing Finance Reform

Fannie Mae and Freddie Mac credit-risk transfer programs have evolved from their prior business model but the market still has a ways to go before it fully matures, according to Federal Housing Finance Agency Director Mel Watt. Watt noted that the GSEs have made a tremendous amount of progress on credit risk transfers in a short amount of time, increasing their transaction volume from an unpaid principle balance of $90 billion in 2013 to $548 billion in 2016. “From 2013 through the end of 2016, the enterprises have transferred a meaningful portion of credit losses on a combined $1.4 trillion in mortgages, with a risk in force of about $49 billion,” said Watt, while...


May 19, 2017 - Inside The GSEs

Watt Continues to Promote GSE Reform in Remarks to Bankers

Federal Housing Finance Agency Director Mel Watt reiterated his view this week that housing finance reform should fall in the hands of Congress, not the FHFA, and discussed the GSEs’ role in expanding access to credit. Speaking at the American Mortgage Conference in North Carolina, Watt followed up on points he made during last week’s Senate Housing, Banking and Urban Affairs Committee. “I drew a distinction between decisions we have made, and continue to make, as conservator and decisions Congress must make,” he said. Watt explained that decisions the FHFA has made during the conservatorship have “fundamentally reformed” the GSEs’ operations, practices and protocols.


May 19, 2017 - Inside The GSEs

GSE 1-Family Business Dropped In April, Despite Purchase Gains

The purchase-mortgage business showed some green shoots in April, but not enough to offset another drop in refinance activity, according to a new Inside The GSEs ranking and analysis. Fannie Mae and Freddie Mac securitized $31.84 billion of purchase mortgages last month, a 12.2 percent increase from March. It was the third straight monthly gain in purchase-mortgage volume, bringing year-to-date activity to $123.46 billion, a 13.6 percent improvement over the same period in 2016. Purchase mortgages accounted for over half of GSE business in April for the first time since August of last year. But the refinance side of the business fell again in April, to just $25.49 billion. That was down 17.8...


May 19, 2017 - Inside The GSEs

FHFA’s Capital Buffer Plan Draws Praise, Criticism and Questions

Federal Housing Finance Agency Director Mel Watt’s comments last week that he’s prepared to allow the GSEs to build a capital buffer to avoid a Treasury draw was met with both applause and concern. But this week, Bob Ryan, special director to Watt, clarified the comments stating that the plan would entail delaying the dividend payments to the U.S. Treasury Department and not suspending them. Ryan, speaking during a credit-risk transfer symposium in New York City, kicked off the first five minutes of a panel discussion about GSE reform by talking about the potential capital buffer plan. He said that it would be done strictly for the purpose of avoiding draws on the “limited resources of the preferred stock purchase agreement.”


May 19, 2017 - IMFnews

Letting the GSEs Build a (New) Capital Buffer: The Devil’s in the Details

The only way Fannie and Freddie are going to lose money is if there’s a hedging loss. And even then, it will be a non-cash charge…


May 19, 2017 - IMFnews

GSEs Eye Front-End Risk-Sharing but Believe Usage Could be Limited

Freddie Mac’s Gina Healy said the GSE expects to do another front-end MI transaction this month.


May 19, 2017 - IMFnews

REIT MBS Holdings Grew Slightly in 1Q17, but Change in CRTs Could Boost Volume

Some 91.8 percent of REIT MBS holdings ($211.95 billion) are in agency securities…


May 19, 2017 - Inside MBS & ABS

Estimated Current LTV Disclosure in STACR Deals Seen as a Leading Indicator of Mortgage Performance

A unique disclosure Freddie Mac is providing in risk-sharing transactions can help provide MBS investors with forward-looking insight about mortgage performance, according to an analysis by Kroll Bond Rating Agency. Freddie started disclosing updated loan-to-value ratios for mortgages in its Structured Agency Credit Risk transactions in March 2016. On a quarterly basis, the government-sponsored enterprise discloses the estimated current LTVs based on Home Value Explorer (HVE), its proprietary automated valuation model. Connecticut Avenue Securities risk-sharing transactions from Fannie Mae don’t include a similar disclosure. KBRA noted...


May 19, 2017 - Inside MBS & ABS

GSEs View Front-End Credit-Risk Transfers As an Ingredient in Diversifying Transactions

Officials at Fannie Mae and Freddie Mac say pilot deals that feature added primary mortgage insurance at the front end of the securitization process are a useful addition to their credit-risk transfer programs even if their future looks somewhat limited. Speaking at a CRT conference in New York City this week, Robert Schaefer, Fannie’s vice president for credit enhancement strategy and management, called the transactions “a good tool in the toolkit,” but said he doesn’t see them taking over the majority of CRTs. Gina Healy, Freddie’s vice president of credit risk transfers, agreed...


May 19, 2017 - Inside MBS & ABS

MBS Trading Volume Declines to Lowest Level Of 2017; Rates Continue on a Downward Path

The average daily trading volume in agency MBS totaled $195.7 billion in April, the lowest reading of the year and third worst over the past 12 months, according to figures compiled by the Securities Industry and Financial Markets Association. The low trading volume is an indication that liquidity is drying up, but it also reflects a decline in new agency MBS being created. According to figures recently compiled by Inside MBS & ABS, lenders issued...


May 19, 2017 - Inside MBS & ABS

REIT MBS Holdings Grew Slightly in 1Q17, and Change in CRT Programs Could Boost It Further

Real estate investment trusts that focus on the MBS market recorded a modest increase in their MBS holdings during the first quarter of 2017, according to an Inside MBS & ABS analysis. And observers say a pending change in how Fannie Mae and Freddie Mac structure their credit-risk transfer programs may boost REIT participation further. The 15 mortgage REITs tracked by Inside MBS & ABS reported a combined $230.82 billion of MBS investment at the end of March, including assets held in the to-be-announced market. That was up 1.6 percent from the end of 2016, though it was still off from year-ago levels. Some 91.8 percent of REIT MBS holdings are...[Includes one data table]


May 18, 2017 - Inside Mortgage Finance

The GSE Reform Plan: FHFA and Treasury Do as Much as They Can Administratively and Leave the Rest to Congress

For the most part, several different factions of the mortgage industry have applauded the move by the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to build some type of capital buffer. Now comes the hard part: the details. Early this week, FHFA Acting Deputy Director of the Division of Conservatorship Bob Ryan said in a speech that the capital buffer plan would entail a delay of dividend payments to the U.S. Treasury Department – not an elimination of them. No other specifics were provided...


May 18, 2017 - Inside Mortgage Finance

The MSR Sales Market Heats Up: More Buyers And Prices Firm Up. What Could Go Wrong?

Although bulk transfers of mortgage-servicing rights were down somewhat in the first quarter, sales advisors are reporting strong activity for the period including more buyer interest and a firming up of prices, even on Ginnie Mae product. According to affiliated newsletter Inside Mortgage Trends, bulk agency MSR transfers that closed in the first quarter were down 35.9 percent from the fourth to $77.3 billion. The biggest downturn was in Fannie Mae product, due to a temporary freeze on bulk transfers as servicers adjusted to new investor reporting requirements. Freddie Mac transfers were actually up from the fourth quarter. More banks and consortiums are extending...


May 18, 2017 - IMFnews

Short Takes: About Those GSE Dividend Payments… / Maybe Half a Payment? An IOU? / Money Owed is Money Owed / Mnuchin Targets Second-Half for GSE Reform / New Penn Names New COO

What if the FHFA cuts the payments and hands Treasury an IOU? The possibilities are endless...


May 18, 2017 - IMFnews

FHFA Chief Declares G-Fees ‘Appropriately’ Priced; On CRTs, He Admits to Premium Pricing

Watt noted the CRT coverage has come at a financial cost – and that Fannie and Freddie have been paying a premium.


May 18, 2017 - IMFnews

All Major Loan Categories Saw Big Drops in 1Q17 Originations; GSE Market Hurt the Most

The nonprime residential market is getting more attention as the big product categories hit the skids.


May 17, 2017 - IMFnews

Short Takes: Refis Hit a Low Not Seen Since 2008 / Let’s Compare Conservatorships / HUD Chief Agrees with NAR on Condos / Dead Reverse Lender Settles / A New Branch for Castle & Cooke

This fall will mark – unless there’s divine intervention or a Kumbaya moment in Washington – the ninth anniversary of the federal takeover of Fannie and Freddie.


May 16, 2017 - IMFnews

Short Takes: Ocwen Apologies for Filing Miscue / An Investment that Carries ‘Significant Risk’ / Stock Price Rises / ACC’s ‘NIVA’ Product / Hunt Expands CRE Lending Imprint

In other words, Ocwen should have told shareholders that there was an MOU with the MMC.


May 16, 2017 - IMFnews

FHFA Acting Deputy Director Bob Ryan Gives a Few Details on Watt’s ‘Capital Buffer’ Plan: A Dividend Delay, Not an Elimination

Ryan went on to say it would be a limited buffer, but it should be large enough to help cover and avoid a draw...


May 12, 2017 - Inside FHA/VA Lending

PennyMac Now Allows Equifax’s VOE in Lieu of Tax Transcripts

PennyMac has announced that, effective immediately, for FHA, VA, Fannie Mae and Freddie Mac transactions, lenders may provide Equifax’s The Work Number verification of employment, or a written VOE from an equivalent income-verification company in lieu of tax transcripts for salaried borrowers. The Work Number is a user-paid VOE database acquired by Equifax in February 2007. The written VOE must have full income figures supporting the qualifying income, said PennyMac. For all loans closed on or after June 15, 2017, the 2016 tax transcript will be required, unless the file contains evidence an extension was filed along with a copy of the Internal Revenue Service notice for 2016 showing “no record of return filed.” For all loans closed on or after Dec. 15, 2017, 2016 tax returns and tax transcripts will be required. PennyMac reminded lenders that its underwriting system cannot respond to ...


May 12, 2017 - IMFnews

What We’re Hearing: Mel Watt: Not on My Watch / Sen. Corker’s $10B Experiment with the People’s Money / Sen. Elizabeth Warren, Arrogant? / Will Pershing Square and Fairholme Win the Bet? / Wells Fargo Readies Jumbo MBS / Ocwen Needs More Time

Several trade groups, investors and analysts quickly issued their take on Watt’s comments, but there were some notables missing in action: Pershing Square and Fairholme.


May 12, 2017 - Inside MBS & ABS

GSEs Continue Shrinking Their Portfolios In Early 2017, Mostly Through MBS Sales

Fannie Mae and Freddie Mac continued to shrink their retained investment portfolios in the first quarter of this year by focusing on paring their MBS holdings. The two government-sponsored enterprises held a combined $560.04 billion in their retained mortgage portfolios at the end of March. That was down 1.9 percent from the previous period and 16.7 percent below year-ago levels. At their current pace, Fannie and Freddie are...[Includes one data table]


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