Freddie Mac

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

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The Consumer Federation of America agreed that the FICO score used by Fannie and Freddie is outdated and amounts to a monopoly on scoring.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 - 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 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

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

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

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 - 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 - 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

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 - 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...


April 4, 2018 - IMFnews

Short Takes: Bill Ashmore Working on a Non-QM Startup? / The Mood in New Jersey / The White House Role in Relaxing Standards? / How to Aid in the Construction of Housing / Wells Promotes Hilzendeger to New Mortgage Post

If President Trump – a builder by trade – truly wants to help the housing market by adding inventory he could order the federal government to sell some of its massive holdings of land to builders at dirt cheap prices...


April 3, 2018 - IMFnews

Fannie/Freddie Shareholders Continue to File Lawsuits Challenging Treasury Sweep

The company said it made the investments because it believed in the future economic prospects of the companies…


April 3, 2018 - IMFnews

JPM Readies Non-Agency MBS Backed by Loans Eligible for Sale to the GSEs

The loans in Chase's new MBS have an average balance of $527,877.


April 2, 2018 - Inside the CFPB

Thanks to the GSE ‘Patch,’ GSE HLTVs Increased Noticeably

Fannie Mae and Freddie Mac in the second half of last year saw a rapid growth of loans with high debt-to-income ratios, thanks in part to the so-called GSE patch. The government-sponsored enterprises enjoy a special exemption under the qualified mortgage rule of the Consumer Financial Protection Bureau. To achieve QM status, a loan must have a DTI ratio of 43 percent or less, but if a mortgage is sold to Fannie or Freddie, DTI ratios can be higher. In the second half of 2017, loans with DTI ratios ...


April 2, 2018 - IMFnews

Apathy Setting in on GSE Legislation. Industry Focus Shifts to Reg Reform

Cowen & Co. recently updated its forecast on GSE reform passing this year, slashing the odds to just 10 percent.


March 30, 2018 - Inside The GSEs

GSE Roundup

Fannie Announces Community Impact NPL Winners. Fannie Mae announced this week that the winning bidder for its 11th and 12th Community Impact pools of non-performing loans was VRMTG ACQ, LLC (VWH Capital Management, LP), a minority- and woman-owned business. The transaction is expected to close on May 22, 2018, and includes approximately 182 loans totaling $34.25 million in unpaid principal balance, divided between two pools focused in the Orlando and Tampa areas of Florida. GSE Foreclosure Preventions Surpass 4M. The Federal Housing Finance Agency reported this week that the GSEs completed 67,569 foreclosure prevention actions in the fourth quarter of 2017, bringing the total number of homeowners helped to 4.04 million since 2008. But, thanks to the fall...


March 30, 2018 - Inside The GSEs

GSE Shareholders Continue to File Lawsuits Against Treasury Sweep

More Fannie Mae and Freddie Mac shareholders have initiated lawsuits against the government for the Treasury sweep of the mortgage giants’ profits. Each of the plaintiffs in the three new cases were owners of the GSEs’ junior preferred stock. The cases, Akanthos v. U.S., CSS v. U.S. and Appaloosa v. U.S., have been assigned to Judge Margaret Sweeney, who is also handling other similar complaints. They were filed in the U.S. Court of Federal Claims. According to court documents, Akanthos Opportunity Master Fund owned more than $137 million in junior preferred stock as of Aug. 16, 2016. Akanthos complained of suffering from “severe economic loss” to its holdings.


March 30, 2018 - Inside The GSEs

OIG Wants FHFA to Address Fraud-Reporting Disparities

The Federal Housing Finance Agency Office of Inspector General worries that the GSEs aren’t reporting potential fraud in a timely manner as their statute stipulates.In a recent audit, the IG reviewed the FHFA’s oversight of how Fannie Mae and Freddie Mac report fraud. They found a possible disparity between the fraud- reporting requirement in the statute and the FHFA’s regulation and guidance. The FHFA’s definition of fraud appears to have a higher reporting threshold, meaning it allows for more time before a report must be made. The GSE is expected to make a “timely report” to the...


March 30, 2018 - Inside The GSEs

Freddie Makes Income Verification Easier for Self-Employed Applicants

Self-employed borrowers will have an easier time applying for a mortgage as part of a new initiative from Freddie Mac and LoanBeam. Research shows that about 44 million in the U.S. are either self-employed or working for the self-employed. Last week, the GSE announced that calculating income for a self-employed borrower will be automated and simpler for those using Freddie’s automated underwriting system. The GSE said this will expedite the process by reducing the amount of time it takes to gather information. LoanBeam is a software solution that uses technology to extract data from tax documents to automatically calculate income. It does so by using optical character recognition technology.


March 30, 2018 - Inside The GSEs

Fannie Mae, Freddie Mac Common Testing New 52-Week Lows

Over the past few months, the share price of Fannie Mae and Freddie Mac common has steadily declined – along with the prospects for housing finance reform. As Inside The GSEs went to press this week, Fannie shares were trading for roughly $1.30. The mortgage giant’s 52-week high is $3.31, its low $1.25. Freddie’s common stock currently sells for $1.30. However, midweek, on Wednesday, Freddie lost 8.89 percent of its value with Fannie declining by 7.97 percent. In subsequent days, the prices improved somewhat. Both are traded on the Over-the-Counter market, having been kicked off the New York Stock Exchange.


March 30, 2018 - Inside The GSEs

HARP Loans Underperforming Compared to Recent Mortgages

Freddie Mac loans under the Home Affordable Refinance Program will continue to perform better than pre-crisis mortgages, which Moody’s said bodes well for credit-risk transfers with exposure to those loans, but they will underperform more recent loans. According to an analysis by Moody’s, HARP borrowers benefited from significant payment reductions, were already showing good performance, and are likely to be more credit savvy. Freddie loans originated in 2005-07 that went through HARP had a 60-plus day delinquency rate of just 1.14 percent, as of March 2017. Moody’s said that’s well below the 6.84 percent 60-plus day delinquency rate for loans in that same period that did not go through HARP. But, the delinquency rates for HARP loans are...


March 30, 2018 - Inside The GSEs

Uniform MBS Implementation Now Set for June 2019

The Federal Housing Finance Agency announced plans to officially launch the “common” uniform mortgage-backed security collateralized by Fannie Mae and Freddie Mac loans on June 3, 2019. The regulator confirmed the exact date this week after previously only revealing the common security would be issued in the second quarter of 2019. The new UMBS will replace the current offerings of to-be-announced-eligible MBS and will be issued through Common Securitization Solutions, a joint venture equally owned by Fannie and Freddie. The Bethesda, MD-based CSS has been working on the project for several years now at a cost of hundreds of millions of dollars.


March 30, 2018 - Inside The GSEs

GSE Initiatives Give Housing Counselors Underwriting Access

Fannie Mae and Freddie Mac both have initiatives that link homebuyer education counselors to their automated underwriting tools to better determine a buyer’s homeownership readiness. The Federal Housing Finance Agency this week released its 2017 Scorecard Progress Report detailing work on strategic goals for the duo. Under the goal of maintaining credit access, the FHFA said the GSEs have been exploring ways to improve the effectiveness of pre-purchase and early delinquency counseling. Last month, Fannie, the Housing Partnership Network and other housing counseling agencies announced plans to develop a new client case management system. This system will connect Fannie’s automated underwriting products, Desktop Originator and Desktop Underwriter, to housing counseling agencies.


March 30, 2018 - Inside The GSEs

Private MIs Respond to Spike in High-DTI Loans in Late 2017

There was a significant increase in deliveries to the GSEs of home loans with high debt-to-income ratios during the second half of 2017, according to a new Inside The GSEs analysis of Fannie Mae and Freddie Mac single-family mortgage-backed securities.The two GSEs securitized $52.90 billion of mortgages with DTI ratios ranging from 46 percent to 50 percent over the last six months of the year. That was up 72.6 percent from the first half of 2017, and the annual total was up 37.6 percent from 2016.


March 30, 2018 - IMFnews

What We’re Hearing: Not Much Time Left for the GSE ‘Gang of Four’ / Don (Heart) Fannie and Freddie / Go Ahead, Keep on Suing / Why Join a Company That’s in Conservatorship? / CoreLogic Reduces its Head Count / CMLA Not Amused

At yearend 2017, CoreLogic employed 5,900, a reduction of 400 full-timers over the previous 12 months...


March 30, 2018 - IMFnews

GSE NPL Sales Tanked in 2017 – And That’s a Good Thing

The FHFA noted that the GSE NPL auctions are open to any qualified bidder…


March 29, 2018 - IMFnews

Fannie, Freddie Common Testing New 52-Week Lows

The U.S. Treasury controls the senior preferred shares of the GSEs, but has no positions in the common.


March 29, 2018 - IMFnews

Freddie Mac Taps CoreLogic’s Sam Khater as New Chief Economist

A spokeswoman for CoreLogic confirmed that Khater is leaving the company…


Poll

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.

35%

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

14%

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

12%

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

39%