Fannie Mae estimates that it could securitize $200 billion in jumbo loans by the December expiration date of its temporary authority to purchase higher-balance mortgages that exceed the $417,000 conforming loan limit. However, the government-sponsored enterprise cannot use the "to-be-announced" market to securitize these higher-balance loans. So secondary-market executives are fretting that investors will demand higher yields and the interest rate on the GSE jumbo loans might not be low enough to get homeowners to refinance. But researchers at Friedman Billings Ramsey Investment Management point out that the differentials between GSE mortgage interest rates and nonagency mortgage interest rates are the "highest ever." And they say they expect the GSE jumbo programs to "inspire active refinancing of eligible nonagency mortgage loans." Meanwhile, Freddie Mac is gearing up to launch its jumbo program. The GSE wants to provide lenders with 90-day forward pricing and credit terms so that eligible borrowers can lock in rates as early as April. "That is the goal we are working towards," said Freddie spokeswoman Sharon McHale. The two mortgage giants can be found online at http://www.fanniemae.com and http://www.freddiemac.com.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
4h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
8h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
11h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24