Fannie Mae has announced the introduction of Benchmark REMICs, a multiclass real estate mortgage investment conduit security with enhanced structural, price transparency, and liquidity features for fixed-income investors.The company said it expects to issue the first Benchmark REMIC in this quarter and up to two deals per quarter thereafter. Fannie said the securities will have four characteristics designed to improve liquidity and price transparency: syndicated dealer distribution; a large Guaranteed Maturity Class, with a stated final maturity; a minimum new-issue size of $1 billion for each GMC; and live price quotes on TradeWeb for the GMCs. The securities will generally be collateralized by pools of Fannie Mae fixed-rate, first-lien, single-family mortgages. Peter Niculescu, executive vice president for capital markets, said the move "should help us better serve our affordable housing mission by attracting more capital to the U.S. housing market through broadened distribution of Benchmark REMICs to a potentially more diverse mortgage investor base globally." Freddie Mac introduced a similar program, Reference REMICs, last year.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
3h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
7h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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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.
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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.
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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