Origination

The Federal Housing Finance Agency's recent allowance of a 3-month extension of CARES Act forbearances stands to upend the trend in plan exits.

While its net income declined annually for the second consecutive year, CEO Hugh Frater touted Fannie Mae’s resiliency in a record year for providing mortgage liquidity.

The offering went down to $14 from an anticipated $19 to $21 per share.

The company purchased $1.1 trillion of single-family mortgages and $83 billion of multifamily loans during 2020.

The cost associated with borrowing money to finance homes now appears more likely to remain stable rather than continuing to decline, which should eventually slow refinance activity.

The growing popularity of the company’s websites and apps has earned the company record profits during the fourth quarter, with adjusted earnings before interest, taxes, depreciation and amortization of $170 million, according to a statement on Wednesday.

The reduction currently under consideration by the Biden Administration would lead to even faster home price appreciation, especially in areas with moderate FHA presence, American Enterprise Institute’s Housing Director of Research Tobias Peter says.

Volumes should rise this year but it could become more difficult to get loans for certain property types, the Mortgage Bankers Association said.

But the average amount for a purchase loan increased to an all-time high, showing the upper end of the housing market remains strong.

But the company sees reasons to be optimistic about the second half of the year, CEO and Chairman Michael Nierenberg said during its fourth quarter earnings call