Secondary markets

"The quality of our new business is high. The pricing of that business does not reflect the capital requirements of our regulatory rule," CEO Hugh Frater said.

However, leadership noted that 2021 was the second record year for new single-family mortgages and also discussed how the government sponsored-enterprise plans to further rebuild its capital.

The return of foreclosures could increase enforcement and government-related loan buyers’ return to pre-pandemic plans to increase net worth, liquidity and other standards for counterparties.

The mention echoes previous recommendations to give the Federal Housing Finance Agency more authority over non-depositories that service loans sold to Fannie Mae and Freddie Mac.

The large volume of servicing rights trades in January and high multiples were a reaction to tightening monetary policy after a period in which many stockpiled the asset.

The company said the bond issue is the largest ever seen in this asset class and was boosted by rising home values.

Congress waited too long to address the out-of-control housing market, leading to a crisis in 2008. Now, with home prices soaring and the government-sponsored enterprises' portfolios at record levels, lawmakers are in danger of repeating that mistake.

This regulatory development is both good news and bad news, depending upon where you happen to sit in the mortgage process.

The government-sponsored enterprise is following through on resolving some temporary policies put in place to address contingencies around the coronavirus while unwinding others.

Zanin, a former GE Capital executive, became chief risk officer at the government-sponsored enterprise only one year ago.

If approved, the new loan would unlock $120 million in badly needed funds for the sprawling Bronx multifamily complex.

The number of credit-sensitive borrowers who request alterations in their loan terms for income reduction could be a bellwether for loan performance as pandemic-related contingencies are rolled back.

Efforts aimed at modernizing outdated sets of PLS mortgage information could facilitate electronic transmissions and benefit lenders looking to broaden opportunities for secondary market sales.

In addition to hinting at a March rate hike, the central bank this week announced an intention to have Treasury securities make up a greater share of its holdings, which has implications for securitized home loans.

New player Tomo is entering this niche while a trio of established players enhance their existing offerings for their third-party channels.

The company will leverage its diversified consumer-finance model while optimizing a traditional mortgage business with thinner margins as the business cycle turns, CEO Patti Cook said.

Due to the rollback in stimulus and uncertainties related to other mortgage policy measures and rates, servicers are moving into uncharted waters, according to a Fannie Mae economist.

The change aims to streamline the processing of certain pandemic-related loan options that accommodate lower monthly payment amounts for borrowers with long-term economic hardships.

The researchers found that the disparities that emerged from the analysis of 1.8 million appraisals from 2019 and 2020 were statistically significant.

Home valuation professionals have had mixed feelings about automation out of concern that some forms could result in less accurate assessments.