Fed Becomes Mammoth Secondary Player
The U.S. government now has a big hand in the secondary mortgage market -- with billions of dollars in mortgage-related assets recently traded. Meanwhile, a Wells Fargo & Co. unit inked a deal with a group of community banks, and a division of First American Corp. has launched a service that fixes errors on adjustable-rate loan portfolios.
The Department of Housing and Urban Development intends to sell an unsubsidized multifamily mortgage loan with no Federal Housing Administration insurance in a competitive, sealed-bid sale, a Federal Register Notice last month said.
A sale of the non-performing loan -- secured by a Columbus, Ohio, property -- was expected to close last week.
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Fannie Activity Deteriorates
New business acquisitions again sank to their lowest level on record last month at Fannie Mae -- contrasting results at secondary rival Freddie Mac. Fannie's delinquency worsened as its book of business declined.
Fannie Increases Fees
Fannie Mae has increased its pricing adjustments on some programs.
Freddie Purchases, Portfolio Higher
Aside from worsening delinquency, Freddie Mac had strong activity last month.
Fannie Tightens DTIs, Credit Scores
Fannie Mae will begin requiring minimum credit scores on government mortgages it acquires. In addition, the secondary lender has instituted a new maximum debt-to-income ratio on manually underwritten conventional loans.
Ginnie Volume, Share Surging
WASHINGTON, D.C. -- Driven by hungry foreign investors, the Government National Mortgage Association said it has become one of the principal players in the securitization market as virtually all securitization of private lending has stopped. But even with surging volume, the company's president said it has no plans to increase headcount.
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Merger Activity Strong
Two investment companies have purchased stakes in companies that capitalize on distressed mortgages. In other merger news, several financial institutions have acquisitions in the works.
Bayview Exec Altered MBS Loan Data
A former executive of Bayview Financial LP has been accused by federal prosecutors of defrauding secondary investors and earning nearly $3 million in the process.
Secondary Sources
Despite the U.S. Department of the Treasury's plan to abandon the acquisition of troubled mortgage assets, more than $5 billion in portfolios recently traded hands -- including a big servicing portfolio.
Fannie Performance Worse
Delinquency spiked and secondary purchases fell to the lowest level in more than seven years at Fannie Mae.
