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Fannie Mae’s Multifamily Investment Totals $5.9B in First Half of 2010

In the first half of 2010, Fannie Mae provided $5.9 billion in investments to the multifamily rental housing market, according to a semiannual report released Tuesday. The multifamily unit at Fannie Mae said it has bolstered mortgage-backed securities (MBS) issuance since focusing its efforts on securitization and broadening the investor base in 2009. Of the $5.9 billion invested in the first of this year, $5.5 billion was delivered through MBS execution.

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Fitch Says Maturing CMBS Loans Face Rocky Road Ahead

August is expected to be a challenging month for maturing commercial mortgage-backed securities (CMBS) loans. According to Fitch Ratings, eight U.S. CMBS loans with balances greater than $20 million that are scheduled to mature next month are likely to default. Two-thirds of these Fitch-rated loans were originated in 2005 and typically had five year terms, little to no amortization, and below market coupons, which will likely result in an increase in maturity defaults in today's higher mortgage rate environment with stricter underwriting standards, Fitch said.

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Administration to Host August Conference on Housing Finance Reform

The Obama administration said Tuesday that it plans to deliver a proposal for housing finance reform to Congress by January 2011. Government officials will hold a conference on August 17 at the Treasury building in Washington D.C. to solicit input from industry stakeholders on the future of the housing finance system, Fannie Mae, and Freddie Mac. The White House says the ""heads private shareholders win, tails taxpayers lose"" structure at the GSEs makes no sense for the nation...and change is coming.

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FDIC Taps Secondary Market to Sell $409M in Failed Banks’ Home Loans

The FDIC has amassed a large portfolio of nonperforming real estate loans seized from failed banks. While the agency has managed to broker deals with most acquiring institutions recently to absorb ""essentially all"" of the failed banks' loans, some transaction announcements still contain the language, ""the FDIC will retain the remaining assets for later disposition."" In order to fast-track the sale of these assets, the FDIC is turning to the secondary market, with an offering of $409 million of mortgage bonds from 17 bank closings expected to price mid-week.

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Freddie Mac’s Delinquency Rate Falls Below 4%

The number of past due home loans guaranteed by Freddie Mac has fallen below the 4 percent threshold. The milestone is a sign that the performance of the GSEs' loan portfolio is improving and loss mitigation efforts are having an impact, considering Freddie endured three long years of delinquency increases until March of this year. The company's latest report shows that the number of single-family mortgages at least three months past due or in foreclosure stood at 3.96 percent at the end of June. That's down from a high of 4.20 percent as recently as February.

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Next on the Administration’s Agenda: the GSEs

Now that the Obama administration can claim victory in passing financial regulatory reform, it's setting its sights on restructuring the housing finance system, namely the GSEs. The White House says it will put forth a formal proposal by early next year, and some say its focus will be a departure from the age-old adage of homeownership as everyone's ""American Dream,"" and shift support for the housing market from Fannie Mae and Freddie Mac to the private sector. One thing is for sure, change is coming for the nation's two largest mortgage companies.

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MBA Appoints AVP of Commercial Servicing and Council Coordinator

The Mortgage Bankers Association (MBA) recently named Kathy Marquardt AVP of commercial servicing and council coordinator. This appointment will become effective August 9, 2010. In her new role, Marquardt will serve as MBA's expert on commercial real estate loan servicing issues, and she will coordinate all commercial business activities.

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House Probe Uncovers 153 VIP Countrywide Loans to Fannie Execs

A federal investigation has exposed ties between Fannie Mae executives and Countrywide's controversial ""Friends of Angelo"" VIP loan program. Documents subpoenaed by Rep. Darrell Issa revealed that 27 former employees at the government-sponsored mortgage company received 153 subsidized, low-cost loans through the Countrywide program - a program that Issa says existed to buy friends in critical government and industry positions affecting the company's business interests.

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Deutsche Bank Fined $7.5M for Concealing Subprime Delinquencies

The Financial Industry Regulatory Authority. (FINRA) has fined Deutsche Bank Securities Inc. $7.5 million for negligently misrepresenting delinquency data in connection with the issuance of subprime securities. The independent securities regulator found that Deutsche Bank misstated and underreported the percentages of mortgages that were delinquent in the prospectus supplements of six subprime residential mortgage backed securities (RMBS) issued in 2006, worth approximately $2.2 billion.

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