Tag Archives: Freddie Mac

According to the American Enterprise Institute's (AEI) latest National Mortgage Risk Index, the share of home purchase loans at risk of going sour in the event of an economic downturn fell nearly half a percentage point last month to 11.44 percent. According to the group, the risk value of loans securitized in Fannie and Freddie's portfolios fell slightly to 5.8 percent, while the risk index for FHA slipped to 23.6.

Freddie Mac's mortgage portfolio shrank in June at its slowest pace so far this year as new business hit a six-month high. The mortgage giant reported in its June volume summary that its total portfolio declined at an annualized rate of 0.1 percent, down from May's contraction rate of 2.1 percent and bringing the monthly growth average to -2.0 percent.

Economic growth so far this year has been "bittersweet" as housing takes a backseat in moving the recovery forward, Freddie Mac said Monday in its July 2014 Economic and Housing Outlook. But with employment bouncing back and household formations expected to improve, all is not last, says Freddie Mac VP and chief economist Frank Nothaft.

Freddie Mac released Thursday the results of its latest Primary Mortgage Market Survey, showing the average 30-year fixed-rate mortgage (FRM) coming in at an interest rate of 4.13 percent (0.6 point) for the week ending July 17. Bankrate.com's survey was similarly flat, with both the 30- and 15-year fixed averages falling 1 basis point each.

The Federal Housing Finance Agency (FHFA) released a draft for new eligibility requirements for private mortgage insurers who insure mortgage loans owned or guaranteed by Fannie Mae and Freddie Mac. The agency is seeking comments on the draft and will accept input through September 8.

Representatives John K. Delaney (D-Maryland), John Carney (D-Delaware), and Jim Himes (D-Connecticut) introduced Thursday new housing finance reform legislation aimed at winding down Fannie Mae and Freddie Mac and replacing them with a federally backed insurance program administered through Ginnie Mae.

Signs of a healing—though still depressed—jobs market provided some slight lift to mortgage rates this week, market data shows. In its weekly Primary Mortgage Market Survey, Freddie Mac recorded the average 30-year fixed rate at 4.15 percent (0.7 point) for the week ending June 10, up from 4.12 percent in last week's survey. A year ago, the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent following a spike in late June.

On Wednesday, the Urban Institute (UI) issued a report finding that, based on the latest numbers, Ginnie's book of business is now at $1.5 trillion—a rate of growth that has tripled over the last seven years. What this means is that at its current rate of growth, Ginnie Mae will soon surpass Freddie Mac as the silver medalist in the single-family mortgage securitization platform game, behind Fannie Mae.

According to Freddie Mac's Primary Mortgage Market Survey, the average interest rate for a 30-year fixed-rate mortgage (FRM) product was 4.12 percent (0.5 point) for the week ending July 3. Rates remained down year-over-year for the second straight week, "which should provide some help with homebuyer affordability in many markets," said Frank Nothaft, chief economist for Freddie Mac.

As scrutiny continues to grow in the servicing arena, the watchdog for the Federal Housing Finance Agency (FHFA) says it has concerns about non-bank servicers working with GSE loans. Out of the 30 largest servicers, FHFA OIG says that non-banks held a 17 percent share of mortgage market as of the end of 2013, representing nearly $1.7 trillion. As a result, the report says these non-bank companies may have taken on more volume than they can handle.