FHFA is looking to reduce capital requirements for the GSEs’ issuance of commingled securities. Some are happy with the agency’s plan, while others argue that no capital requirements are necessary.
Freddie Mac saw a big fourth-quarter increase in Supers issuance that appeared to make up for lost ground earlier in the year. All three agencies posted declines in new REMIC production in the fourth quarter. (Includes two data charts.)
Even though the upfront fee Fannie and Freddie impose on commingled securities has been sharply reduced, some industry watchers argue that it has permanently damaged the market for Supers and REMICs.
FHFA is working on an alternative to the single counterparty fee, triggered by a controversial provision in the new capital rule, that requires the GSEs to hold capital against one another as counterparties.
Fannie’s deemed-issuance ratio for 2022 dropped as the government-sponsored enterprise accounted for a lower share of deliveries to UMBS; MISMO is working to standardize the bid-wanted in competition dataset format.
Will prepayment speeds on agency product continue to decline? No one knows for certain, but the UMBS 2.5 is waiting in the wings to be the new kid in town.
It will be the 11th issuance of its type by loanDepot.
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