Move lawsuit against Zillow clears contempt hurdle with settlement

Move lawsuit against Zillow clears contempt hurdle with settlement

Move declares "full steam ahead" in prosecution

Twitter roundup of this week's top housing articles

CFPB heads up the list

Shaky housing market about to get even shakier

When will we all stop kidding ourselves?

GSE market share increases in 1Q

/ Print / Reprints /
| Share More
/ Text Size+
The government-sponsored enterprises’ market share of mortgage-backed securities rose in the first quarter although Ginnie Mae’s market presence fell, the Federal Housing Finance Agency said Friday. Mortgage originations dropped 35% to $325 billion in the first quarter, down from $500 billion in the first quarter with Fannie Mae, Freddie Mac and Ginne Mae accounting for 97% of MBS issuance, the FHFA said. Of that, Fannie or Freddie guaranteed 75% of all single-family mortgages securitized during that period.That's up from a low of 44% in 2006 during the height of the housing bubble. (Click on charts to expand.) This drop in originations is attributed partly to higher mortgage rates, FHFA said in its first-quarter conservator's financial report. Private-label issuers have not returned to the secondary mortgage market in any significance since mid-2007. The GSEs and Ginnie Mae continue to account for almost all MBS issuances. New deals getting to market in the first quarter involved mostly high-quality loans with borrower FICO scores higher than 750. Activity in the subprime segment remained anemic, as the GSEs continued buying higher quality mortgages. The average loan-to-value ratio remained at or below 70% at both Fannie and Freddie. The increase in the percentage of new business with LTVs greater than 90% primarily relates to the Home Affordable Refinance Program, according to the FHFA report. Serious delinquency rates remain high for the single-family credit guarantee portfolios, but these rates are trending down as delinquent loans are resolved through loss-mitigation activities or foreclosure. Nontraditional and higher-risk mortgages, which account for a relatively small portion of the credit guarantee portfolios, continue to show substantially higher serious delinquency rates than traditional mortgages. For Freddie Mac, interest-only loans accounted for 17.9% of seriously delinquent loans while Alt-A loans accounted for 11.9%. Alt-A loans were 13.5% seriously delinquent at Fannie with 17.1% of interest-only loans  seriously delinquent there, according to the report. Treasury Department support for the GSEs in first quarter one totaled $8.5 billion, all of which was allocated to Fannie. Last year, the GSEs projected they would draw somewhere between $33 billion to $70 billion from the Treasury for the second half of 2010 and the first quarter of 2011. In reality, the GSEs drew much less, taking only $14 billion from the Treasury during both periods due to fewer than expected nonperforming loans and mortgage defaults. Write to: Kerri Panchuk.

Recent Articles by Kerri Panchuk

Comments powered by Disqus