Monday Morning Cup of Coffee: Ocwen settles "frustrating skirmish" with California

Zillow plans event to “hack” housing

Offers $10,000 prize for creative solutions to jumpstart market

CFPB goes after Wells Fargo, JPMorgan for mortgage kickback scheme

Mega banks will pay $35.7 million total


new REwired blog header
Opinion, commentary and analysis on everything that makes the U.S. housing economy tick -- not to mention the ghosts in the machine, too. Written by HW's team of editors and reporters each business day.
Investments / Lending

Fannie whole loan conduit delivers doses of liquidity

July 30, 2013


Fannie Mae’s single-family whole loan conduit is designed to provide liquidity to the mortgage market.

The government-sponsored enterprise’s whole loan conduit, also known as the Cash Commitment Window, allowed nearly 1,100 small and mid-sized lenders to deliver loans to the enterprise in exchange for cash in 2012, according to a blog from Fannie Mae executive Renee Schultz, who serves as senior vice president of capital markets single-family products and business initiatives.

By offering competitive pricing and flexibility in committing, Fannie Mae makes such an execution easy to lenders, while also providing lenders with an opportunity to retain servicing rights for the loans they have delivered, Schultz explained in her post.

The program also offers investors a chance to obtain diversified pools of mortgages.

In recent years,  a larger percentage of Fannie Mae mortgage-backed securities issuance has come from the whole loan conduit, particularly following the housing meltdown.

Overall, the whole loan conduit offers benefits to small and mid-sized lenders—namely immediate funding and flexible commitments, Schultz explained.

Comments powered by Disqus