Fannie Mae

$525B in Multifamily Loans Will Mature Through 2029, Reports Yardi Matrix

Retrieved on: 
Thursday, March 14, 2024
CMBS, Freddie Mac, Database, Growth, Matrix, HUD, Investment, Housing, Fannie Mae, Commercial property

SANTA BARBARA, Calif., March 14, 2024 /PRNewswire/ -- The multifamily market has 58,533 properties with loans set to mature over the next five years, representing $525 billion of the total $1.1 trillion of loans currently backed by apartments, according to a new special report from Yardi® Matrix.

Key Points: 
  • More than half of the multifamily loans found in Yardi Matrix's database, $641.8 billion (56.3 percent) was originated by Fannie Mae and Freddie Mac.
  • Read the latest Multifamily Loan Maturity report from Yardi Matrix.
  • Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate.
  • Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types.

Fannie Mae Announces Winner of its Latest Non-Performing Loan Sale

Retrieved on: 
Tuesday, March 12, 2024
BofA Securities, UPB, BPO, Minority, FNMA, Sale, Fannie Mae, OTCQB, LP, Auction

WASHINGTON, March 12, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-third non-performing loan sale transaction.

Key Points: 
  • WASHINGTON, March 12, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-third non-performing loan sale transaction.
  • All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including forbearance arrangements and loan modifications.
  • In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.
  • Fannie Mae will also post information about specific pools available for purchase on that page.

The impact of regulatory changes on rating behaviour

Retrieved on: 
Tuesday, April 2, 2024
Długosz, Disagreement, Pi bond, Direct lending, Key, Research Papers in Economics, Finance Secretary (India), University of Oxford, STS, Journal of Economic Perspectives, International, American Economic Review, Life, Columbia Business School, British Academy of Management, Risk assessment, ABS, Rating, EBA, Development, Reputational damage, OBS, CRA, Bond credit rating, Cras, Journal of Monetary Economics, CDO, Becker, Paper, 2007–2008 financial crisis, Raja, University, Environment, Journal of Financial Economics, Perception, H3, Website, Securitization, Working paper, Market, Collection, Total, European Banking Authority, Quarterly Journal of Economics, BBB, Whetten, Column, ESMA, European Journal, Issuer, Asset quality, Information revolution, Federal Reserve Bank, OLS, Statistics, PDF, Private, ECB, Surety, Weighted-average life, CCC, European Commission, Social science, Journal of Financial Stability, JEL, Real, Bias, Journal, Research, Classification, Certification, Commission, Credit, The Journal of Finance, Literature, Karel Škréta, European Central Bank, AA, Finance Research Letters, Origination (telephony), Monetary economics, Section 5, Xia, Kraft Foods, Government, AAA, Mukherjee, Finance, Deku, DOI, White, Risk, IOSCO, MBS, OECD, Wang, Section 4, University Challenge 2013–14, Section 3, Ashcraft, Financial management, Accounting, Financial economics, Fannie Mae, Conference, Pressure, Central bank, Griffin, University of Michigan, Systematic review, EPRS, Freddie Mac, Loan, BCBS, Palgrave Macmillan, R2, Microeconomics, Quarterly Journal, Financial statement analysis, The Japanese Economic Review, Christian Social Union (UK), Green, University of Huddersfield, PSM, Management, Security (finance), Security, Civil service commission, Private placement, American Economic Journal, GFC, Reproduction, IMF, Small business, Trustee, Data

Abstract

Key Points: 
    • Abstract
      We examine rating behaviour after the introduction of new regulations regarding Credit Rating
      Agencies (CRAs) in the European securitisation market.
    • There is empirical evidence of rating catering in the securitisation market in the pre-GFC period (He et al.,
      2012; Efing and Hau, 2015).
    • Competition among
      CRAs could diminish ratings quality (Golan, Parlour, and Rajan, 2011) and promotes rating shopping by
      issuers resulting in rating inflation (Bolton et al., 2012).
    • This paper investigates the impact of the post-GFC regulatory changes in the European
      securitisation market.
    • In 2011, in addition to the creation of
      European Securities and Markets Authority (ESMA), a regulatory and supervisory body for CRAs was
      introduced.
    • We examine how rating behaviours have changed in the European securitisation market after the
      introduction of these new regulations.
    • We utilise the existence of multiple ratings and rating agreements between
      CRAs to identify the existence of rating shopping and rating catering, respectively (Griffin et al., 2013; He
      et al., 2012; 2016).
    • We find that the regulatory changes have been effective in tackling conflicts of interest between issuers
      and CRAs in the structured finance market.
    • Rating catering, which is a direct consequence of issuer and
      CRA collusion, seems to have disappeared after the introduction of these regulations.
    • There is empirical evidence of rating catering in the securitisation market in
      the pre-GFC period (He et al., 2012; Efing and Hau, 2015).
    • Competition among CRAs could diminish ratings quality (Golan, Parlour,
      and Rajan, 2011) and promotes rating shopping by issuers resulting in rating inflation (Bolton et
      al., 2012).
    • This paper investigates the impact of the post-GFC regulatory changes in the European
      securitisation market.
    • In 2011, in addition
      to the creation of European Securities and Markets Authority (ESMA), a regulatory and
      supervisory body for CRAs was introduced.
    • We find that the regulatory changes have been effective in tackling conflicts of interest
      between issuers and CRAs in the structured finance market.
    • Rating catering, which is a direct
      consequence of issuer and CRA collusion, seems to have disappeared after the introduction of
      these regulations.
    • Investors who previously demanded higher spreads for rating agreements for a
      multiple rated tranche, did not consider the effect of rating harmony as a risk in the post-GFC
      period.
    • Regarding rating shopping, we find that the effectiveness of the changes has been limited,
      potentially for two reasons.
    • Additionally, we also find that rating over-reliance might still be an issue, especially
      Rating catering is a broad term and it can involve rating shopping.
    • They re-examine the rating shopping and rating
      catering phenomena in the US market by looking at the post-crisis period between 2009 and 2013.
    • Using 622 CDO tranches, they also observe the existence of rating shopping and the diminishing
      of the rating catering.
    • Firstly, our main focus is the EU?s CRA Regulation and its effectiveness in reducing
      rating inflation and rating over-reliance.
    • To the best of our knowledge, this paper is the first to
      examine the effectiveness of the EU?s CRA regulatory changes on the investors? perception of
      rating inflation in the European ABS market.
    • Hence, the coverage and quality of our dataset constitutes significant addition
      to the literature and allows us to test the rating shopping and rating catering more authoritatively.
    • The following section reviews the literature
      on securitisation concerning CRAs and conflicts of interest, and outlines the regulatory changes
      introduced in the post-GFC period.
    • Firstly, ratings became ever more important as the Securities and
      Exchange Commission (SEC) 5 began heavily relying on CRA assessments for regulatory purposes
      (i.e.
    • the investment mandates that highlight rating agencies as the main benchmark for investment
      eligibility) (SEC, 2008; Kisgen and Strahan, 2010; Bolton et al., 2012).
    • issuers) as one of the main explanations for the rating inflation (He et al., 2011; 2012; Bolton
      et al., 2012; Efing and Hau, 2015).
    • Bolton et al., (2012) demonstrate that competition
      promotes rating shopping by issuers, leading to rating inflation.
    • The last phase, CRA III, was implemented in mid-2013 and involves an additional
      set of measures on reducing transparency and rating over-reliance.
    • As mentioned above, rating inflation can be caused by rating shopping
      In order to be eligible to use the STS classification, main parties (i.e.
    • The higher the difference in the number of ratings for a
      given ABS tranche, the greater the risk of rating shopping.
    • Alternatively, the impact of the new
      regulations could be limited when it comes to reducing rating shopping.
    • This is because, firstly,
      the conflict of interest between securitisation parties is not necessarily the sole cause for the
      occurrence of rating shopping.
    • L is a set of variables (Multiple ratings, CRA reported, Rating agreement) that
      we utilise interchangeably to capture the rating shopping and rating catering behaviour.
    • Hence, issuers are incentivised to report the highest possible rating and
      ensure each additional rating matches the desired level.
    • All in all, our results suggest that
      the new stricter regulatory measures have been effective in tackling conflicts of interest and
      reducing rating inflation caused by rating catering.
    • Self-selection might be a concern in analysing the impact of the
      new measures and investors? response with regard to the rating inflation.
    • This
      result is in line with the earlier findings suggesting that regulatory changes have reduced investors?
      suspicion of rating inflation and increased trust of CRAs.
    • Conclusion
      Several regulatory changes were introduced in Europe following the GFC aimed at tackling
      conflicts of interest between issuers and CRAs in the ABS market.
    • Utilising a sample of 12,469
      ABS issued between 1998 and 2018 in the European market, this paper examined whether these
      changes have had any impact on rating inflations caused by rating shopping and rating catering
      phenomena.
    • We find that the
      effectiveness of the changes has been more limited on rating shopping potentially for two reasons.
    • Tranche Credit Rating is the rating reported for a tranche at launch.

PHH Mortgage Recognized by Fannie Mae as a 2023 Star Performer

Retrieved on: 
Monday, March 11, 2024
PALM, Fannie Mae, Ocwen, OCN, STAR, Transition, PHH, Housing, Airline

WEST PALM BEACH, Fla., March 11, 2024 (GLOBE NEWSWIRE) -- PHH Mortgage (“PHH” or the “Company”), a subsidiary of Ocwen Financial Corporation (NYSE: OCN) and a leading non-bank mortgage servicer and originator, today announced the Company achieved Fannie Mae’s 2023 Servicer Total Achievement and Rewards™ (STAR™) Performer recognition.

Key Points: 
  • WEST PALM BEACH, Fla., March 11, 2024 (GLOBE NEWSWIRE) -- PHH Mortgage (“PHH” or the “Company”), a subsidiary of Ocwen Financial Corporation (NYSE: OCN) and a leading non-bank mortgage servicer and originator, today announced the Company achieved Fannie Mae’s 2023 Servicer Total Achievement and Rewards™ (STAR™) Performer recognition.
  • PHH has earned STAR Performer recognition for three consecutive years.
  • STAR Performer recognition is reserved for top performing servicers within one or more of three STAR Performer categories: General Servicing, Solution Delivery, and Timeline Management.
  • “We’re honored to be recognized by Fannie Mae’s STAR program for excellence in mortgage servicing,” said Scott Anderson, Executive Vice President and Chief Servicing Officer of PHH Mortgage.

Cenlar Recognized by Fannie Mae as a STAR Performer in Solutions Delivery

Retrieved on: 
Wednesday, March 6, 2024
Legal, Insurance, Human Resources, Finance, Consulting, Banking, Accounting, Professional Services, Other Professional Services, Senior, Fannie Mae, Risk management, Overalls, FSB, SCF, STAR, Safety, Organization, Housing

Cenlar FSB was recognized by Fannie Mae as a STAR Performer in the Solutions Delivery category.

Key Points: 
  • Cenlar FSB was recognized by Fannie Mae as a STAR Performer in the Solutions Delivery category.
  • The award is part of Fannie Mae’s Servicer Total Achievement and Rewards™ (STAR™) Program , which recognized 32 mortgage servicers for their competency, capacity, and overall performance.
  • For more than a decade, Fannie Mae's STAR Program has honored high-performing mortgage servicers for their loan volume and portfolio composition, and for demonstrating leading practices to improve the housing industry.
  • Honorees in the Solutions Delivery category were chosen based on their ability to resolve delinquent loans and their effectiveness at managing their collections call center.

Regan Capital Launches the Regan Floating Rate MBS ETF (NYSE: MBSF)

Retrieved on: 
Wednesday, February 28, 2024
REIT, Finance, Professional Services, Residential Building & Real Estate, Construction & Property, Fannie Mae, OTC, Rate, Cantor Fitzgerald, Mortgage-backed security, Index, Government, Federal Reserve, Agency, ETF, Risk, Federal, Freddie Mac, Capital, Treasury, RMBS, Security (finance)

Regan Capital , an investment firm with $1.3 billion in assets under management, today announced the launch of the Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS).

Key Points: 
  • Regan Capital , an investment firm with $1.3 billion in assets under management, today announced the launch of the Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS).
  • MBSF can also act as a cash alternative to money market funds, due to its high yield and liquidity.
  • As a result, MBSF can perform in a variety of interest rate environments, and we believe it is interest rate neutral.
  • In 2020, Regan Capital launched the Regan Total Return Income Fund (RCIRX), a mutual fund which invests across the fixed income market with a focus on mortgage bonds.

Newrez Sweeps 2023 STAR Awards from Fannie Mae

Retrieved on: 
Monday, February 26, 2024
Technology, Construction & Property, Finance, Fintech, Banking, Professional Services, Software, Other Construction & Property, Residential Building & Real Estate, Fannie Mae, NMLS, Star Awards, DNA

Newrez LLC (“Newrez”), a leading nationwide mortgage lender and servicer, is proud to announce it has won three prestigious Fannie Mae STAR Awards for 2023 – General Servicing, Solution Delivery, and Timeline Management.

Key Points: 
  • Newrez LLC (“Newrez”), a leading nationwide mortgage lender and servicer, is proud to announce it has won three prestigious Fannie Mae STAR Awards for 2023 – General Servicing, Solution Delivery, and Timeline Management.
  • The STAR Program is designed to provide a comparative framework to benchmark mortgage servicers and recognize leadership in the industry.
  • Fannie Mae defines the categories as follows:
    General Servicing: Servicers are measured on the basis of their performance managing early term roll rates and investor reporting and accounting.
  • This achievement is the culmination of an exceptional year for Newrez, who in 2023:
    “Winning three Fannie Mae STAR Awards is a tremendous honor and a testament to the dedication and hard work of our entire team," said Baron Silverstein, President of Newrez.

ServiceMac Recognized by Fannie Mae as a 2023 STAR Performer Award Winner

Retrieved on: 
Wednesday, February 21, 2024
Residential Building & Real Estate, Construction & Property, Professional Services, Finance, Safety, STAR, First American, Fannie Mae

ServiceMac , an innovative mortgage subservicer and a member of the First American family of companies, today announced the company has been honored as a Fannie Mae 2023 Servicer Total Achievement and Rewards™ (STAR™) Performer award recipient in the General Servicing category.

Key Points: 
  • ServiceMac , an innovative mortgage subservicer and a member of the First American family of companies, today announced the company has been honored as a Fannie Mae 2023 Servicer Total Achievement and Rewards™ (STAR™) Performer award recipient in the General Servicing category.
  • Fannie Mae’s STAR Program recognizes high-performing mortgage servicers for competency, capacity and overall performance.
  • “We founded ServiceMac to eliminate all of the obstacles servicers face in maximizing their efficiency and managing portfolio risk, while providing superior customer service,” said Bob Caruso, president and CEO of ServiceMac.
  • ServiceMac supports mortgage servicing rights holders, master servicers, borrowers and subservicing needs with more effective and efficient servicing workflows.

Fannie Mae Prices $751 Million Connecticut Avenue Securities (CAS) REMIC Deal

Retrieved on: 
Thursday, March 7, 2024
Fannie Mae, News, Cantor, Disclosure, Wells Fargo, Morgan Stanley, CAS, StoneX Group Inc., BofA Securities, Bank of America, Minority, Citigroup, Bank

StoneX Financial Inc. ("StoneX") is the co-lead manager and joint bookrunner.

Key Points: 
  • StoneX Financial Inc. ("StoneX") is the co-lead manager and joint bookrunner.
  • Co-managers are BofA Securities, Inc. ("BofA"), Cantor Fitzgerald & Co. ("Cantor"), Citigroup Global Markets Inc. ("Citigroup"), and Morgan Stanley & Co, LLC ("Morgan Stanley").
  • To promote transparency and to help credit investors evaluate our securities and the CAS program, Fannie Mae provides ongoing, robust disclosure data, as well as access to news, resources, and analytics through its credit risk transfer webpages .
  • In addition to our flagship CAS program, Fannie Mae continues to transfer mortgage credit risk through its Credit Insurance Risk Transfer™ (CIRT™) reinsurance program.

Freedom Mortgage Wins Fannie Mae STAR Performer Award for 8th Year in a Row

Retrieved on: 
Thursday, March 7, 2024
Fannie Mae, Dream, Overalls, STAR, BOCA, Safety, FHA, Federal Housing Administration, Freedom, Housing, Real estate

BOCA RATON, Fla., March 7, 2024 /PRNewswire/ -- Freedom Mortgage, one of the largest full-service independent mortgage companies, and a top Department of Veterans Affairs (VA) and Federal Housing Administration (FHA) (government-insured) lender in the U.S., has received Fannie Mae's Servicer Total Achievement and Rewards™ (STAR™) Performer Award for the eighth straight year. Freedom Mortgage was recognized for excellence in General Servicing and for demonstrating operational effectiveness and measurable results to improve the housing industry.

Key Points: 
  • Freedom Mortgage was recognized for excellence in General Servicing and for demonstrating operational effectiveness and measurable results to improve the housing industry.
  • Freedom Mortgage is one of the top ten largest servicers in the U.S., according to Inside Mortgage Finance magazine (4Q23).
  • The company is proud to have serviced the mortgages of 2 million homeowners, representing over $460 billion in loans last year.
  • "Once again, we are extremely honored to be recognized by Fannie Mae," said Stanley C. Middleman, president and CEO of Freedom Mortgage.