Freddie Mac

HOME AFFORDABILITY IMPROVES SLIGHTLY ACROSS U.S. DURING FIRST QUARTER BUT REMAINS DIFFICULT FOR AVERAGE WORKERS

Retrieved on: 
Thursday, March 28, 2024
Tax, Bureau, Insurance, Freddie Mac, Guideline, Food delivery

IRVINE, Calif., March 28, 2024 /PRNewswire/ -- ATTOM, a leading curator of land, property, and real estate data, today released its first-quarter 2024 U.S. Home Affordability Report showing that median-priced single-family homes and condos remain less affordable in the first quarter of 2024 compared to historical averages in more than 95 percent of counties around the nation with enough data to analyze. The latest trend continues a pattern, dating back to 2022, of home ownership requiring historically large portions of wages around the country.

Key Points: 
  • "The picture for home buyers is brightening a little again as affordability measures have improved for the second quarter in a row," said Rob Barber, CEO for ATTOM.
  • Affording a home remains a financial stretch, or a pipe dream, for so many households.
  • The upcoming Spring buying season will say a lot about whether home prices remain stable enough for this trend to continue."
  • Average 30-year fixed interest rates from the Freddie Mac Primary Mortgage Market Survey were used to calculate monthly house payments.

Fairway Independent Mortgage Corporation Increases Its Use of Digital Closings

Retrieved on: 
Wednesday, March 27, 2024
SVP, Tree, Paper, Freddie Mac, EMortgage, J.D. Power, Fairway, Fannie Mae, Digital, Real estate

MADISON, Wis., March 27, 2024 /PRNewswire/ -- Fairway Independent Mortgage Corporation, named #1 for customer satisfaction among mortgage origination companies in the J.D.

Key Points: 
  • MADISON, Wis., March 27, 2024 /PRNewswire/ -- Fairway Independent Mortgage Corporation, named #1 for customer satisfaction among mortgage origination companies in the J.D.
  • Power 2023 U.S. Mortgage Origination Satisfaction Study, is now the top user of digital closings among independent mortgage banks in the industry.
  • Fairway defines digital closings as any involving a digital or electronic signature, and the company is now the top independent mortgage bank for eMortgages for purchase transactions with Fannie Mae and Freddie Mac.
  • "85% of all closings with Fairway have a digital component," said Teri Pansing, Fairway's SVP of Corporate Closing.

The National Association of Mortgage Brokers Hosts 33rd Annual Legislative & Regulatory Conference

Retrieved on: 
Tuesday, March 26, 2024
Second Continental Congress, Congress, Conference, FHFA, UnidosUS, National Housing Conference, National Association, Capitol, Freddie Mac, Mortgage broker, HUD, Real estate

WASHINGTON, March 26, 2024 /PRNewswire-PRWeb/ -- The National Association of Mortgage Brokers (NAMB), the first and only membership-led and volunteer-driven organization representing the interests of mortgage brokers and home buyers since 1973, is pleased to invite its members and all mortgage professionals to attend its 33rd annual Legislative & Regulatory Conference in Washington D.C. April 15-17, 2024.

Key Points: 
  • Only volunteer-driven, national organization representing mortgage brokers to host members of the U.S. Congress, FHFA, HUD and additional national thought leaders
    WASHINGTON, March 26, 2024 /PRNewswire-PRWeb/ -- The National Association of Mortgage Brokers ( NAMB ), the first and only membership-led and volunteer-driven organization representing the interests of mortgage brokers and home buyers since 1973, is pleased to invite its members and all mortgage professionals to attend its 33rd annual Legislative & Regulatory Conference in Washington D.C. April 15-17, 2024.
  • "One of the many ways NAMB has delivered value to its members and the marketplace for 50 years is through its critical legislative & regulatory efforts.
  • To register for NAMB's Legislative & Regulatory Conference, please follow this link .
  • Conference attendees will hear directly from many lawmakers and regulatory leaders during the event including:

Miami-Dade Total Home Sales Rise for Second Consecutive Month

Retrieved on: 
Thursday, March 21, 2024
REO, Statistics, Partnership, Shock, NAR, Sale, News, MLS, Housing, Condo, Love, Census, CoreLogic, Multiple listing service, Freddie Mac, Property management

MIAMI, March 21, 2024 /PRNewswire-PRWeb/ -- Miami-Dade County total home sales rose year-over-year for the second consecutive month as new data shows South Florida leading the U.S. in price appreciation and international migration, according to February 2024 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

Key Points: 
  • Miami Distressed Sales Remain Low, Reflecting Healthy Market
    Only 0.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.8% in February 2023.
  • Short sales and REOs accounted for 0.06% and 0.9% year-over-year, respectively, of total Miami sales in February 2024.
  • Nationally, distressed sales represented 3% of sales in February, virtually unchanged from last month and the prior year.
  • Cash sales represented 43.3% of Miami closed sales in February 2024, compared to 43% in February 2023.

$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.

NAHREP Report Finds Hispanics Approach 50% Homeownership - Continued Growth Despite Soaring Interest Rates, Limited Inventory, and Affordability Crises

Retrieved on: 
Tuesday, March 12, 2024
Conference, Risk, SAN, Senior, Housing, Annual report, Community engagement, National Association, Freddie Mac, Government, Real estate

SAN DIEGO, March 12, 2024 /PRNewswire-PRWeb/ -- In 2023, the Hispanic homeownership rate grew to 49.5 percent, representing a significant milestone. Despite confronting what has been recognized as the most challenging housing market in terms of affordability on record, Latinos achieved a notable net gain of 377,000 owner-households, marking the largest single-year increase since 2005, spanning nearly two decades. Despite formidable obstacles such as soaring interest rates and dwindling housing inventory, resilience prevailed. Hispanic homebuyers demonstrated adaptability by relocating to more financially viable regions, leveraging co-borrowers in their financing arrangements, and capitalizing on specialized local programs, all contributing to realizing their homeownership aspirations.

Key Points: 
  • Despite facing unprecedented market conditions, Latinos have shown an unwavering commitment to homeownership and financial empowerment.," said Nuria Rivera, President of NAHREP.
  • In 2023, the Hispanic homeownership rate reached 49.5 percent, the largest increase in homeownership rate across racial or ethnic demographic groups compared to the year prior.
  • The Hispanic homeownership rate in 2023 marks a key milestone, as it nearly fully rebounds to its pre-housing crisis peak.
  • The conference includes panel discussions with key government and industry leaders, the release of the State of Hispanic Homeownership Report, and the NAHREP SOMOS Magazine and Annual Report.

NAHREP Homeownership and Wealth Building Conference Gathers in Washington, D.C.

Retrieved on: 
Monday, March 11, 2024
Community, Jim Gordon (character), Incoming, Learning Technology Partners, Conference, Assistant, Public housing, Transformation, Policy, Hope, Federal Housing Administration, JW Marriott Hotels, Advocacy, Housing, JPMorgan Chase, National Association, Freddie Mac, Century, Government, Chase, Fireside chats

SAN DIEGO, March 11, 2024 /PRNewswire-PRWeb/ -- The NAHREP Homeownership and Wealth Building Conference https://nahrep.org/springconference/agenda/ features federal housing and senior policy officials discussing present housing issues, including immigration reform, the housing inventory crisis, mortgage access and financial inclusion, commission compression, and more.

Key Points: 
  • The National Association of Hispanic Real Estate Professionals® (NAHREP®) celebrates the first day of its Homeownership and Wealth Building Conference sponsored by Chase, held March 11-13 at the JW Marriott in Washington, D.C.
  • "Together, we will explore the pivotal role Hispanics play in shaping the future of the housing market and our nation.
  • Despite challenges, this gathering represents an opportunity to unlock new pathways for Hispanic participation in homeownership, underscoring NAHREP's pivotal role as the platform for these transformative discussions."
  • For more information about the NAHREP Homeownership and Wealth Building Conference, including registration information and a full agenda, visit https://nahrep.org/springconference/register/
    Questions and Media registration contact:

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.

Freddie Mac Multifamily Apartment Investment Market Index Finishes 2023 Up Nationwide Despite Fourth Quarter Decline

Retrieved on: 
Monday, March 11, 2024
OTCQB, Growth, FAQ, Housing, FMCC, Freddie Mac, NOI, Video game

MCLEAN, Va., March 11, 2024 (GLOBE NEWSWIRE) -- The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index® (AIMI®) decreased in the fourth quarter of 2023, but increased over the full year, with the annual gain indicating that investment conditions were better in the fourth quarter compared with one year prior.

Key Points: 
  • MCLEAN, Va., March 11, 2024 (GLOBE NEWSWIRE) -- The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index® (AIMI®) decreased in the fourth quarter of 2023, but increased over the full year, with the annual gain indicating that investment conditions were better in the fourth quarter compared with one year prior.
  • Despite the fourth quarter dip, AIMI finished 2023 up for the year nationally and in the majority of regional markets.
  • “The end of 2023 was a tale of two directions for AIMI,” said Sara Hoffmann, senior director of Multifamily Research at Freddie Mac.
  • “The index finished 2023 up overall for the year, but fourth quarter was down across the board.

Mortgage Rates Dip Down

Retrieved on: 
Thursday, March 7, 2024
OTCQB, Freddy, FRM, Consumer, Housing, FMCC, Freddie Mac, Real estate

MCLEAN, Va. , March 07, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.88 percent.

Key Points: 
  • MCLEAN, Va. , March 07, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.88 percent.
  • “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s Chief Economist.
  • “Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market.
  • It’s important to remember that rates can vary widely between mortgage lenders so shopping around is essential.”
    The 30-year FRM averaged 6.88 percent as of March 7, 2024, down from last week when it averaged 6.94 percent.