Secondary markets

Two online ads promise Fannie Mae and Freddie Mac are working to boost purchase applications but it's unclear whether they signal interest in a stock offering.

The big three's trade group has said they operate legally and protect the industry with a trio of reports. FHFA also is opening up VantageScore for all lenders.

Merging Fannie Mae and Freddie Mac may not be possible but there is a variation that maintains competition and adds efficiency, according to one shareholder.

Bank of America Securities research shows this sector has had its best year since at least 2017, but some trends in the market point to a need for caution.

The Mortgage Bankers Association lowered its refi expectations by 5% this month, as rising mortgage rates are dampening borrowers' positions.

The latest investor statements show the persistence of a trend in which one vintage has a higher rate of distress than others, Morningstar DBRS finds.

On Aug. 14, over 30% of the loans sent to Fannie Mae and Freddie Mac from each company were scored using VantageScore 4.0.

So far, annual home lending growth is on track to slow, but not stop, with some positive developments surfacing amid broader challenges.

Jon Oksenholt, who holds more of Freddie's shares, recently took issue with a Pershing Square assessment of the two government-sponsored enterprises.

Homeowners won't trade in their cheap mortgages so lenders keep finding other ways to reach that equity. Bond buyers keep showing up.

The company's affiliate has been issuing non-QM deals that include a small percentage of second liens, some of which also involve alternative documentation.

Lenders reported July declines of HECM endorsements and new securities issuances, but proprietary lending drove a 28% year-over-year surge in originations.

The real-estate investment trust affiliate has been focusing on making more funding available for new loans but also seeks to hold the line on credit quality.

Fannie Mae and Freddie Mac are under directives to make mortgage-backed securities purchases that can exert downward pressure on rates or limit increases.

Positive changes in credit provisions contributed to a multiyear high in net income as the GSE and its rival fought to purchase lenders' single-family loans.

The Congressional Budget Office's latest read on loan and guarantee costs points to the risks and value of government-sponsored enterprises in conservatorship.

So far this year, the volume of closed-end second and home equity line of credit securitizations is near last year's $29 billion, Bank of America Securities said.

Economists at the government-sponsored enterprise have been lowering their single-family origination volume estimates for several months.

However, for the second quarter, increased home purchase mortgage activity contributed to an industry-wide 11% increase in agency securitizations, BTIG said.

OceanFirst Financial worked with an asset manager to apply the structure to a $1.5 billion portfolio of residential mortgages.