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’Is the debt ceiling drama really all about the GSEs?
You’re looking at an excerpt from the 2008 Housing and Economic Recovery Act. That’s the thing which created the Federal Housing Finance Agency (FHFA), which is currently charged with regulating the US’s massive Government Sponsored Enterprises (GSEs),
Federal shadow housing inventory is getting bigger
A housing milestone, of sorts.
Federally-backed loans already make up a majority of the mortgages classified as ‘seriously delinquent’ in the US financial system. In other words, there are more soured loans held or backed by the US’s giant GSEs — Fannie Mae and Freddie Mac — plus the Federal Housing Administration (FHA),
Cembalest changes his mind on the subprime crisis
Here’s something you might have missed during last week’s (UK) holiday.
Michael Cembalest has made a retraction. JPMorgan’s private banking chief investment officer (and reportedly the only JPM-er who refused to do business with Ponzi-schemer Bernard Madoff,
The end of the home ownership “dream”
Government reports don’t normally make for interesting eulogies, but this one is an exception.
The Treasury-HUD report to Congress on the future of the US housing market is out and generating qualified praise (though little surprise).
Fixing the MBS market, improving QE2
Are you one of the gazillions of people not concerned by surging MBS fails?
Perhaps you should be.
Fails to deliver of Mortgage-Backed Securities (MBS) reached an all-time record late last month,
The Spitzer settlement for mortgages
Cast your minds back to early 2003.
Wall Street was still at war with the pre-Dupré, New York state attorney general Eliot Spitzer — a man hellbent on exposing financials’ conflicts of interest. On April 28 of that year,
Top of the bond yield to you
Yup. It seems there’s nothing stopping Irish bond yields racing higher on Wednesday.
Last check at about 2:42pm London time showed yields approaching a whopping 8.5 per cent. Meanwhile one of the Irish two-years was trading around 6.14 per cent.
Those money-guzzling GSEs
The Federal Housing Finance Agency, the US body charged with overseeing Fannie Mae and Freddie Mac after the two were placed into conservatorship in 2008, has released new projections for how much additional money the Government-Sponsered Enterprises will have to draw from taxpayers over the next three years.
Sarbanes-Oxley meets mortgage servicer execs
Oh Sarbanes-Oxley, you always come back to haunt financials, don’t you?
Sarbox, enacted in 2002 in response to corporate fraud at firms like Enron, mandates increased personal liability for senior managers.
Guest post: what colour is your credit event?
Markit credit analyst Lisa Pollack explores the intricacies of CDS credit events
Before the “Big Bang” in the credit default swap (CDS) market in the spring of 2009, if you thought a credit event had occurred,
Banks’ buyback pain to be $17bn – $42bn, Fitch estimates
While the Firm uses the best information available to it in estimating its repurchase liability, the estimation process is inherently uncertain and requires the application of judgment.
- JP Morgan’s Q2 10-Q filing.
That cornered – failing – MBS market
Fails to deliver — to the moon!
That’s trade settlement failures in mortgage-backed securities (MBS) — the most liquid US bond market after US Treasuries — and they’ve spiked this summer. The fails occur when the MBS seller fails to deliver on an agreed upon settlement date.
Politics by default
Take pity on Republican Congressman Mario Diaz-Balart.
The man in charge of Florida’s 25th congressional district has just been singled out by Deutsche Bank as the US Congressional representative with the hardest-hit constituency in terms of mortgage arrears.
The $11.1bn buyback pain at BAC
A sharp-eyed spot over at American Banker.
They’ve noticed this little section from Bank of America’s recently filed second-quarter 10-Q:
Although the timing and volume has varied, repurchase and similar requests have increased from buyers and insurers including monolines.
Hamp – it’s worse than we thought
So the US Treasury’s centrepiece mortgage modification programme — Hamp — is something of a failure. That much we knew already.
But Laurie Goodman over at Amherst Securities brings up another point.
The Great Mortgage Refinancing, by the numbers
Deutsche Bank have returned with some numbers to back up their cost claims when it comes to the Great Mortgage ReFi Rumour of August 2010.
Analyst Steven Abrahams noted last week that “hitting that reset button”
Housing lessons unlearned
The Washington Independent has an excellent story today about an ongoing housing programme in the US that is almost breathtaking in its stupidity.
Known as “Affordable Advantage”, it involves a kind of partnership between Fannie Mae,
Hitting the reset button on US mortgages…
Have you heard the Great Mortgage ReFi Rumour of August 2010?
Now that the US Treasury’s Hamp programme is widely recognised as a failure, attention is turning to new efforts to reinvigorate the lagging American housing market.
BarCap: 1 Hamp: 0
Barclays Capital has won its battle against Hamp stats.
BarCap analysts Sandeep Bordia and Jasraj Vaidya last week criticised the latest Hamp loan performance data, published on July 20 by the US Treasury.
The plain vanilla mortgage LIVES! It’s just called ‘qualified’
Did any one catch this bit in the latest (and last?) draft of theUS financial reform bill?
From page 189 of Title IX :
‘‘(B) require a securitizer to retain— 16 ‘‘(i) not less than 5 percent of the 17 credit risk for any asset— 18 ‘‘(I) that is not a qualified resi19 dential mortgage that is transferred,
Please sirs, Fannie Mae wants some more
Fresh off Freddie Mac asking the US Treasury for $10.6bn to offset losses on bad loans, Fannie Mae entered its own plea for a $8.4bn helping of financial aid.
Moreover, the home-loan company — which on Monday reported a net loss of $13.1bn for the first quarter of 2010 — warned in its 10-Q filing with the SEC that there is “significant uncertainty as to our long-term financial sustainability”:
Clearing house swap-downs
Woah, woah, woah. Someone call in a ref. It’s the clash of the clearing houses.
From FT Trading Room:
LCH.Clearnet has accused some of its global rivals of using loose standards to assess the amount of insurance traders must take out against a catastrophic default,
A different kind of bank repurchase
Call it poetic justice. Or perhaps, credit comeuppance.
The ghosts of sketchy mortgage loans are coming back to haunt the banks that created them — in the form of a wave of mortgage repurchases.
The way repurchases work is this.
Musings on mortgage modification-obfuscation
Here’s something to ponder ahead of the US bank earning season.
Mortgage modifications — that is, changes to the terms of home loans — have been running rampant just as banks’ non-performing loans and net-charge-offs appear to be peaking.
A $3,000bn shift in the interest rate swaps market [Corrected]
This is a big one: Fannie Mae and Freddie Mac will start using central counterparty clearing on their massive interest rate swaps portfolio, according to a Reuters report.
It’s worth noting that the combined size of Fannie and Freddie’s interest rate portfolio is $3,000bn – or about than 0.5 per cent per cent of the gross market value of the global interest rate swap market,
Fannie Mae’s insatiable appetite for bailout cash
It is rare that FT Alphaville agrees with a Wall Street Journal op/ed.
But in case of Fannie Mae, the WSJ’s characterisation of the government sponsored entity and its executives is spot on:
It was another impressive three months at Fannie Mae,
Buying out the mortgage market
Mortgage finance twinned with accounting rarely makes compelling reading, but bear with us.
Wednesday’s announcement that the two US Government Sponsored Enterprises (GSEs) will start buying out certain loans,
Filling the central bank void
Some thoughts to ponder before the Bank of England’s much-anticipated QE announcement later on Thursday.
FT Alphaville has worried before about what might happen once the Federal Reserve ends its $1.25 trillion buying-spree of mortgage-backed securities (MBS).