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Fannie Mae (FNMA) serves as a pivotal player in the U.S. housing finance sector, facilitating affordable homeownership and rental options for millions of Americans. As a leading source of mortgage financing, Fannie Mae partners with lenders to offer sustainable home loans and rental housing. The company’s efforts ensure the availability of the 30-year fixed-rate mortgage, providing homeowners with stable and predictable payments over the life of the loan.
Fannie Mae's core mission is to advance equitable and sustainable access to quality housing. The company's recent highlights include the sale of non-performing loans aimed at reducing retained mortgage portfolios and community impact initiatives like the Community Impact Pool (CIP). These initiatives are designed to benefit non-profit organizations, minority- and women-owned businesses, and smaller investors.
Fannie Mae actively engages in reperforming loan sales and continues to drive innovation in homebuying and renting solutions. The company's latest Home Price Index (FNM-HPI) reported a 7.4% year-over-year increase in Q1 2024, reflecting the ongoing demand and supply dynamics in the housing market. Fannie Mae's economic forecasts suggest a modest rise in home sales for 2024, despite higher mortgage rates.
The company also launched fixed-price cash tender offers for Connecticut Avenue Securities® Notes, demonstrating its proactive approach to financial management. Fannie Mae is committed to maintaining transparency with stakeholders, regularly updating its financial results and hosting informative conference calls.
Fannie Mae’s economic and strategic research group, recognized for its forecasting accuracy, continuously analyzes market trends to inform stakeholders and guide the company's strategic direction. Through responsible innovation and dedicated partnerships, Fannie Mae remains at the forefront of transforming the U.S. housing finance system.
Fannie Mae forecasts a modest recession beginning in early 2023, driven by elevated mortgage rates and home prices constraining housing activity. The Economic and Strategic Research Group predicts a 0.6% decline in GDP growth for 2023 and a cumulative 6.7% drop in home prices over two years, although they do not foresee a repeat of the Great Financial Crisis. Existing home sales are expected to remain depressed due to affordability issues, while new home sales may outperform. Economic signals indicate a potential soft landing, although a tight labor market could lead to prolonged elevated rates by the Federal Reserve.
Fannie Mae (FNMA) has announced the results of its 28th reperforming loan sale, consisting of approximately 10,100 loans totaling $1.9 billion in unpaid principal balance. The transactions, divided into five pools, have winning bidders including PIMCO and JP Morgan. The deal is expected to close by February 23, 2023. Each pool showcases a mix of loan sizes, weighted average note rates, and loan-to-value ratios. The loan sale requires buyers to provide loss mitigation options for borrowers at risk of re-defaulting within five years. This initiative supports Fannie Mae's mission to facilitate homeownership access.
Fannie Mae's latest Home Price Index (FNM-HPI) report indicates a decline in annual home price growth to 9.2% in Q4 2022, a significant drop from 13.1% the previous quarter. Non-seasonally adjusted, home prices fell by 1.0% from Q3 2022, while seasonally adjusted prices rose 0.2%. Rising mortgage rates and inflation are squeezing buyer affordability, contributing to a slowdown in home sales and reduced supply due to homeowners' reluctance to give up lower-rate mortgages. The FNM-HPI serves as a key indicator of single-family home price trends in the U.S.
Fannie Mae (OTC-PINK: FNMA) has confirmed its transition from legacy LIBOR loans to SOFR-indexed benchmarks as per the Federal Reserve Board's guidance. Announced on December 22, 2022, this transition excludes the term SOFR index for new loans or floating-rate securities, impacting products like Multifamily ARMs and Single-Family Credit Risk Transfer securities. Fannie Mae will not convert existing 30-day Average SOFR loans to term SOFR. The company plans to update its LIBOR Transition webpages soon, reinforcing its commitment to adapting to market changes.
Fannie Mae (OTCQB: FNMA) has successfully priced its Connecticut Avenue Securities (CAS) Series 2023-R01, a $731 million note offering, marking its first CAS REMIC transaction of the year. The reference pool encompasses approximately 68,000 single-family mortgage loans with an unpaid principal balance of $22.6 billion, acquired between January and February 2022. Notably, Fannie Mae retains portions of the first-loss tranches, enhancing its credit risk management strategy. With this deal, Fannie Mae has issued over $59 billion in notes through 54 CAS deals overall.
The Fannie Mae Home Purchase Sentiment Index (HPSI) rose by 3.7 points in December 2022 to 61.0, yet remains significantly below pre-pandemic levels. Despite a slight upturn, year-over-year the index is down 13.2 points, highlighting ongoing affordability issues due to high mortgage rates and home prices. Only 21% of consumers believe it is a good time to buy a home, attributed to persisting economic concerns. As 2023 begins, affordability continues to challenge potential homebuyers, with expectations that existing homeowners will hesitate to sell until rates improve.
Fannie Mae (OTCQB: FNMA) has released its November 2022 Monthly Summary, detailing key metrics regarding its mortgage portfolio, mortgage-backed securities, and interest rate risks. The report includes updates on serious delinquency rates and a comprehensive overview of year-to-date activities. Fannie Mae aims to promote equitable access to homeownership and affordable housing across the U.S.
Fannie Mae's Economic and Strategic Research Group forecasts a mild recession starting in early 2023, despite a slight GDP growth of 0.4% for 2022. Home sales projections for 2022 and 2023 have been revised to 5.72 million and 4.57 million units, respectively, mainly influenced by mortgage rate fluctuations. The ESR Group anticipates a rebound of 14.7% in home sales in 2024 as economic growth resumes. The report emphasizes ongoing affordability challenges in housing, impacting mortgage origination activity.
Fannie Mae (OTCQB: FNMA) announced the results of its fixed-price cash tender offers for certain Connecticut Avenue Securities (CAS) Notes, which concluded on December 9, 2022. Approximately $3,834 million in original principal amount of Notes were validly tendered. The settlement date for these Notes is expected on December 13, 2022. Key figures include a total tender amount of $5.25 billion, with an average percentage of original principal amount tendered at 72.98%. BofA Securities and Wells Fargo Securities served as lead dealer managers for this transaction.
Fannie Mae's Home Purchase Sentiment Index (HPSI) rose 0.6 points to 57.3 in November, breaking a nine-month decline but remaining near its all-time low. The full index is down 17.4 points year-over-year. Key factors include rising mortgage rates, with 62% of respondents expecting further increases, negatively impacting affordability. Both homebuying and selling sentiments dropped significantly compared to last year. While perceptions of a good time to sell improved, concerns about job security rose, with those confident about their job lessening from 85% to 78%.
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