Federal Nat - FNMA STOCK NEWS

Fannie Mae (FNMA) has added Basis Multifamily Finance I, LLC to its network of approved Multifamily Delegated Underwriting and Servicing (DUS) lenders as of November 7, 2022. Basis, a certified Minority- and Women-Owned Business, aims to enhance liquidity in the multifamily market and promote economic inclusion. Basis is now authorized to underwrite Fannie Mae Multifamily loans. The DUS model allows lenders to retain a portion of the risk, ensuring responsible lending. This partnership aims to improve access to affordable housing across the U.S.

Fannie Mae's Home Purchase Sentiment Index (HPSI) fell to 56.7 in October, marking an 18.8-point decline year-over-year and the lowest since the index's inception in 2011. Only 16% of consumers believe it's a good time to buy a home, the lowest in the survey's history. The index's components show increasing pessimism about buying and selling conditions, with a rise in those expecting home prices to decline. The overall trend suggests a cooling housing market, driven by high prices and unfavorable mortgage rates, leading to decreased consumer demand.

Fannie Mae (OTCQB: FNMA) has released its September 2022 Monthly Summary, providing insights into its gross mortgage portfolio, mortgage-backed securities, and serious delinquency rates. The report outlines the firm's monthly and year-to-date activities while highlighting key performance metrics including interest rate risk measures. Fannie Mae continues its mission to promote equitable access to homeownership and affordable rental housing across the U.S.

Fannie Mae (OTCQB: FNMA) announced the completion of its tenth Credit Insurance Risk Transfer™ (CIRT™) transaction of 2022, transferring $265 million in mortgage credit risk. This effort aims to reduce taxpayer risk by leveraging private capital in the mortgage market. The CIRT 2022-10 covers about 31,000 single-family loans with a total unpaid balance of $9.6 billion. Fannie Mae retains risk for the first 75 basis points of loss, with coverage extending for a term of 12.5 years and potential cancellation after five years.

Home prices in the U.S. saw a 13.8% increase in Q3 2022, down from 19.1% in the previous quarter, according to Fannie Mae's Home Price Index (FNM-HPI). While prices rose 0.2% quarterly, it marked the slowest growth since Q4 2011. The rise in mortgage rates and declining housing affordability are affecting demand, causing fewer homes to be listed. Doug Duncan, Fannie Mae's Chief Economist, highlighted that the increasing inventory of new homes may require builders to offer price concessions. These trends are expected to persist in upcoming months.

The housing market is projected to decline significantly due to rising mortgage rates and inflationary pressures.

The Fannie Mae Economic and Strategic Research Group expects a modest recession in early 2023, forecasting a 0.1% contraction in 2022 GDP and a further 0.5% decrease in 2023. Total single-family home sales are predicted to drop to 5.64 million in 2022 and 4.47 million in 2023, representing declines of 18.1% and 20.8%, respectively. Year-over-year home price growth is expected to turn negative by Q2 2023, with an average forecast decline of 1.5% for the year.

Fannie Mae's Home Purchase Sentiment Index (HPSI) declined 1.2 points in September to 60.8, marking its seventh consecutive monthly drop. This shift reflects growing affordability constraints, with consumers believing mortgage rates will rise further. Only 19% view it as a good time to buy a home, down from 22%, while 59% feel it's a good time to sell. Year-over-year, the index is down 13.7 points. Notably, the percentage of consumers expecting home prices to decline reached a survey high. The economic outlook remains cautious as affordability issues persist, affecting home sales.

Fannie Mae (OTCQB: FNMA) announced its twenty-eighth sale of reperforming loans, comprising around 10,400 loans with an unpaid principal balance of approximately $1.95 billion. This move is part of Fannie Mae's strategy to reduce its mortgage portfolio. Bids for the loans, marketed with Citigroup Global Markets, are due by November 1, 2022. Buyers are required to provide loss mitigation options for borrowers potentially re-defaulting within five years. Interested bidders can register for more information on Fannie Mae's website.