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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 has priced its Connecticut Avenue Securities (CAS) Series 2022-R06, a note offering of approximately $754 million. This marks Fannie Mae's sixth CAS transaction for 2022, designed to share credit risk associated with its single-family mortgage loans. The reference pool consists of around 83,000 loans totaling $25.0 billion, with rigorous credit standards applied. Following this transaction, Fannie Mae will have completed 50 CAS deals, issuing nearly $57 billion in notes and transferring credit risk on more than $1.8 trillion in mortgage loans.
Fannie Mae's Home Purchase Sentiment Index (HPSI) slightly decreased by 0.3 points in May to 68.2, marking a year-over-year decline of 11.8 points. Notably, only 17% of consumers believe it's a good time to buy a home, while 79% deem it a bad time. Concerns about rising mortgage rates are prevalent, with 70% expecting continued increases. Job security worries also rose, with 16% of respondents expressing pessimism. The index reflects ongoing challenges including affordability and inflation, suggesting that home sales may significantly slow down.
Fannie Mae (OTCQB: FNMA) has released its April 2022 Monthly Summary, detailing key metrics of its operations. The report covers the gross mortgage portfolio, mortgage-backed securities, interest rate risk measures, and serious delinquency rates. This summary provides a comprehensive view of Fannie Mae's activities for the month and year-to-date, highlighting the company's commitment to equitable homeownership across America.
Fannie Mae (OTCQB: FNMA) has executed its fifth Credit Insurance Risk Transfer™ (CIRT™) transaction of 2022, transferring $733.3 million of mortgage credit risk to private insurers. This transaction covers approximately 67,700 single-family loans with a total unpaid principal balance of $21 billion. Since the program's inception, Fannie Mae has secured $19.2 billion in insurance on $656.6 billion of loans. This move aims to reduce taxpayer risk and enhance private capital's role in the mortgage market, effective from April 1, 2022.
Fannie Mae's Economic and Strategic Research Group revised its 2022 GDP growth forecast down to 1.3%, citing persistent inflation and rising interest rates. The group anticipates a contraction in the economy, with 1.6% growth expected in the second quarter following a 1.4% percent decline in Q1. A major slowdown in home sales and a deceleration in home price growth are predicted due to rising mortgage rates. The report highlights that affordability issues discourage homebuying, and the likelihood of a recession by late 2023 has increased amid geopolitical tensions.
On May 11, 2022, Fannie Mae (OTCQB: FNMA) priced a $720 million Multifamily DUS® REMIC called FNA 2022-M10, marking its fifth GeMS issuance of the year. The issuance offers 10-year cash flows with future prepayment premiums on underlying MBS. All classes are guaranteed by Fannie Mae for timely interest and principal payments. The weighted average debt service coverage ratio stands at 1.75x with a loan-to-value ratio of 66.7% for the collateral of $719.8 million. The deal reflects strong investor interest despite market rate volatility.
Fannie Mae (FNMA) has announced its sale of non-performing loans, part of its strategy to reduce its mortgage portfolio. This sale includes two large pools totaling approximately $489.6 million in unpaid principal balance and the nineteenth Community Impact Pool (CIP) worth $36.3 million in unpaid principal balance. The loans are primarily located in the New York area. Bids for the larger pools are due by June 7, 2022, and for the CIP by June 21, 2022.
Fannie Mae (OTCQB: FNMA) announced the results of its twenty-fifth reperforming loan sale transaction on May 10, 2022. The sale involved approximately 7,500 loans totaling $1.47 billion in unpaid principal balance, divided into three pools. Winning bidders were PIMCO for Pools 1 and 2, and Goldman Sachs for Pool 3. The transaction is scheduled to close on June 17, 2022. Reperforming loans, which may have been delinquent but are now performing, require buyers to offer loss mitigation options to borrowers within five years of the sale.
Fannie Mae's Home Purchase Sentiment Index (HPSI) dropped by 4.7 points to 68.5 in April 2022, marking the lowest level since May 2020. This decline reflects growing consumer concerns about housing affordability amid rising mortgage rates and home prices. A record 76% of respondents believe it's a bad time to buy a home, with 73% expecting mortgage rates to rise further within the next year. Year-over-year, the HPSI is down 10.5 points. The index's components show decreased optimism regarding both home buying and selling conditions, indicating a potential slowdown in home sales through 2022 and beyond.
Fannie Mae's Home Purchase Sentiment Index® (HPSI) dropped by 4.7 points to 68.5 in April, the lowest since May 2020, amid rising mortgage rates and home prices. 76% of consumers believe it's a bad time to buy a home, up from 73% the previous month. Additionally, 73% expect mortgage rates to rise further. Year-over-year, the index decreased by 10.5 points. Concerns about affordability, especially among younger potential buyers, and declining perceptions of mortgage accessibility are evident, anticipating slower home sales through 2023.
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