FANNIE MAE - FNMA STOCK NEWS

Fannie Mae has launched an Expanded Housing Choice initiative aimed at increasing affordable housing accessibility for voucher holders in Texas and North Carolina. This initiative offers financing incentives to multifamily property owners who accept Housing Choice Vouchers from the U.S. Department of Housing and Urban Development. Announced on April 4, 2022, it seeks to make the rental market more inclusive and is supported by resources from Enterprise Community Partners. The initiative is part of Fannie Mae's ongoing mission to promote equitable housing solutions.

Fannie Mae (OTCQB: FNMA) has released its February 2022 Monthly Summary, detailing its activities regarding gross mortgage portfolio, mortgage-backed securities, and guarantees. The report provides insights into interest rate risk measures and serious delinquency rates. Fannie Mae continues to focus on enhancing access to homeownership and affordable housing across the U.S.

Fannie Mae priced a $721 million Multifamily DUS^® REMIC under its Fannie Mae GeMS™ program on March 16, 2022. This issuance, FNA 2022-M3, is the third of the year. Despite market volatility and a recent Federal Reserve interest rate hike, investors showed interest in the deal, which provides over $700 million in 10-year collateral and has a 2.19x DSCR. All classes are guaranteed by Fannie Mae for timely interest and principal payments, with detailed structure available in the official documentation.

Fannie Mae (OTCQB: FNMA) recently priced its Connecticut Avenue Securities (CAS) Series 2022-R03, raising approximately $1.2 billion. This marks Fannie Mae's third CAS REMIC transaction in 2022, aimed at sharing credit risk on its single-family mortgage guaranty book. The reference pool includes about 150,000 loans, totaling an unpaid principal balance of around $44 billion. The successful transaction is a part of Fannie Mae's ongoing efforts to promote market transparency and risk management.

Fannie Mae (OTCQB: FNMA) has completed its second and third Credit Insurance Risk Transfer (CIRT) transactions of 2022, transferring $1.8 billion in mortgage credit risk to private insurers. The covered loan pools include approximately 87,400 and 76,600 single-family loans with unpaid principal balances of $26.5 billion and $23.3 billion, respectively. The CIRT 2022-2 and CIRT 2022-3 transactions will allow Fannie Mae to retain the first 25 and 65 basis points of loss, respectively, with private insurers covering significant losses thereafter.

Fannie Mae's March 2022 Economic Outlook predicts a challenging economic landscape due to inflation and geopolitical tensions from the Russian invasion of Ukraine. The ESR Group adjusted its GDP growth forecast for 2022 to 2.3%, down from 2.8%, citing risks to both macroeconomic and housing outlooks. The 30-year mortgage rate is expected to increase to 3.8% in 2022, with home sales projected to decline by 4.1%. Despite rising rates, housing continues to support the economy, though refinance activity is anticipated to drop significantly.

A majority of mortgage lenders anticipate a decrease in profitability due to rising mortgage rates and declining refinance activity, as revealed in Fannie Mae's Q1 2022 Mortgage Lender Sentiment Survey. 75% of lenders expect profit margins to drop, up from 65% in the previous quarter. Economic pessimism has also increased, with 59% of lenders believing the economy is on the wrong track. Consumer demand for purchase and refinance mortgages is weakening, leading to a bearish outlook on future business activity.

Fannie Mae (OTCQB: FNMA) reported the outcome of its 24th reperforming loan sale, involving 7,970 loans totaling $1.3 billion in unpaid principal balance (UPB). The pools were sold to Pacific Investment Management Company LLC (PIMCO) and MCLP Asset Company (Goldman Sachs) with closing expected on April 18, 2022. The loans were divided into three pools, each with specific characteristics including average loan sizes and weighted note rates. Buyers must adhere to loss mitigation options for any borrowers at risk of re-defaulting within five years.

The Home Purchase Sentiment Index (HPSI) from Fannie Mae rose 3.5 points to 75.3 in February but remains 1.2 points lower than the previous year. While five of its six components increased, affordability issues persist, especially for potential homebuyers, with high prices and rising mortgage rates cited as challenges. Notably, a record percentage of respondents anticipate higher mortgage rates in the coming year. Consumers’ job security perception improved, but geopolitical events may exacerbate economic uncertainties, impacting future mortgage demand.