FANNIE MAE - FNMA STOCK NEWS

The Home Purchase Sentiment Index (HPSI) from Fannie Mae rose by 5.2 points to 81.7 in March 2021, reflecting increased consumer optimism in the housing market.

Key components such as homebuying conditions and household income improved, while expectations for future mortgage rates decreased. Notably, 53% of consumers believe it is a good time to buy a home, up from 48%, and 61% think it's a good time to sell, a rise from 55%. However, confidence in falling mortgage rates has declined significantly, with only 6% expecting a decrease.

Fannie Mae (OTCQB: FNMA) announced the results of its nineteenth reperforming loan sale, encompassing the sale of 24,755 loans valued at $3.45 billion in unpaid principal balance (UPB). The transaction involves five pools, with notable bidders including DoubleLine Capital, PIMCO, JP Morgan, and Balbec Capital. Each pool exhibits different metrics, such as average loan sizes and weighted average note rates. The sale is set to close on May 14, 2021. This strategic move aims to enhance liquidity and support housing opportunities across the U.S.

Fannie Mae (OTCQB: FNMA) has released its February 2021 Monthly Summary, detailing key metrics on its gross mortgage portfolio, mortgage-backed securities, interest rate risk measures, and serious delinquency rates. This report provides year-to-date activity insights that are crucial for investors and stakeholders interested in the company's performance in the housing finance sector.

Fannie Mae (OTCQB: FNMA) priced a $715 million Green Multifamily DUS^® REMIC under its Fannie Mae GeMS™ program on March 23, 2021. This issuance marks the fourth of 2021, contributing to over $90 billion in Multifamily MBS backed by green financing. The new bond aims to attract ESG-focused investors, offering 10-year, call-protected DUS collateral. Fannie Mae also updated its naming convention for better transparency. The total offering features various classes with guaranteed full payment of interest and principal.

On March 17, 2021, Fannie Mae's Economic and Strategic Research Group projected a significant U.S. GDP growth of 8.4% for Q2 2021 and 6.6% for the year, driven by easing lockdowns and consumer spending. The forecast highlights a decline in refinance mortgage demand, with the refinance share expected to drop to 54% in 2021 from 64% in 2020. Additionally, purchase demand is anticipated to reach $1.82 trillion in 2021. While interest rate increases are noted, they are not seen as a major concern in the short term. Overall, housing activity is expected to remain resilient despite modest rate hikes.

Fannie Mae (OTCQB: FNMA) has introduced Sponsor-Initiated Affordability (SIA) incentives to enhance affordable multifamily housing. This initiative offers lower borrowing costs for borrowers who commit to maintaining at least 20% of units affordable for families earning below 80% of the area median income (AMI). In 2020, Fannie Mae financed $76 billion for the multifamily market, marking a record in its DUS program. The SIA loans will also support the creation of 'social' and 'sustainable' bonds, attracting investors focused on social impact.

The Q1 2021 Mortgage Lender Sentiment Survey by Fannie Mae shows an increasing pessimism among mortgage lenders regarding profit margins, with 52% expecting declines—up from 48% in Q4 2020. Purchase mortgage demand expectations have risen across all loan types, despite a mixed Q1 performance. The report highlights a decrease in refinance demand and rising mortgage rates due to a surge in the 10-year Treasury yield. Competition among lenders remains a significant concern, alongside anticipated declines in profitability due to market shifts.

Fannie Mae (OTCQB: FNMA) has initiated its nineteenth sale of reperforming loans, aiming to shrink its retained mortgage portfolio. This sale features approximately 25,000 loans with a total unpaid principal balance of $3.5 billion, open for qualified bidders until March 30, 2021. The initiative includes provisions for loss mitigation options for buyers, targeting sustainable outcomes for borrowers at risk of re-defaulting. The sale is managed in partnership with Citigroup Global Markets.

The Home Purchase Sentiment Index (HPSI) of Fannie Mae (OTCQB: FNMA) fell by 1.2 points to 76.5 in February 2021, down 16.0 points year-over-year. Key components such as homebuying conditions and household income declined, while optimism about job security increased significantly. Notably, the perception of it being a good time to buy decreased from 52% to 48%, with those feeling it's a bad time rising to 43%. Home price expectations improved slightly, with 47% expecting increases. Concerns over job losses reduced, indicating a complex sentiment in the housing market.