|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.4300 - 1.5400|
|52 Week Range||1.2000 - 4.0400|
|Beta (5Y Monthly)||2.07|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 28, 2019 - Nov 03, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jun 11, 2008|
|1y Target Est||4.38|
Mortgage rates along with applications eased last week. There is uncertainty ahead for the housing sector as jobless claims surge.
Mortgage rates seesawed lower this week after the Federal Reserve stepped in to provide some assurance to lenders who were at a loss as to how to price home loans amid the disruptions caused by the coronavirus emergency. Meanwhile, the 15-year fixed-rate mortgage fell 14 basis points to 2.92%. The trajectory for the 5-year Treasury-indexed hybrid adjustable-rate mortgage was quite different, however.
At the direction of the Federal Housing Finance Agency, the two mortgage companies are rolling out payment deferrals, which will serve as an alternative to forbearance and loan modifications for borrowers who are struggling to remain current on their home loans. Fannie Mae and Freddie Mac accounted for upward of 46% of all mortgages originated as of 2018, according to a report from the Urban Institute. Borrowers who are granted a payment deferral will see their delinquent principal and interest payments deferred.
(Bloomberg Opinion) -- The economic debate of the day centers on whether the cure of an economic shutdown is worse than the disease of the virus. Similarly, we need to ask if the cure of the Federal Reserve getting so deeply into corporate bonds, asset-backed securities, commercial paper, and exchange-traded funds is worse than the disease seizing financial markets. It may be.In just these past few weeks, the Fed has cut rates by 150 basis points to near zero and run through its entire 2008 crisis handbook. That wasn’t enough to calm markets, though — so the central bank also announced $1 trillion a day in repurchase agreements and unlimited quantitative easing, which includes a hard-to-understand $625 billion of bond buying a week going forward. At this rate, the Fed will own two-thirds of the Treasury market in a year.But it’s the alphabet soup of new programs that deserve special consideration, as they could have profound long-term consequences for the functioning of the Fed and the allocation of capital in financial markets. Specifically, these are:CPFF (Commercial Paper Funding Facility) – buying commercial paper from the issuer. PMCCF (Primary Market Corporate Credit Facility) – buying corporate bonds from the issuer. TALF (Term Asset-Backed Securities Loan Facility) – funding backstop for asset-backed securities. SMCCF (Secondary Market Corporate Credit Facility) – buying corporate bonds and bond ETFs in the secondary market. MSBLP (Main Street Business Lending Program) – Details are to come, but it will lend to eligible small and medium-size businesses, complementing efforts by the Small Business Association.To put it bluntly, the Fed isn’t allowed to do any of this. The central bank is only allowed to purchase or lend against securities that have government guarantee. This includes Treasury securities, agency mortgage-backed securities and the debt issued by Fannie Mae and Freddie Mac. An argument can be made that can also include municipal securities, but nothing in the laundry list above.So how can they do this? The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.In 2008 when something similar was done, it was on a smaller scale. Since few understood it, the Bush and Obama administrations ceded total control of those acronym programs to then-Fed Chairman Ben Bernanke. He unwound them at the first available opportunity. But now, 12 years later, we have a much better understanding of how they work. And we have a president who has made it very clear how displeased he is that central bankers haven’t used their considerable power to force the Dow Jones Industrial Average at least 10,000 points higher, something he has complained about many times before the pandemic hit.When the Fed was rightly alarmed by the current dysfunction in the fixed-income markets, they felt they needed to act. This was the correct thought. But, to get the authority to stabilize these “private” markets, central bankers needed the Treasury to agree to nationalize (own) them so they could provide the funds to do it.In effect, the Fed is giving the Treasury access to its printing press. This means that, in the extreme, the administration would be free to use its control, not the Fed’s control, of these SPVs to instruct the Fed to print more money so it could buy securities and hand out loans in an effort to ramp financial markets higher going into the election. Why stop there? Should Trump win re-election, he could try to use these SPVs to get those 10,000 Dow Jones points he feels the Fed has denied everyone.If these acronym programs were abused as I describe, they might indeed force markets higher than valuation warrants. But it would come with a heavy price. Investors would be deprived of the necessary market signals that freely traded capital markets offer to aid in the efficient allocation of capital. Malinvestment would be rampant. It also could force private sector players to leave as the government’s heavy hand makes operating in “controlled” markets uneconomic. This has already occurred in the U.S. federal funds market and the government bond market in Japan.Fed Chair Jerome Powell needs to tread carefully indeed to ensure his cure isn’t worse than the disease.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Jim Bianco is the President and founder of Bianco Research, a provider of data-driven insights into the global economy and financial markets. He may have a stake in the areas he writes about.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- For the past month, bond traders confronted nothing short of chaos at every turn. U.S. Treasuries, mortgage-backed securities, investment-grade and high-yield corporate bonds, leveraged loans and collateralized loan obligations, it didn’t matter. Everything was for sale, and no one was willing — or, in many cases, able — to buy.That relentless tide is starting to turn as March draws to a close. Thanks to a series of bold steps by the Federal Reserve, namely its promise to buy as many Treasuries and agency mortgage-backed securities as necessary, its unprecedented venture into the investment-grade credit market and its deeper expansion into municipal bonds, traditionally safe debt is showing signs of returning to more normal yields and spreads. Blue-chip companies feel comfortable borrowing again. Don’t necessarily take the latest dire fund flow numbers at face value. Yes, investment-grade bond funds experienced a record $38 billion outflow in the week through March 25, as did munis with $13.7 billion of withdrawals. But individual investors are drawn to winning asset classes. And these securities have staged comebacks that are unprecedented in recent memory.The same optimism hasn’t reached the riskier parts of the debt markets. The amount of bonds and loans trading at distressed levels in the U.S. quadrupled in less than a week to almost $1 trillion, nearing the 2008 peak, Bloomberg News’s Katherine Doherty reported. Credit-rating companies are downgrading companies at the fastest pace in more than a decade, ushering in several large fallen angels like Ford Motor Co. and Occidental Petroleum Corp. Mortgage real estate investment trusts have been pummeled by margin calls from banks anxious that tenants won’t cover rent. As it stands, the Fed’s programs won’t backstop these parts of the market — probably for good reason. Simply put, the bond market has bifurcated into winners and losers after this month’s mayhem. Here’s what the divide looks like:Winner: U.S. TreasuriesIt took a record amount of buying from the Fed, and a pledge to purchase much more, but the world’s biggest bond market showed clear signs of tranquility this week. On March 19, the spread between liquid on-the-run 10-year debt and older off-the-run securities was four basis points, or eight times as high as a month earlier. On Monday, after the Fed’s scrapped its limits on quantitative easing, the spread dropped to 1.6 basis points. By Thursday, it fell to 0.4 basis points.The MOVE index of implied volatility for the U.S. government bond market also indicates more orderly Treasuries trading. It hit the lowest level since Feb. 26 on Wednesday, after the sharpest two-day percentage decline since data begin in 1988. Benchmark yields across the curve are settling into sensible ranges — a major win for the Fed.Winner: Investment-grade corporate bondsYes, the yield spread on the Bloomberg Barclays index of high-grade corporate bonds reached 373 basis points on Monday, the widest since 2009. But it’s looking increasingly like that’ll be the worst of it. That gap narrowed 20 basis points on Tuesday and then 29 basis points on Wednesday. A tightening of that magnitude has never happened since daily data began in 2000.In what’s arguably an even more encouraging sign of market health, more investment-grade companies are choosing to issue new debt. McDonald’s Corp., Nike Inc., 3M Co. and Deere & Co. were among those that priced deals amid Wednesday’s rally, while Nvidia Corp., Home Depot Inc. and Target Corp. were marketing bond offerings on Thursday. Because Treasury yields are near record lows, these companies are still borrowing at rates similar to those a year ago.Loser: High-yield corporate bondsAt first glance, junk bonds appear to be on a similar trajectory as their high-grade counterparts. Spreads on the Bloomberg Barclays high-yield index peaked at 1,100 basis points on Monday before tightening by 75 basis points over the next two days. On a relative basis, that’s still not nearly the same rebound.Unlike the investment-grade market, high-yield issuance is nonexistent while so much uncertainty remains about the coronavirus outbreak and length and impact of the U.S. economic halt. No deals are scheduled. At best, there’s speculation about potential offerings in the coming months.To make matters worse, the longstanding fear of a wave of fallen angels overwhelming the junk-bond market is finally starting to materialize. In the biggest example, Ford’s $35.8 billion of debt will be removed from the Bloomberg Barclays investment-grade index at the end of the month and move into high yield. Meanwhile, those companies already rated junk are looking more at risk of folding: S&P Global Ratings said this month that the default rate on U.S. nonfinancial corporate debt may rise above 10%. Loser: Leveraged loans, riskier CLOsIt’s mostly the same story, if not worse, in leveraged loans. The distressed trading level is defined as corporate bonds that yield at least 10 percentage points above Treasuries and loans that trade for less than 80 cents on the dollar. The S&P/LSTA Leveraged Loan Price Index was hovering just above 76 cents at the beginning of the week. It increased on Wednesday for the first time since March 10 but remains firmly below that distressed threshold. No loans launched or priced this week. There aren’t even any bank meetings scheduled. This market is almost entirely frozen, though some buyers have been looking to buy scarce double-B credits and the largest, most liquid obligations. Leveraged loans’ credit ratings are an important flashpoint for certain parts of collateralized loan obligations. Generally, CLOs have a 7.5% limit for triple-C rated loans. The way they’re structured, though, it would take an enormous amount of downgrades to even begin to concern top-rated tranches. Indeed, on Wednesday, Citigroup Inc. published a report titled “CLO AAA Screams Cheap.” In the same breath, though, the strategists noted “the spread pickup of CLO BB to BBB breached post-crisis highs last week, suggesting serious credit risk concerns.” In other words, the lower-rated tranches are definitely dicey, but the safest portions are being unduly punished along with them. Winner: Agency mortgage-backed securitiesThis one is a bit of a no-brainer. The Fed’s open-ended QE includes mortgage securities guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac. These have bounced back in a big way, recouping all their losses from the last two weeks.The central bank bought $39 billion on Wednesday, $36 billion on Tuesday and $30 billion on Monday. For some context, before this month, the highest total for an entire week was $33 billion in March 2009.Loser: Private commercial MBS, mortgage REITsAs my Bloomberg Opinion colleague Matt Levine put it yesterday, “nobody wants a margin call right now.”Of course, that’s exactly what’s happening to mortgage real-estate investment trusts. As I wrote earlier this week, the REITs have plunged in price because banks are worried that closed tenants will miss rent, which will cause landlords to miss mortgage payments, which will wipe out the cash flow to commercial mortgage-backed securities. A Bloomberg Barclays index of “U.S. CMBS 2.0,” which is the market of conduit and fusion CMBS deals issued since January 2010, is down almost 11% this month, easily the biggest loss ever. The Fed isn’t heavy-handed in this nonagency part of the mortgage market, though some investors are pleading for the central bank to do more. Until then, each day the U.S. economy remains halted creates further pain for these securities.Winner: Municipal bondsTo end on a positive note: Look at munis go!In what I’d describe as nothing short of breathtaking, the yield on 10-year, triple-A munis tumbled by 138 basis points in three days, with Wednesday representing the biggest one-day advance since 1993. If any investor was looking for evidence of a “V-shaped” recovery, look no further than the iShares National Muni Bond ETF (ticker: MUB). In a matter of days, it went from its lowest price since 2013 to rocketing back to roughly the same level it started at in 2020.This doesn’t usually happen to the $3.9 trillion municipal market. Traditionally, steep losses and huge outflows begin a vicious cycle of more withdrawals and further forced selling. All those pieces were in place as of last week. The Fed did signal a bit of support to the market since then, and the $2 trillion fiscal relief bill in Washington does pledge monetary support to local governments, but that doesn’t feel like the entire story. More likely, opportunistic investors saw muni ETFs trade at wider discounts to their net asset values than any other fund, and individual bond pickers noticed 10-year tax-exempt yields three times as high as taxable Treasuries, and determined it was too cheap to pass up.In that sense, munis were a microcosm of the $100 trillion global bond market: Things got weird in a hurry. Central banks swiftly provided liquidity and gave investors a chance to breathe again. Now it’s time to sort through the wreckage.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Treasury Secretary Steven Mnuchin reiterated Thursday that he wants U.S. financial markets to remain open even as the coronavirus fuels wild volatility, while adding that he’s focused on helping mortgage firms expected to be hit hard by the pandemic’s spreading economic pain.Mnuchin, speaking on a call with the nation’s top financial regulators, said there’s a consensus among federal agencies that it’s “in the best interest” that trading in stocks and other assets continue. He was joined by Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chairman Jay Clayton and other agency leaders.The past two weeks of huge market swings have fueled rumors across Wall Street that the government could halt trading. Last week Mnuchin added to the speculation by saying that while President Donald Trump’s administration plans to keep markets open it could shorten trading hours. On Thursday, Mnuchin clarified his position.“We will do everything we can working with the regulators and the exchanges to make sure that the markets stay open,” Mnuchin said. “If for whatever reason we get to a point where the underlying regulators determine that the markets can’t stay open full hours, we may consider limiting the trading hours, but that is not our preference.”Broad CoalitionA broad coalition of hedge funds, stock exchanges, banks and even brick-and-mortar businesses have urged U.S. policy makers to keep markets open. Some of the concerns have eased this week with stocks soaring on expectations that Congress will pass a $2 trillion stimulus bill by Friday to aid struggling businesses and consumers.Read More: Hedge Funds and Exchanges See Devastation If Markets CloseThe rescue legislation is a factor in another issue confronting Mnuchin: Whether to assist mortgage-servicing firms that could face a cash crunch as wide swaths of homeowners stop making their monthly payments.A bill the Senate approved Wednesday would grant forbearance to borrowers who can show they’re facing financial hardship due to the coronavirus. The provision’s purpose is to prevent households experiencing job losses or lost income from losing their homes as a result.The legislation, which must still be approved by the House, follows a decision by the Federal Housing Finance Agency this month to grant forbearance to coronavirus-impacted borrowers with mortgages backed by Fannie Mae and Freddie Mac.Task ForceMnuchin said Thursday that he had formed a task force of regulators to deal with the liquidity shortfall that mortgage service firms may soon face. The companies collect money from borrowers monthly and facilitate payments to mortgage bond investors. The obligation to compensate bond holders continues even if homeowners miss mortgage payments.The treasury secretary said he’s asked the task force to make recommendations by March 30. The Mortgage Bankers Association, a Washington trade group, estimates that if 25% of borrowers ask to postpone their payments for six months, the tab could be more than $75 billion.Read More: Mortgage Firms at Risk of Multibillion Hit From ForbearanceMnuchin made his remarks during a meeting of the Financial Stability Oversight Council, a panel of regulators formed after the 2008 financial crisis to spot emerging threats to the U.S. economy. Among agency heads on the Thursday call was FHFA Director Mark Calabria, who oversees Fannie and Freddie.Much of the financial industry has coalesced behind proposals that call for the U.S. government to finance servicers’ expected payments to mortgage investors, either through the Fed or Treasury Department.The FHFA made clear Thursday that it doesn’t plan to let Fannie and Freddie create funding mechanisms to aid mortgage servicers.“FHFA will continue to emphasize that Fannie Mae and Freddie Mac must use their limited resources to support borrowers, renters and investors,” FHFA spokesman Raphael Williams said in an emailed statement. “FHFA does not have plans to authorize a mortgage-servicer liquidity facility for either Enterprise as they both are undercapitalized.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MCLEAN, Va., March 26, 2020 -- Freddie Mac (OTCQB: FMCC) announced today that it issued its Monthly Volume Summary for February 2020, which provides information on Freddie.
(Bloomberg) -- U.S. mortgage rates fell for the first time in three weeks. But for would-be homebuyers frozen in fear of an economic meltdown, borrowing costs are no longer a prime concern.The average rate for a 30-year fixed loan was 3.5%, down from 3.65% last week, Freddie Mac said in a statement Thursday.Americans hunkering down in coronavirus quarantine are in no mood to shop for homes. Even if they can buy, many worry about how bad the coming recession will be, and how long it will last. A total of 3.28 million people sought unemployment benefits in the week ended March 21, the most in government data going back to 1967.In an early sign of slipping demand, a index of applications for home-purchase loans tumbled 15% last week to its lowest level since August, according to the Mortgage Bankers Association.Home sales are going to drop, no matter what mortgage rates do, said Matthew Speakman, an economist at Zillow. Eventually, the virus will pass and loan costs will start to matter again.“In the short term, the impact of mortgage rates on home sales has weakened due to the fact there are these shelter-in-place initiatives and consumer confidence has taken a hit,” Speakman said. “Where mortgage rates are going to help is when we find ourselves ready and in place to recover.”Interest rates on new mortgages had stayed stubbornly high in recent weeks after a sharp drop spurred a surge of loan applications. The average for a 30-year loan had tumbled to a record-low 3.29% early this month, Freddie Mac data show.The flood of paperwork overwhelmed some lenders, who then tried to spurn new business by refusing to answer calls from interested borrowers, cutting back on advertising, or even raising rates.The Federal Reserve, which dropped its benchmark lending rate to near zero, has pledged to buy unlimited amounts of mortgage bonds. That move may help calm some panicked investors who seek to free up cash as Americans lose jobs and fall behind on loan payments.“Real estate demand is softening,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “However, the combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets.”But Jeremy Sopko, chief executive officer of Nations Lending Corp., says households are paying too much and aren’t getting the full benefit of the Fed’s efforts to lower the cost of borrowing.Rates for traditional 30-year fixed mortgages typically follow yields on the 10-year Treasury note, but this month, the gap between the two is hovering near record highs, according to monthly data compiled by Bloomberg dating to 1998.(Updates with jobless claims in third paragraph and comments from lender in last two paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MCLEAN, Va., March 26, 2020 -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage.
Many Americans are falling into financial trouble amid the coronavirus stock market crash and threat of a recession. But many big firms offer aid to delay bills and raise cash.
Some owners of multifamily buildings will be allowed to defer their loan payments for roughly three months.
(Bloomberg Opinion) -- U.S. stocks led the way on Tuesday in the biggest rally for global equities since the depths of the financial crisis in October 2008, with the MSCI All-Country World Index surging 8.39% in late trading. No one is ready to say the rebound is the start a sustained rally; history shows that in times of crisis, markets experience multiple false starts. So rather than the beginning of the end, it may be more like the end of the beginning.And yet, although stocks have experienced unprecedented volatility in recent weeks, plummeting into the fastest bear market in history, one thing is becoming clear: Investors are optimistic that the earnings power of U.S. companies has only been temporarily impaired. At Monday’s close of 2,237, the S&P 500 Index was trading at 19 times the benchmark’s average earnings per share of $122 over the past decade, according to DataTrek Research. It’s a safe bet that earnings won’t meet that average in 2020 given the steep contractions in the economy being projected, “but markets think we’ll get there in the next year or the year after,” DataTrek co-founder Nicholas Colas wrote in a research note. That’s a tremendous vote of confidence in America, but is it realistic? After the financial crisis, Colas notes that it took just 12 months, or until the first quarter of 2010, for earnings to return to their pre-crisis normalized levels. It took another 18 months for earnings to reach a new highs.The economic data that will trickle out in coming months will surely show a lot of pain and questions of how quickly corporate America can rebound. Some Wall Street firms are predicting the economy will likely contract by 30% or more in the second quarter. But the recent sell-off in markets has happened at double the speed of what we saw during the financial crisis. Given that, is it crazy to think the recovery could come faster? Investors don’t seem to think so. SURVIVAL OF THE FITTEST CORPORATE BONDSA key part of the Federal Reserve’s latest efforts to keep the financial system afloat is to buy corporate bonds. More specifically, the central bank will only buy investment-grade bonds maturing in five years or less, as well as exchange-traded funds that buy such securities. Bonds rated below investment grade, or junk, are out of luck. This has naturally resulted in a clear bifurcation in the corporate bond market between the “haves” and the “have-nots.” The cost to insure investment-grade corporate bonds against default has fallen to about its lowest level in more than two weeks. The cost to do the same with junk bonds is only back to where it was late last week, which is to say at levels that predict an elevated level of defaults on the order of about 10% or so that we saw in the aftermath of the 2008 financial crisis. In some ways, this isn’t a bad thing, as it should finally prod borrowers to clean up their balance sheets and cut their debt, which has hardly been an incentive in recent years. But the gap in yields between investment-grade and junk bonds has blown out to almost 7 percentage points in recent weeks from less than 3 percentage points. THE DOLLAR TAKES A NEEDED BREATHEROf all the moves by the Fed over the last week, perhaps the most underappreciated has been efforts to ease a run on the dollar, stemming a rally that further threatened to upend the global financial system. What the Fed did was provide foreign-exchange swap lines with central banks in both developed and emerging markets, offering dollars in exchange for their currencies. Issuers in developing countries have borrowed trillions of dollar-denominated debt, and the greenback’s rise means it’s much more expensive for them to make interest payments or refinance. The Institute of International Finance estimates that emerging-market borrowers have $8.3 trillion of foreign-currency debt, the bulk of it in dollars, up by more than $4 trillion from a decade ago. The Bloomberg Dollar Spot Index surged 8.44% between March 9 and March 19, but has been little changed since, including dropping as much as 1.51% on Tuesday in what was its biggest intraday decline since February 2016. “Markets are going to start feeling the full tsunami of liquidity the Fed is providing now,” Nathan Sheets, head of macroeconomic research at PGIM Fixed Income, told Bloomberg News.GOLD IS ACTING ODD AGAINFor the most part, markets have behaved as one would expect in times of crisis. Investors fled riskier assets such as equities, commodities and credit, and loaded up on cash, U.S. Treasuries, the dollar, Swiss franc and Japanese yen. The one exception has been gold. The precious metal sold off hard as the coronavirus pandemic spread around the world earlier this month, and in recent days has rebounded even though there have been signs of optimism. This isn’t how gold, known as a haven, is supposed to act. But there are sensible explanations. Gold’s decline from about $1,680 an ounce on March 9 to $1,471 on March 19 was likely the result of selling by finance authorities and central banks, which had loaded up on the precious metal throughout 2019 to raise cash. The rebound over the past three days to $1,623 on Tuesday is harder to explain, but is likely tied to physical trading routes being choked off. At issue is whether there will be enough gold available to deliver against futures contracts, with metals refiners shutting and efforts to contain the virus halting planes, according to Bloomberg News’s Jack Farchy and Justina Vasquez. “This isn’t anything that we’ve seen in a generation because refiners never had to shut down – not in war, not in the great financial crisis, not in natural disasters,” said Tai Wong, the head of metals derivatives trading at BMO Capital Markets. TEA LEAVESThe Mortgage Bankers Association of America releases data on the volume of loans for home purchases and refinancings every Wednesday. And although it would be logical to think that the collapse in Treasury yields, which help determine mortgage rates, would be a boon for homeowners looking to refinance, that hasn’t exactly been the case. Yes, refinancings are up, but so are mortgage rates. The average rate on a 30-year mortgage has jumped to 3.65%, the highest since January, from 3.29% earlier this month, according to Freddie Mac. One reason for this is the disruptions that we have seen in the market for mortgage bonds, which also help set home-loan rates. Yields on those securities have jumped as investors both sell the most-liquid mortgage bonds in an attempt to raise cash and as those bonds backed by riskier borrowers drop on concern for the potential of a spike in consumer defaults. The government is taking steps to alleviate pressures on consumers, but until that happens, mortgage rates are likely to remain elevated relative to what they would normally be.DON’T MISS $25 Trillion of Derivatives Exposure We Can't Cover: Shuli Ren Matt Levine's Money Stuff: Now There’s a Mortgage Crisis Too Fallen Angels Are Coming. Fed Can't Save Them: Brian Chappatta Trump Would Hurt Economy With Restart Effort: Michael R. Strain How a Risk Manager Thinks About Personal Finance: Aaron BrownThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service has assigned the rating of Aa2 to the proposed $85,300,000 of New York State Housing Finance Agency's (the "Agency" or "NYS HFA") Affordable Housing Revenue Bonds, 2020 Series C. Moody's also maintains a Aa2 rating on all outstanding parity debt issued under the Agency's General Resolution adopted on August 2007 (the "Resolution"). This rating action does not apply to bonds issued as part of the New Issue Bond Program ("NIBP") under the 2009 Supplemental Series Indenture, which are also rated Aa2. The Aa2 rating primarily reflects the credit quality of the credit support providers for the multifamily mortgage loans pledged to the bondholders under the program's Resolution and Supplemental Resolutions together with the additional funds provided by the Agency and pledged to the bondholders.
The Federal Reserve is working to keep credit flowing in the U.S. and beyond as global markets convulse, businesses board up, and workers lose jobs in the wake of the coronavirus pandemic.
Freddie Mac (FMCC) today announced, in coordination with the Federal Housing Finance Agency (FHFA), a nationwide relief plan for its Multifamily borrowers and residents of their apartment properties. Under the Freddie Mac program, multifamily landlords whose properties are financed with a Freddie Mac Multifamily fully performing loan can defer their loan payments for 90 days by showing hardship as a consequence of COVID-19 and by gaining lender approval. In turn, Freddie Mac is requiring landlords not to evict any tenant based solely on non-payment of rent during the forbearance period.
Given dire economic & job loss predictions, coronavirus rental relief, mortgage & credit card relief will keep coming fast. Here's how to get help.
The Federal Reserve’s expansion of its mortgage-backed security purchases came at a good time—right when it looked as if the market was starting to crumble. Securities backed by residential and commercial mortgages have been selling off, and the effects of those declines have been rippling through the broader mortgage market. For the month through Friday, the ICE BofA U.S. Mortgage-Backed Securities Index has lost 1%.
(Bloomberg) -- Lots of U.S. landlords may be allowed to fall behind on their mortgage payments amid the coronavirus outbreak in return for not kicking renters out of their apartments.The Federal Housing Finance Agency said Monday that Fannie Mae and Freddie Mac will grant mortgage forbearance to owners of multifamily properties in exchange for suspending evictions. The move applies to all Fannie and Freddie-backed mortgages in situations where renters can’t afford to make their monthly payments due to coronavirus.“Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building,” FHFA Director Mark Calabria said in the statement. “The multifamily forbearance and eviction suspension offered by the enterprises should bring peace of mind to millions of families.”Fannie and Freddie, which are regulated by the FHFA, don’t make loans. Instead, they buy mortgages from banks and other lenders and package them into securities. The companies provide guarantees on the securities to protect investors in case borrowers default, a process that keeps the mortgage market humming.The FHFA announced earlier this month that Fannie and Freddie would provide payment forbearance for single-family residences provided that borrowers could demonstrate financial hardship from the spread of coronavirus. Such forbearance could allow monthly mortgage payments to be suspended for as long as a year.Fannie and Freddie, which backstop about $5 trillion of mortgages, have also halted foreclosures for 60 days under orders from the FHFA.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MCLEAN, Va., March 23, 2020 -- Freddie Mac (OTCQB: FMCC) announced today that, effective immediately, it will cease issuing LIBOR-indexed floating rate unsecured debt.
Many investors are looking forward to the day Fannie Mae and Freddie Mac hold their offerings after being released from their conservatorships. However, before that can happen, several issues must be resolved. During a presentation hosted by Odeon Capital last week, former Freddie Mac CEO Don Layton presented a long list of things he believes […]
Lenders rack up mortgage rates once more to curb demand. The spread of the coronavirus will likely see, both demand and rates begin to fall.
Interest rates on home loans shot up higher over the past week as demand for refinances remained strong despite major fluctuations in stock and bond markets. The 30-year fixed-rate mortgage averaged 3.65% during the week ending March 19, an increase of 29 basis points from the previous week, Freddie Mac (FMCC) reported Thursday. This was the largest weekly increase in the average 30-year mortgage rate since November 2016, and it’s the highest mortgage rates have been since mid-January.
Consumers can get relief from payments and fees during the public-health crisis — but they will likely need to ask first.
MCLEAN, Va., March 19, 2020 -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are backed by underlying.