2017 HW Tech100 Winner: Freddie Mac

 

INVESTMENTS

Loan Advisor Suite features several tools and capabilities to help lenders achieve new operational efficiencies and improve loan quality.

The solutions suite includes Loan Product Advisor, an automated underwriting system; Loan Collateral Advisor, an appraisal quality and valuation risk tool and Loan Quality Advisor, which assesses loan data to help determine sale eligibility.

The suite also features tools such as Loan Closing Advisor, which helps lenders close loans confidently and reduces repurchase risk related to closing data; Loan Coverage Advisor, which tracks the representation and warranty obligations of loans sold to Freddie Mac, and Business Intelligence, a solution that monitors detailed data to help lenders produce high-quality loans.

freddiemac.com

 

Freddie Mac Prices $241 Million Multifamily K-Deal, K-J12

MCLEAN, VA–(Marketwired – Feb 28, 2017) – Freddie Mac ( OTCQB : FMCC ) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) that are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $241 million in K Certificates (K-J12 Certificates), which are expected to settle on or about March 14, 2017.

K-J12 Pricing

Details

  • Lead Manager and Sole Bookrunner: Morgan Stanley Co. LLC
  • Co-Managers: Cantor Fitzgerald  Co., Drexel Hamilton, LLC, Merrill Lynch, Pierce, Fenner Smith Incorporated, and Wells Fargo Securities, LLC

Related Links

The K-J12 Certificates are backed by corresponding classes issued by the FREMF 2017-KJ12 Mortgage Trust (KJ12 Trust) and guaranteed by Freddie Mac. The KJ12 Trust will also issue certificates consisting of the Class B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J12 Certificates.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2016, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2016, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

BRIEF-Freddie Mac February 2017 outlook


Feb 28 Federal Home Loan Mortgage Corp

* Freddie Mac February 2017 outlook

* Freddie Mac says recent reports indicate that consumer
price inflation is rising

* Freddie Mac says rising inflation would have a significant
impact on housing markets by driving up mortgage interest rates
in 2017

* Freddie Mac says rapidly rising interest rates have
negative impact on housing mortgage markets causing home sales
mortgage originations to decline significantly

Source text for Eikon:
Further company coverage:

Massachusetts Association of Realtors announces new president …

MEDWAY — Paul Yorkis, president of Patriot Real Estate Inc., was installed Dec. 5, 2016, as president of the 24,000-member Massachusetts Association of Realtors for 2017. The event took place at the Edward M. Kennedy Institute in Boston, and included the installation of the MAR board of directors and executive committee. Yorkis’ term officially began on Jan. 1.
As president, Yorkis will direct the internal and external activities of the association; preside at all meetings of the MAR board of directors and executive committee; represent the association at important meetings and business functions; and act as the official spokesperson for the association on issues related to the real estate industry and local housing market.
Prior to starting his term as president, Yorkis served the MAR president-elect and the chairperson of the RPAC board of trustees. He was the MAR government affairs vice president in 2015. Yorkis is a member of the executive, finance and professional standards committees. Yorkis also served as the federal political coordinator for Rep. Joe Kennedy in 2013, the year Kennedy was elected the U.S. Representative for Massachusetts’s 4th Congressional District. In 2011, Yorkis was named Massachusetts Realtor of the Year.
At the local level, Yorkis is a member of the board of directors for the Greater Boston Real Estate Board. He is also a member of the professional standards committee and rental issues task force. Yorkis is also a certified professional standards mediator for GBAR.
At the national level, Yorkis served on the NAR board of directors. He is a member of the professional standards, public policy coordinating and state and local issues policy committees. Yorkis is a founding member of the Charitable Foundation Roundtable Exchange, and past director of the Disaster Relief Foundation.

Deana Stolpe Earns NAR Designation

VALPARAISO – Deana Stolpe with Stolpe Real Estate has earned the nationally recognized Seniors Real Estate Specialist® designation from the Seniors Real Estate Specialist Council of the National Association of Realtors®.

Deana joins more than 15,000 real estate professionals in North America who have earned the SRES® designation.  All were required to successfully complete a comprehensive course in understanding the needs, considerations, and goals of real estate buyers and sellers aged 55 and older.

Working with seniors to meet their housing needs requires an expert understanding of their lifestyle and financial needs, and the SRES® designation means that a Realtor® has that understanding. Whether they are buying, selling relocating or refinancing, seniors can be confident that Deana, a Realtor® designated SRES,® will be able to help them every step of the way.

SRES® Council, founded in 2007, is the world’s largest association of real estate professionals focusing specifically on representing senior clients in real estate transactions. There are more than 15,000 active members of the organization world-wide.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.1 million members involved in all aspects of the residential and commercial real estate industries.

For more information, visit SRES.org.

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Santa Clara County Association of REALTORS® and VNARP …

SAN JOSE, Calif., Feb. 28, 2017 /PRNewswire/ — Looking to tap into the growing international real estate market, members of the Santa Clara County Association of REALTORS® (SCCAOR) will join the Vietnamese National Association of Real Estate Professionals (VNARP) on a ten-day trade mission to Vietnam starting on March 1st. Delegates representing both groups are aiming to foster mutual investment opportunities between real estate stakeholders in both Vietnam and the United States.

“Vietnam is forecasted to be one of the top growing economies in the next few decades,” said Evan Huynh, President of VNARP. “This trade mission will give our delegates the opportunity to exchange trade experience and learn about the best practices for investment opportunities in both countries.”

Delegates from the groups will attend real estate conferences and meet with Vietnamese companies and government agencies in Ho Chi Minh City, Ha Noi, and Danang ─ three cities currently experiencing a boom in real estate development. Several delegates from the United States will be giving special presentations at these events, including: Lieu Nguyen, the President’s Liaison to Vietnam for the National Association of REALTORS®, Ron Gonzales, former Mayor City of San Jose and President of Presencia, LLC, and Hilda Ramirez, the Director of Public Relations, Events, and Education for SCCAOR.

Hilda Ramirez, who led SCCAOR Members on a similar trip to China in 2015, said that REALTORS® are starting to embrace the global market when it comes to real estate investment. “The theme for this Inaugural Trade Mission is to ‘Connect Cultures to Create Commerce’,” she said. “Silicon Valley is home base for technology and innovation, considered one of the most thriving economies in the world, and the economic impact happening in many Vietnamese cities is truly dynamic. We are honored to have the opportunity to join VNARP in this unique opportunity. It is essential for today’s business professional to be well versed on emerging markets.”

Silicon Valley, Ho Chi Minh City, and Ha Noi all rank in the top 10 of the World’s “Most Dynamic Cities of 2017” according to the JLL City Momentum Index. This index was calculated by examining over 40 variables such as innovation capacity, technological prowess, commercial real estate momentum, and a host of other socio-economic factors.

For updates on the trip, visit the Santa Clara County Association of REALTORS® on Facebook at www.facebook.com/sccrealtors

Contact: Spencer High 
Phone: 408.445.5095 
spencer@sccaor.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/santa-clara-county-association-of-realtors-and-vnarp-embark-on-real-estate-trade-mission-to-vietnam-300415126.html

Fannie Mae Secures Second CIRT Transaction – DSNews

fanniemaeFannie Mae announced recently that it has secured commitments for a second front-end Credit Insurance Risk Transfer (CIRT) transaction. The risk transfer will have been committed prior to Fannie Mae’s acquisition of the covered loans, and the insurance coverage will be effective as soon as the loans are acquired. Coverage and pricing are committed for 12 months, beginning with first quarter 2017 deliveries.

The transaction will move a part of credit risk on pools of single-family loans with a combined unpaid principal balance of approximately $15 billion to a group of reinsurers. This will consist of 30-year fixed-rate loans with loan-to-loan value ratios greater than 60 percent and less than or equal to 80 percent.

Fannie Mae will continue to offer its previous CIRT transactions.

“With this transaction, Fannie Mae pioneers new ground by securing the longest and largest forward commitment ever transacted for a GSE risk transfer transaction, locking in our pricing for the full 2017 calendar year,” said Rob Schaefer, VP for Credit Enhancement Strategy Management. “This deal also demonstrates our continued market leadership by providing a high level of transparency with respect to the deal pricing and structure.”

Fannie Mae’s first Credit Insurance Risk Transfer took place in 2016. At that time, DS News took the opportunity to sit down with Schaefer, to get an insider’s perspective on what potential bidders can anticipate with these transactions in 2017. “Risk transfer now [is] part of Fannie Mae’s core strategy for how we manage our own risk, and how we protect against unexpected market stress cycles, and also protect tax payers by transferring risk away from Fannie Mae to private capital,” he said.

Schaefer went on to discuss the unique transparency of CIRT transactions. “We have made available, for free, millions and millions of data records on our loans going all the way back to loans that we’ve acquired since 2000, which provides an enormous free database for anybody to go in and analyze the data, build models. It’s almost unprecedented in the world of insurance and reinsurance to have that much data to start off with to help understand the risk,” he said.

For the first 50 basis points of loss, Fannie Mae will retain risk on a pool of loans of approximately $15 billion. Fannie Mae’s complete disclosure of last year’s CIRT program can be found here.

QuickTake: The Future of Fannie Mae and Freddie Mac

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Fannie Mae Releases January 2017 Monthly Summary

WASHINGTON, Feb. 28, 2017 /PRNewswire/ — Fannie Mae’s (OTC Bulletin Board: FNMA) January 2017 Monthly Summary is now available. The monthly summary report contains information about Fannie Mae’s monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, serious delinquency rates, and loan modifications.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fannie-mae-releases-january-2017-monthly-summary-300415253.html

Fannie And Freddie Were ‘Robbed’ By Obamacare (OTC:FNMA …

Fannie And Freddie Were 'Illegally Robbed' By Obamacare, Infowars Claims In New Report

It has been a difficult month for investors of Federal National Mortgage Assctn Fnni Me (OTC: FNMA) and Federal Home Loan Mortgage Corp (OTC: FMCC) investors.

Shares of both Fannie Mae and Freddie Mac are down more than 302 percent in the past month after an appeals court upheld a ruling against shareholders challenging the illegality of the terms of the government’s conservatorship. Specifically, shareholders believe the government’s net-worth sweep of 100 percent of Fannie and Freddie’s profits is unconstitutional.

Typical Argument

Infowars on Monday presented a summary of the typical argument that Fannie and Freddie shareholders hoped would earn them a favorable court ruling.

During the mortgage crisis, Fannie and Freddie got caught with $1.5 trillion in mortgage debt on their books and required a $185 billion bailout from the government. As part of the bailout deal, the GSEs were placed under conservatorship. The U.S. Treasury was issued warrants to purchase 79.9 percent of Fannie and Freddie’s common shares for a “nominal” price of $0.00001 per share.

Related Link: Buffett: Fannie And Freddie Aren’t Needed

The two GSEs also issued the Treasury $1 billion in preferred shares with an annual dividend yield of 10 percent. Neither were profitable from 2008 to 2011, so they were forced to issue even more preferred shares to the Treasury to pay their dividends. Fannie and Freddie finally returned to profitability in 2012 and were able to pay dividends out of their own income for the first time.

Unfortunately for Fannie and Freddie common stock shareholders, the Treasury made an amendment to the terms of the agreement shortly thereafter.

Starting in 2012, Fannie and Freddie were forced to pay 100 percent of their net income to the Treasury in what was called a “net-worth sweep,” leaving the two GSEs’ common shares essentially worthless.

Unconstitutional?

Infowars, which has earned a reputation for absurd and often comically critical headlines concerning President Obama, argues that the government’s modification of the original terms of Fannie and Freddie’s bailout agreement in 2012 was unconstitutional.

Unfortunately for Fannie and Freddie investors, two courts have now disagreed with that conclusion.

Infowars alleges the Obama administration created the net worth sweep to help fund Affordable Care Act health insurance subsidies that would otherwise be underfunded.

A Congressional Budget Office (CBO) report linked in the story clarifies that the previous administration considered inflows from Fannie and Freddie to be “outside of the federal government for budgetary purposes” because those funds were not taxpayer-generated. In that respect, the administration claims it needed no Congressional approval to appropriate the funds.

Infowars suggests the administration illegally routed these funds directly into Obamacare subsidies, but shareholder attorneys have so far failed to convince two different courts that they have a viable case.

At this point, shareholders’ final chance at getting the net worth sweep struck down in court likely means convincing the U.S. Supreme Court to disagree with the rulings of the district court and the appeals court. Of course, if President Donald Trump and Treasury Secretary Steven Mnuchin decide to re-capitalize Fannie and Freddie and turn control back over to shareholders, investors may not even need the courts to see some major upside.

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