Several updates were made to agency requirements for residential loans. Meanwhile, the value of commercial mortgages recently strengthened.
In Bulletin No. 2010-15, Freddie Mac said it published it implementation guide for loan delivery data. The uniform mortgage data program, jointly developed with Fannie Mae, was originally announced in May. Files delivered after Sept. 1 are impacted.
Fannie announced that its Desktop Underwriter Version 8.1 was released on June 19 — impacting adjustable-rate mortgage qualifying rates, interest-only eligibility and balloon mortgage retirement. The updates were outlined in Announcement SEL-2010-0.
In memorandum APM 10-10, the U.S. Department of Housing and Urban Development clarified questions about Ginnie Mae’s pool processing steps and related timeframes. The questions focus on the period following initial certification by the document custodian and prior to issuance.
“Pursuant to Section 320.5(f) and (i) of Title 24 of the Code of Federal Regulations, Ginnie Mae considers a pool to be delivered, guaranteed, and issued only after the PPA updates the central registry,” HUD said. “Only at that point, consistent with the guaranty agreement, does the issuer convey all right, title and interest in the mortgage loans to Ginnie Mae.”
Changes outlined in APM 10-06 from Ginnie have been delayed, according to memorandum APM 10-09. The changes included the implementation of coupon rates in half or whole percentages. The delay is an attempt to help issuers clear out their securitization pipelines.
Securitized commercial mortgages priced by DebtX were valued at 76.6 percent as the end of May, a news release last week said. Loan values improved from 76.4 percent at the end of April but were lower than 77.6 percent a year earlier.
DebtX Chief Executive Officer Kingsley Greenland explained that a flight to U.S. Treasuries more than offset deterioration in the commercial real estate market.
Volume at DebtX was 58,901 loans for $691 billion during May.
