Federal Nat Stock Price, News & Analysis

Fannie Mae (OTCQB: FNMA) has completed its ninth Credit Insurance Risk Transfer™ (CIRT™) transaction for 2022, transferring $700 million of mortgage credit risk to private insurers. This initiative aims to reduce taxpayer risk while increasing private capital in the mortgage market. The covered pool includes approximately 69,000 loans with a total unpaid principal balance of $21 billion. Fannie Mae retains risk for the first 55 basis points of loss, with insurers covering further losses up to $700 million.

Fannie Mae (FNMA) reminds homeowners and renters affected by natural disasters, particularly Hurricane Fiona in Puerto Rico, of available mortgage assistance. Under its guidelines, homeowners can request assistance through their mortgage servicer, who may offer a forbearance plan for up to 90 days. For those impacted, mortgage payments can be reduced or suspended for up to 12 months without incurring late fees. Fannie Mae also provides support through its Disaster Response Network, offering personalized recovery plans and help navigating financial relief options.

Fannie Mae’s Economic and Strategic Research Group has revised its forecasts, predicting a moderate recession starting Q1 2023 due to high inflation and mortgage rates. Despite an anticipated 0.0% real GDP growth in 2022, the full-year 2023 growth forecast has been adjusted to -0.5%. Mortgage rates are expected to peak between 3.50-3.75% in early 2023, contributing to a projected decrease in single-family home sales to 5.71 million in 2022 and 4.98 million in 2023, reflecting declines of 17.2% and 12.8%, respectively. Multifamily construction remains strong but has also seen a forecast reduction.

Fannie Mae (OTCQB: FNMA) announced the results of its twenty-seventh reperforming loan sale, comprising approximately 6,060 loans totaling $986.4 million in unpaid principal balance (UPB). The transaction, which will close on October 26, 2022, features three loan pools awarded to distinct bidders: PIMCO, Credit Suisse, and Barclays. Notably, Pool 1 consists of 1,790 loans with a UPB of $337.8 million, while Pool 2 has 2,217 loans valued at $338.9 million, and Pool 3 includes 2,055 loans worth $309.7 million. The sale emphasizes loss mitigation options for borrowers.

Fannie Mae (OTCQB: FNMA) has priced a $604 million Multifamily DUS REMIC under its Guaranteed Multifamily Structures (GeMS™) program, marking the seventh issuance in 2022. The FNA 2022-M13 deal, priced on September 8, 2022, offers attractive features, including a 10-year call-protected, fixed-rate collateral. Dan Dresser, Senior VP, noted strong investor interest amidst a crowded market. All classes of this REMIC are guaranteed by Fannie Mae for timely interest and principal payments. The structure provides insights into the performance of multifamily loans across diverse U.S. regions.

Fannie Mae's Home Purchase Sentiment Index (HPSI) fell by 0.8 points in August to 62.0, marking six consecutive months of decline. The index is down 13.7 points year-over-year, reflecting heightened concerns over home affordability due to rising prices and mortgage rates. While 73% of respondents viewed it as a 'bad time to buy,' home-selling sentiment also waned. Expectations for home prices turned neutral, with an increasing number anticipating price declines. Additionally, the sentiment about mortgage rates showed a slight increase in those expecting them to drop.

Fannie Mae's August 2022 Economic Outlook forecasts a challenging housing market, driven by rising mortgage rates and elevated inflation. The report predicts a 16.2% decline in total home sales for 2022, with mortgage origination expected to fall from $4.47 trillion in 2021 to $2.47 trillion in 2022 and $2.29 trillion in 2023. Despite a robust labor market, the outlook indicates a modest recession likely due to tighter monetary policies affecting investment and consumer spending.

Fannie Mae (OTCQB: FNMA) has commenced marketing its twenty-seventh sale of reperforming loans, encompassing around 6,130 loans with an unpaid principal balance of $997 million. This initiative is part of efforts to streamline its mortgage portfolio. Interested qualified bidders must submit their offers by September 8, 2022, in partnership with Citigroup Global Markets. The sale requires buyers to provide loss mitigation options for borrowers at risk of re-defaulting within five years. Fannie Mae continues to emphasize responsible homeownership access across the U.S.

Fannie Mae Appoints Cissy Yang as New Chief Audit Executive

On August 10, 2022, Fannie Mae announced the appointment of Cissy Yang as Senior Vice President and Chief Audit Executive, effective September 12, 2022. Yang, with over 25 years of experience in financial services audit, will lead the company's audit strategy and report to both the Board of Directors and the Interim CEO. She replaces Douglas Watt, who is retiring in November 2022. Yang previously held senior roles at Credit Suisse and is expected to enhance Fannie Mae's internal controls and governance.