Federal Nat Stock Price, News & Analysis

The Fannie Mae Home Purchase Sentiment Index (HPSI) fell by 3.4 points to 64.8 in June, its second-lowest level in a decade, reflecting growing consumer pessimism about homebuying conditions. Only 20% of consumers believe it's a good time to buy a home, while 68% feel it's a good time to sell, down from 76%. An alarming 81% of respondents think the economy is on the wrong track, with increased concerns over job stability and the affordability of mortgages. Year-over-year, the index is down 14.9 points, signaling ongoing challenges in the housing market.

On July 6, 2022, Fannie Mae (OTCQB: FNMA) announced the pricing of a $381 million Multifamily Social DUS REMIC (FNA 2022-M1S), marking its sixth issuance under the GeMS program in 2022. The issuance aims to support affordable housing for low- to moderate-income households, benefiting over 2,680 units. This offering adheres to Fannie Mae's Sustainable Bond Framework, highlighting its commitment to socially responsible investments. All classes are guaranteed by Fannie Mae for timely payment of interest and principal.

Fannie Mae (OTCQB: FNMA) announced the results of its cash tender offers for Connecticut Avenue Securities (CAS) Debt Notes, which concluded on June 30, 2022. Approximately $4.402 billion in original principal amount of notes were tendered, representing 82.22% of the total $5.354 billion in notes eligible for the offer. The settlement for accepted tenders is expected on July 5, 2022. BofA Securities and Barclays served as lead managers for the offer, and Global Bondholder Services acted as the tender agent.

Fannie Mae (OTCQB: FNMA) has released its May 2022 Monthly Summary, detailing its mortgage portfolio, mortgage-backed securities, and interest rate risk measures. The report also addresses serious delinquency rates. Fannie Mae aims to enhance equitable access to homeownership and affordable rental housing for Americans. The report highlights the company's ongoing commitment to improving the home buying process and maintaining stability in the housing market.

Fannie Mae (OTCQB: FNMA) has priced its Connecticut Avenue Securities (CAS) Series 2022-R07, a note offering of approximately $866 million. This marks the seventh CAS REMIC transaction in 2022, aimed at sharing credit risk from its single-family mortgage portfolio. The reference pool consists of about 101,000 mortgage loans totaling $30.6 billion in unpaid principal. Fannie Mae retains portions of specific tranches, indicating commitment to managing risk. Since inception, Fannie Mae has completed 51 CAS deals, issuing nearly $58 billion in notes and transferring risk on over $1.9 trillion in loans.

On June 24, 2022, Fannie Mae commenced fixed-price cash tender offers for the purchase of Connecticut Avenue Securities^® (CAS) Debt Notes. The offers will expire on June 30, 2022, at 5 PM New York City time. Notable securities include Series 2016-C05, with an original principal balance of $713.3 million and a tender consideration of $1,042.50 per $1,000 principal. Total principal across all offerings is $4.67 billion. Holders must tender their notes before the expiration for eligibility. Settlement is expected on July 5, 2022.

Fannie Mae's June 2022 Economic Outlook indicates that elevated inflation and higher interest rates will negatively impact economic growth and home sales. The projected growth for 2022 is now at 1.2%, with a potential modest recession anticipated in late 2023. Home sales are forecasted to decline by 13.5% this year, and mortgage originations are expected to drop to $2.6 trillion in 2022 and $2.2 trillion in 2023. The report highlights the significant rise in mortgage rates as a primary constraint on the housing market, leading to reduced refinance activity.

Fannie Mae has launched the Refinance Application-Level Index (RALI), a weekly tool for tracking refinance activities and trends in near real-time. Utilizing data from the Desktop Underwriter®, the RALI aims to enhance transparency for lenders and investors, aiding in accurate modeling of refinance behavior. For the week ending June 10, 2022, dollar volume of refinance applications rose by 17.9% week-over-week, though it remains down 69.5% year-over-year. The RALI delivers two main metrics: unpaid principal balance and loan count, contributing to improved prepayment projections.