Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Fannie Mae has posted its best refinancing figures in the last 17 years and its Q2 earnings have put in shade its Q1 earnings, demonstrating that it is having a decent time despite the setback faced by the broader economy.

‘Fannie’ believes that its performance can be put down to spiked mortgage purchase activity as well as its ability to tackle credit-related expenses. 

Fannie Mae’s CEO Hugh Frater stated in a conference call that “Our performance during this period benefited from strong underwriting practices that we’ve had in place for the last 10 years.” He further suggested that “Our presence in the market made it possible for more than 1 million homeowners to purchase a home or refinance their mortgage at lower rates during the second quarter.”

The truth behind Frater’s statement clearly establishes itself. Fannie Mae’s activity in the single-family mortgage for Q2 was in surplus of $350 billion. This is a mammoth 84% over the acquisitions made in Q1. The spike can be attributed to a $137 billion hike in the volume of refinancing (sitting at $259 billion).

That Fannie Mae has been able to meet the expectations of credit unions, independent mortgage brokers, and mini financial institutions have given its earnings a boost. 

The Coronavirus can still put paid to Fannie Mae’s euphoria. Its effect can be seen in the 5.7% forborne single-family mortgage at June end. The pandemic has raised Fannie Mae’s serious delinquency levels for the single-family by 200 basis points. 

Related Posts

  • 91
    Freddie Mac believes that the mortgage rates that have climbed by three basis points could come down near record lows shortly. Freddie Mac's chief economist, Sam Khater, stated in a press release that the "Mortgage rates set several record lows over the last few months and have remained low into…
    Tags: mortgage, news, refinance, process
  • 91
    The Mortgage Bankers Association informs that aspiring homeowners are putting behind the Coronavirus scare and filing purchase mortgage applications at a level not seen over the previous decade.  It comes as a bonus that the 30-year fixed loan rates are at their lowest since the MBA’s Weekly Mortgage Applications Survey…
    Tags: mortgage, purchase, refinance, activity, $, news, process
  • 85
    One way to form an opinion about demand is to look at the number of listings that have seen a price hike. One reason for such increases is real estate flipping. Investors buy a property, do some work on it, and sell it at a better price. It is done…
    Tags: mortgage, news, refinance, process
  • 85
    For the first time in four weeks, mortgage applications saw a hike, rising by 2.9% over the last week. The housing demand is atypically strong as we come to the end of summer, says the Mortgage Bankers Association.  The MBA's associate vice president of economic and industry forecasting, Joel Kan,…
    Tags: mortgage, purchase, $, refinance, activity, refinancing, news, process
  • 82
    The novel Coronavirus has come in a year when a good percentage of millennials are turning 30. What this means is that this demographic is stepping into its prime home-buying years in a scary situation. True that 2020 may be a headache-inducing year but looking at the big picture, “millennials…
    Tags: years, mae, mortgage, news, refinance, process