The dominant role of FNMA and FHLMC in the conforming loan market is reflected by the fact that they securitized over half of these loans and added to their mortgage portfolios as well.
Table 1 Single-Family Mortgage Debt Outstanding, 1968-92 (end-of-year values) Dollar Values (billions of current dollars) 1968 1980 1989 1992 Portfolio lending FNMA portfolio 7 52 91 124 FHLMC portfolio 0 4 18 31 S&Ls 110 411 512 375 Commercial banks 39 160 336 452 Others(*) 109 229 529 591 Subtotal 265 856 1486 1573 Security holdings(**) S&Ls 0 27 200 159 Commercial banks 0 20 129 307 Others(*) 0 63 592 914 Subtotal 0 110 921 1380 Securities issued(**) FNMA MBSs 0 0 220 436 FHLMC PCs 0 14 266 402 GNMA MBSs 0 92 358 411 Private pools 0 4 77 132 Subtotal 0 110 921 1380 Total 265 965 2408 2954 Percent Shares 1968 1980 1989 1992 Portfolio lending FNMA portfolio 2.
The average number of days, expressed as a proportion of the month, that unscheduled principal payments are held in custodial accounts during the month in which the refinancing occurred (GNMA __ this __ month, FNMA __ this __ month, FHLMC
__ this __ month).
Similarly, the characteristics of loans acquired by FNMA and FHLMC
derive, for the most part, from the borrower and geographic composition of conventional home-purchase loan originations.
Basic underwriting guidelines (such as maximum loan-to-value ratios and monthly debt-to-income ratios) also differ among the secondary market participants, although FNMA and FHLMC
follow essentially the same guidelines.
Mortgage securities, such as participation certificates and CMOs issued by FNMA or FHLMC
, are risk weighted at 20 percent because they are government-sponsored agencies that carry only the implied backing of the United States.
They will be updated monthly for FHLMC
, and bi-monthly for FNMA and GNMA.
As an exception to the general rule, under the separate Call Report instruction for "participation in pools of residential mortgages," banks engaging in the disposal of residential mortgage loan pools under the programs of GNMA, FNMA, and FHLMC
are able to treat such transactions as sales of the underlying mortgages without regard to the amount of risk retained by the seller.
All mortgage loans pooled into GNMA, FNMA and FHLMC
MBS pass through certificates;
Program offerings include FHA, VA, USDA, FNMA, FHLMC
, ARM, debt consolidation, construction, home improvement, and other niche & jumbo loans.
Additionally, CPKF earns a pare-off fee for residential mortgage loans that are originated and closed with FHLMC
, which added $620,000 to revenues in 2009 ( both types of fees are included in other noninterest income in the Company's financial statements).
The collateral pool supporting class F currently consists of 11 FHLMC
and FNMA bonds with a total current bond balance of $203,014.
As of July 1, 2009, more than 99% of the mortgage portfolio consisted of GNMA (72%), FNMA (15%) and FHLMC
PC (12%) mortgage-backed certificates, which are fully guaranteed for timely payment regardless of the actual performance of underlying loans.
Our current remaining debt consists of non-recourse financings, recourse financings with fixed term payments, and the repurchase agreements on two FHLMC
As of July 31, 2008, more than 99% of the mortgage portfolio consisted of GNMA (71%), FNMA (15%) and FHLMC
PCs (13%) mortgage-backed certificates, which are fully guaranteed for timely payment regardless of the actual performance of underlying loans.