Fannie Mae (FNMA)

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Is this the wind down President Obama and others were talking about?
March 17, 2015
GSE Market Share Hits Post-Conservatorship Low in 4Q

By John Bancroft

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For the first time since the GSEs were put in government conservatorship over six years ago, the flow of new mortgages sold to Fannie Mae and Freddie Mac accounted for less than half of primary-market production.

According to a new Inside The GSEs analysis, Fannie and Freddie last year securitized $633.6 billion of single-family loans that were no more than three months old. That amount was just 48.8 percent of the $1.240 trillion of home mortgages originated in the primary market last year.

Excluding older loans from MBS issuance figures is at best a rough proxy for measuring the GSE share of new loan production, and the lag between primary market origination of MBS issuance further complicates the issue. But the GSE share in 2014 was down sharply from the year before, when heavy refinance activity dominated the mortgage market.

Fannie and Freddie securitization of newly-originated loans accounted for just 65.7 percent of total MBS issuance last year, primarily because declining refi volume had less of an impact on Ginnie Mae volume. For more on the story and an exclusive table on Fannie/Freddie market share, see Inside The GSEs.