Mortgage – HousingWire

Planet Financial Group partners with Farmlink Project

Posted: 20 May 2022 11:21 AM PDT

Planet Financial Group will donate $100,000 to a project that distributes food surplus to food banks. The donation will be made to The Farmlink Project, a nonprofit organization that aims to reduce carbon emissions and save millions of pounds of fresh produce by connecting farmers to food banks.

Since Farmlink launched in 2020, more than 50 million people received meals and about 70 million pounds of food were through the project.

"Farmlink is transforming our food system to reduce climate change while providing millions of meals to families in need," said Michael Dubeck, Planet Financial Group's chief executive officer and president.

In addition to the donation from Planet Financial Group, the firm's employees will also volunteer hours to Farmlink initiatives in four cities including Rochester, New York, and Irving, Texas.

"Every year, billions of pounds of produce go to waste while millions of Americans go hungry," said James Kanoff, Farmlink Project's chief executive officer. Farmlink estimates about 31% of food produced go to waste, which could feed families, but instead goes to landfills. Diverting produce from landfills prevents 17 million pounds of carbon dioxide, decreasing the rate of human-caused climate change from agriculture footprint, the organization added.

Planet Financial Group, an integrated family of companies delivering origination, servicing, and asset management solutions, is the parent of Planet Home Lending. Founded in 2007, Planet Home Lending originated $28 billion in 2021, up 45% year over year, becoming the 31st biggest lender in the country, according to Inside Mortgage Finance. The lender ranks 12th in the correspondent channel with a volume of $22.8 billion last year.

In April, Planet Home Lending entered into an agreement to acquire assets from lender Homepoint's delegated correspondent channel for $2.5 million in cash.

The deal for the delegated correspondent assets also include an earnout payment based on Planet Home Lending's correspondent origination volume during the two-year period starting on the closing date of the transaction. The two firms expect the deal to close in the second quarter of this year.

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Fannie Mae chalks up another Credit Insurance Risk Transfer deal

Posted: 20 May 2022 10:07 AM PDT

Fannie Mae has executed its fifth Credit Insurance Risk Transfer (CIRT) deal of 2022, providing up to $733.3 million in mortgage-risk coverage for the private market.

The transaction, CIRT 2022-5 involved a covered loan pool of 67,700 single-family mortgages with a total unpaid principal balance of about $21 billion. The loans in the pool are fixed-rate mortgages with mostly 30-year terms and loan-to-value ratios ranging from 80.1% to 97%, according to Fannie's statement announcing the deal.

With the execution of CIRT 2022-5, Fannie Mae will retain risk for the first 65 basis points of loss on the $21 billion loan pool. If that $136.2 billion retention layer is exhausted, then the 22 insurers and reinsurers that are party to the transaction will cover the next 350 basis points of loss on the pool, up to a maximum of $733.3 million effective as of April 1.

"We appreciate our continued partnership with the 22 insurers and reinsurers that have committed to write coverage for this deal," said Rob Schaefer, vice president for capital markets at Fannie Mae.

The CIRT transactions shift a portion of risk of credit losses on mortgages backed by the government-sponsored enterprises onto insurers in the private sector. The coverage terms for this latest CIRT deal, like the other deals so far in 2022, is based on actual losses for a term of 12.5 years. Fannie Mae can cancel the coverage on each deal after five years by paying a cancellation fee.

CIRT offerings 1, 2, 3 and 4 each work similarly by transferring hundreds of millions of dollars of mortgage credit risk to the private sector. The covered loan pool for CIRT 2 022-1 included 87,600 single-family mortgages valued at $26.1 billion. The covered loan pool for CI RT 2022-2 consisted of some 87,400 single-family mortgage loans with an outstanding unpaid principal balance of $26.5 billion.

CIRT 2 022-3 provides insurance coverage for a pool of 76,600 single-family mortgage loans with an outstanding unpaid principal balance of $23.3 billion. C IRT 2022-4 provided insurance coverage on a pool of 76,600 single-family mortgage loans with an outstanding principal balance of $23.1 billion.

In total, the five CIRT deals so far this year, after Fannie's retention layer is tapped, provide insurance for potential losses on the covered loan pools up to a maximum of $4.2 billion. The covered mortgage loan pools in the five transactions include a total of some 396,000 mortgage loans valued at $120 billion.

"Since inception to date, Fannie Mae has acquired approximately $19.2 billion of insurance coverage on $656.6 billion of single-family loans through the CIRT program," Fannie Mae said in the statement announcing the deal.

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Friday, May 20, 2022