Fannie Mae

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April 24, 2014 - Inside Mortgage Finance

HUD Chief: ‘Inaction Simply Not an Option’ as Groups Seek Changes to Senate Housing Finance Reform Bill

Declaring this week that “inaction is simply not an option,” Housing and Urban Development Secretary Shaun Donovan said that the Senate’s pending bipartisan housing finance reform bill represents “the single best chance” to overhaul the mortgage-finance market this decade. Speaking in New York at an event co-hosted by the Bipartisan Policy Center, Donovan said the Obama administration is squarely behind the legislative proposal by Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID. “Despite its imperfections, does...


April 24, 2014 - Inside Mortgage Finance

Nonbanks Continue to Claim Larger Share of GSE Business, And May Be Pushing the Credit Box Wider

Nonbank mortgage lenders accounted for a hefty 43.2 percent of single-family mortgages securitized by Fannie Mae and Freddie Mac during the first quarter of 2014, according to a new analysis of loan-level data by Inside Mortgage Finance. Nonbanks delivered $55.8 billion of home loans to the government-sponsored enterprises during the first three months of 2014. That was down 17.7 percent from the previous quarter, but overall GSE business was down even more, by 29.1 percent. Both subsets of the nonbank segment – larger companies that ranked among the top 25 lenders overall and smaller mortgage companies – claimed...[Includes one data chart]


April 24, 2014 - Inside Mortgage Finance

Mortgage Originations Hit 14-Year Low in Early 2014, Market May Struggle to Reach $1 Trillion This Year

Even in the depths of the financial crisis, the mortgage industry was producing more new loans than it did during the first quarter of 2014, according to new Inside Mortgage Finance estimates. Mortgage lenders generated just $235 billion of new home loans during the first three months of this year. That was down 23.0 percent from the fourth quarter’s estimated $305 billion in originations and it was off 58.0 percent from the first quarter of 2013. It was...[Includes one data chart]


April 24, 2014 - IMFnews

Short Takes: FHA Delinquencies Approaching an All-Time Low? / Flagstar’s IO Ticking Time Bomb / More MSR Deals from Phoenix, IMA and MountainView / No to Johnson-Crapo / Promotion for Wingspan Official

So, what does this mean for the industry? Answer: That the Mortgage Mutual Insurance Fund likely will return to health even faster and that maybe there’s room for FHA to cut premiums.


April 23, 2014 - IMFnews

Short Takes: Lenders Begin to Loosen Credit Standards? / Ellie Mae Snafu Called ‘Bizarre’ / MBA, Others Want GSE Reform Now / Applications Slump Again / Sorry, No One’s Making Mortgages

As for details, a spokesman for the company said Ellie isn’t talking about the topic at this time. In an email exchange with IMFnews, mortgage technology consultant Tony Garritano of Progress in Lending called the whole episode “very bizarre”…


April 23, 2014 - IMFnews

Fannie Mae and Freddie Mac Deliver ‘Scorecard’ Comments to FHFA

The score card was the brainchild of former Acting FHFA director Edward DeMarco, who is retiring from the agency at the end of April.


April 23, 2014 - IMFnews

FHFA May Seek Industry Input on G-Fee Hike

In January, newly sworn-in FHFA Director Mel Watt officially delayed a GSE guaranty fee increase that had been scheduled by his predecessor Edward DeMarco.


April 23, 2014 - IMFnews

HUD Chief: ‘Inaction Simply Not an Option’ on GSE Reform; Rumors of a Delay?

Sources tracking the bill’s progress believe that if those votes cannot be lined up in time, then next week’s markup could be delayed by a few days.


April 21, 2014 - IMFnews

Short Takes: CFPB Releases Guide to RESPA and TILA Disclosure Forms/Fannie Forecasts Accelerated Economic Growth in 2Q 2014/FHFA 2014 Scorecard ‘Soon’/Congress Remains in Recess This Week

ICYMI: Late last week, the Consumer Financial Protection Bureau released its guide to completing its integrated disclosure forms under the Real Estate Settlement Procedures Act and the Truth in Lending Act.


April 21, 2014 - IMFnews

Fannie: Second-Home Mortgages Rebounding

A new report by Fannie Mae finds that second-home mortgage market activity is in the midst of a strong rebound, representing a small yet significant corner of the mortgage market.


April 21, 2014 - IMFnews

Growing Opposition to Senate GSE Reform Could Stall Bill Markup

While Congress is halfway through its two-week Easter/Passover recess, political pressure continues to build against the Senate’s bipartisan housing finance reform legislation, leading to growing doubt whether the scheduled markup of the bill will occur as scheduled later this month.


April 18, 2014 - Inside The GSEs

Fannie, Freddie Refi Deliveries Continue to Decline in March

A sustained decline in GSE refinances, coupled with faltering purchase activity throughout the first quarter, helped contribute to an overall drop in the volume of single-family mortgages securitized by Fannie Mae and Freddie Mac in March. In the first quarter of 2014, Fannie and Freddie combined for $355.8 billion in new single-family securitizations, down 63.7 percent year-to-date.In March, Fannie and Freddie produced just $37.6 billion of single-family MBS, down 15.6 percent from February. It was the lowest monthly volume since January 2009.


April 18, 2014 - Inside The GSEs

Enterprise Endnotes

Activity Plunges. Fannie Mae and Freddie Mac securitized just $29.95 billion of single-family mortgages with private mortgage-insurance coverage during the first quarter of 2014, a 30.9 percent decline from the previous period, according to an analysis and ranking by Inside Mortgage Finance, an affiliated publication. The steepness of the private MI downturn was in line with the 29.1 percent downturn in overall business at the two GSEs from the fourth quarter of 2013. And the flow of private MI loans in early 2014 was down 40.2 percent from the first quarter of last year, a less severe drop than the 63.7 swoon in the overall GSE market over that period.


April 18, 2014 - Inside The GSEs

OCC: Freddie Re-Default Mods Slightly Ahead of Fannie

Modified Freddie Mac mortgages performed somewhat better than Fannie Mae loans in the short term while the performance gap between the two GSEs closed two years after modification, according to the Office of the Comptroller of the Currency. The OCC’s latest Mortgage Metrics Report noted that Freddie loans had a 15.9 percent re-default rate three months after modification, while Fannie mods saw a 16.4 percent rate. At the six-month mark, Freddie stood at 22.7 percent compared to Fannie’s 23.6 percent.


April 18, 2014 - Inside The GSEs

GOP Members Urge Continued Housing Trust Fund Non-Payments

The recently installed head of the Federal Housing Finance Agency is getting a lot of conflicting advice about whether Fannie Mae and Freddie Mac should contribute to the housing trust funds. Last week in a letter to FHFA Director Mel Watt, House Financial Services Committee Chairman Jeb Hensarling, R-TX, urged Watt to continue the Finance Agency’s five-year old policy of withholding GSE contributions to the trust funds. Hensarling’s letter – co-signed by Reps. Scott Garrett, R-NJ, and Ed Royce, R-CA – followed a similar letter by GOP senators in early March, which countered a January letter by 33 Democrats calling on Watt to authorize Fannie and Freddie funding to the National Housing Trust Fund immediately.


April 18, 2014 - Inside The GSEs

FHFA/Chicago Settlement Calls for GSE Compliance, No Fee Payments

The Federal Housing Finance Agency and the city of Chicago have reached a face-saving settlement in a longstanding legal dispute over whether Fannie and Freddie, as entities under federal conservatorship, are subject to the city’s vacant-building ordinance. Under the terms of a settlement reached earlier this month but announced last week, the two GSEs will voluntarily register vacant properties with the city but won’t be subject to a $500 registration fee. The FHFA will also no longer seek to recover registration fees or penalties already paid to Chicago.


April 18, 2014 - Inside The GSEs

GSE Shareholder Advocates Come Out Against Senate Reform Bill

New groups of disgruntled GSE junior shareholders have taken their demands for redress to the next level by rallying against the Senate’s pending bipartisan housing finance reform legislation. Earlier this month, the Coalition for Mortgage Security said it would campaign for legislation that protects the rights of Fannie Mae and Freddie Mac investors. The group opposes the reform legislation fronted by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID, the chairman and ranking member, respectively, of the Senate Banking, Housing and Urban Affairs Committee.


April 18, 2014 - Inside The GSEs

Industry Impatiently Awaits Policy Statement from New FHFA Head

While the mortgage and housing industry awaits with growing impatience for a public statement from the recently appointed head of the Federal Housing Finance Agency, market observers expect Mel Watt to speak only when he is good and ready. The former 11-term North Carolina Democrat Congressman has been silent since he was sworn in to his position as FHFA director in early January. Watt has made almost no public statements nor granted any media interviews but he has spent the past weeks “doing his homework” and quietly meeting with industry trade groups seeking input.


April 18, 2014 - Inside Mortgage Trends

Fannie: Second-Home Mortgages Rebounding

A new report by Fannie Mae finds that second-home mortgage market activity is in the midst of a strong rebound, representing a small yet significant corner of the mortgage market. Fannie’s report – Second Homes: Recovery Post Financial Crisis – noted that the uneven economic recovery has a benefit to the second-home buyer, who tends to be older, earns more and consequently has the means to make a larger downpayment ... [Includes one data chart]


April 18, 2014 - Inside The GSEs

Growing Opposition to Senate GSE Reform Bill Could Delay Markup

While Congress is halfway through its two-week Easter/Passover recess, political pressure continues to build against the Senate’s bipartisan housing finance reform legislation, leading to growing doubt whether the scheduled markup of the bill will occur as scheduled later this month. At the moment, the Senate Banking, Housing and Urban Affairs Committee has only the bare minimum majority of 12 of the 22 committee members pledged to support the GSE legislative reform bill crafted by Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID.


April 18, 2014 - Inside MBS & ABS

Agency REMIC Volume Declined in Early 2014, But Not as Fast as MBS Issuance

Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $60.2 billion of real estate mortgage investment conduits backed by single-family MBS during the first quarter of 2014, a relatively modest decline of 11.6 percent. New MBS issuance by the agencies fell by 26.2 percent from the fourth quarter of 2013 and was down 59.5 percent from the first three months of 2013. Freddie actually increased...[Includes two data charts]


April 18, 2014 - Inside MBS & ABS

Eminent Domain Proponent Mortgage Resolution Partners Has Lost Two Top Officers; Is it Toast?

Two of the top officers have left Mortgage Resolution Partners, the company that rattled Wall Street by trying to convince hard-pressed local governments to use eminent domain to seize underwater mortgages. The latest to depart is John Vlahoplus, who held the title of chief strategy officer. Vlahoplus, who could not be reached for comment, has taken a position with Credit Suisse. The other, more crippling departure is that of Graham Williams, CEO of the San Francisco-based private equity firm. He told Inside MBS & ABS that he officially cut ties with the company at the end of March. Steven Gluckstern, who serves as chairman of MRP, took on the title of acting CEO. At press time, he could not be reached for comment. Under the MRP scheme, local governments would offer...


April 18, 2014 - Inside MBS & ABS

Preservation of TBA Market Under Johnson-Crapo A Concern as Markup in Senate Committee Looms

The Senate Committee on Banking, Housing and Urban Affairs held more than 10 hearings last year in advance of the housing-finance reform bill introduced in March by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID. However, the bill appears to be far from perfect, as industry participants are angling to make suggestions for changes as the committee plans a markup at the end of this month. Perhaps the biggest outstanding issue with S.1217 is that even though the Johnson-Crapo bill calls for the preservation of the to-be-announced market, the capital-markets execution contemplated under the new housing-finance system might not be compatible with TBA transactions. The Johnson-Crapo version of S. 1217 doesn’t have...


April 17, 2014 - Inside Mortgage Finance

Mortgage Complaints to CFPB See Big Drop From Year Ago, Mostly on Plunge in Loan-Mod Gripes

Total consumer complaints to the Consumer Financial Protection Bureau rose 34 percent year-over-year in the first quarter, but gripes about home mortgages fell 29.3 percent from year-ago levels, according to a new analysis by Inside the CFPB, an affiliated newsletter. The strong improvement from last year was driven largely by a 46.8 percent plunge in grievances about loan modifications. But complaints about servicing in general were up 21.4 percent from the first quarter of last year, while the other five mortgage-related categories were lower. Gripes having to do with loan application or other origination-related issues fell 26.7 percent from the first quarter of 2013. The number of gripes that were responded to in a timely manner fell...


April 17, 2014 - Inside Mortgage Finance

Small Lender Groups Seek Changes to Johnson-Crapo Proposal as Liberal Senators Disparage Bill’s Chances

The drumbeat of opposition to the Senate’s housing finance reform legislation grew louder this week after a coalition of small lender groups said the proposal needs to be modified. Some lawmakers are openly disparaging the bill’s prospects, prompting open speculation that the scheduled April 29 markup will be postponed. The bipartisan housing-finance reform bill crafted by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID, would replace Fannie Mae and Freddie Mac with a new secondary-market structure through which a variety of private entities could issue mortgage-backed securities with a partial government guaranty. It specifically provides for one or more mutually-owned companies that would provide access for smaller lenders. The proposed legislation also sets up...


April 17, 2014 - Inside Mortgage Finance

Both Purchase-Mortgage and Refinance Volume Down Sharply in Agency Activity

Fannie Mae, Freddie Mac and Ginnie Mae saw much lower business volume in both purchase-money mortgages and refinance loans during the first quarter of 2014, according to a new Inside Mortgage Finance analysis and ranking. The agencies securitized a total of $95.9 billion of purchase mortgages during the first three months of the year, down 28.8 percent from the previous quarter. That was a steeper decline than in refinance volume, which slid 24.7 percent from the fourth quarter of 2013. Compared to a year ago, the purchase market continued...[Includes three data charts]


April 16, 2014 - IMFnews

DeMarco Touts Common Securitization Platform on His Way Out

With Mel Watt remaining silent, Ed DeMarco used one of his last days at the Federal Housing Finance Agency to reminisce.


April 15, 2014 - IMFnews

GSEs Will Comply with Chicago's Vacant Property Rule But Not Pay Under Settlement by FHFA

The FHFA and Chicago settled a legal battle that started in November 2011 regarding maintenance and fees for vacant properties.


April 15, 2014 - IMFnews

SHORT TAKES: Negative Outlook / Fannie to Assess Late Fees / Servicers Implement CFPB Rules / Crowdfunding Servicing Purchases / Johnson-Crapo Outlook

DBRS suggests it's likely that most of the U.S. population won't be able to qualify for a mortgage any time soon...


April 11, 2014 - IMFnews

What We’re Hearing: Mel Watt Doing His Homework? / Coming Soon (Maybe) From FHFA: LLPA Relief / RIP: The First-Time Homebuyer / Blame Sandra Thompson? / Bank of America Loan Officers Getting Cherry-Picked / Ocwen Hangs Up on Borrower

FHFA Director Mel Watt may have something to say soon on the topic of Fannie Mae/Freddie Mac loan level price adjustments, commonly known as LLPAs. As for the GSE 'Scorecard'...


April 10, 2014 - Inside Mortgage Finance

Community Banks Continue Battering at Dodd-Frank While MBA Presses for Flexibility to Fix Problems

It will be difficult to tell whether the Dodd-Frank Act is driving waves of small lenders out of the mortgage market or whether a severe drought in new production is an equally weighty factor, but community lenders may be gaining some ground among policymakers. At a hearing in the House Financial Services Committee this week, Chairman Jeb Hensarling, R-TX, read at some length from a letter he received from a small mortgage banker in central Texas who said his firm is being forced out of the market because of the cost and complexity of regulatory compliance. The major culprit is the wave of mortgage regulations imposed by the Consumer Financial Protection Bureau under the Dodd-Frank Act. Hensarling did not reveal the company’s name. Rep. Shelley Moore Capito, R-WV, who chairs the Financial Institutions and Consumer Credit Subcommittee, reiterated...


April 10, 2014 - Inside Mortgage Finance

Opposition to Senate GSE Reform Mounts as Shareholder Advocate Predicts Bill Will ‘Collapse Under Its Own Weight’

An array of advocacy groups – both well established and newly formed – have stepped up their lobbying efforts as the Senate Banking, Housing and Urban Affairs Committee moves toward a scheduled markup of increasingly controversial mortgage-finance reform legislation. A lot of the noise is coming from disenfranchised investors in Fannie Mae and Freddie Mac junior preferred stock and common stock who want to scuttle the bipartisan reform bill put together by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID. Their legislation is silent on the fate of public stockholders of the two government-sponsored enterprises, and it leaves intact the conservatorship arrangement that strips virtually all the capital from the two GSEs every quarter. In a press conference called by Investors Unite, a group of individual GSE shareholders, and consumer advocate Ralph Nader’s Shareholder Respect, CapWealth Advisor CEO Tim Pagliara predicted...


April 10, 2014 - Inside Mortgage Finance

Indicators Point to Historically Weak Origination Market in Early 2014, Potential Culling of Herd

Early indicators suggest that mortgage originations slumped by about 23 percent in the first quarter of 2014, a harbinger of tough times to come for companies that are running on fumes. According to a new Inside Mortgage Finance analysis of loan-level data in Fannie Mae and Freddie Mac first-quarter securitizations, primary market originations for the first three months of the year totaled about $235 billion. Unless the pace picks up, 2014 could fail to reach $1 trillion for the first time since 1998. Lender surveys, which are the major factor in Inside Mortgage Finance originations estimates, are underway. Weak origination volume is...


April 10, 2014 - Inside Mortgage Finance

GSE Purchases of Loans With Private MI Dropped Sharply in Early 2014, Biggest Drop in HARP Pace

Fannie Mae and Freddie Mac securitized just $29.95 billion of single-family mortgages with private mortgage-insurance coverage during the first quarter of 2014, a 30.9 percent decline from the previous period, according to a new Inside Mortgage Finance analysis and ranking. The steepness of the private MI downturn was in line with the 29.1 percent downturn in overall business at the two government-sponsored enterprises from the fourth quarter of 2013. And the flow of private MI loans in early 2014 was down 40.2 percent from the first quarter of last year, a less severe drop than the 63.7 swoon in the overall GSE market over that period. The biggest decline in MI-insured business was in underwater mortgages that were refinanced while keeping their existing coverage under the Home Affordable Refinance Program...[Includes two data charts]


April 9, 2014 - IMFnews

FHFA Pulls Out the Stop Sign on Servicing Sale to Non-Traditional Buyer

Since late last year, the FHFA has decreed that it must approve any GSE servicing sale of 25,000 loans or more, which translates into roughly $5 billion of product.


April 9, 2014 - IMFnews

GSE Shareholder Group Predicts Certain Death for Johnson-Crapo

The chairman and CEO of CapWealth Advisors – a private equity firm with stakes in the GSEs – was critical of all the housing reform bills introduced so far and the premise that Fannie and Freddie need to be wound down to affect reform.


April 9, 2014 - IMFnews

More Non-Agency MBS Settlements Expected After Citigroup’s Agreement

The terms of the MBS settlement are subject to approval by the Federal Housing Finance Agency due to Freddie Mac’s involvement.


April 8, 2014 - IMFnews

Short Takes: The (Mortgage) Empire Strikes Back! / And the GSE Joiners Are… / The Junior Preferred Shareholders, Where Are They Today? / Yet Another GSE Shareholder Advocacy Group / Come On, You Can Say It: We Like the Current System

Why doesn’t the MBA, NAHB and National Association of Realtors just come out and say what they really mean, which is this: Leave Fannie and Freddie alone, return them to their shareholders and they’ll never buy another ALT A or subprime mortgage again.


April 7, 2014 - IMFnews

Short Takes: Ocwen Sees Payroll Costs Spike / Help Save the 30-Year FRM and GSE Shareholders Too! / Fairholme Wins Again / Delinquencies Fall, Again / Fannie Tweaks HomePath Program

Ocwen's stock has been floundering of late, but its payroll is headed north on a rocket.


April 7, 2014 - IMFnews

The Next Front for Indemnifications and Buybacks: FHA and Credit Unions

“Not only will FHA continue to go after the big banks, but they’re going after the mid-sized banks as well,” said Andrew Henscel, whose firm defends originators.


April 4, 2014 - Inside Mortgage Trends

GSE Production by State: 1Q14

One full-page chart.


April 4, 2014 - Inside Mortgage Trends

Buyback Woes Easing, But Defense Still Important

Fannie Mae and Freddie Mac at yearend wrapped up most of the massive amount of repurchase demands tied to their pre-2008 books of business, which likely means less business for law firms and companies that help lenders defend buyback demands. But Resolution Portfolio Management & Oversight sees the new buyback era as an opportunity, especially for boutique firms like itself. “A lot of our competitors are out of business,” said Andrew Henschel, RPM’s executive vice president. “Their business model was based on volume. We’re a boutique. If we don’t win, we don’t get paid.” Indeed, these are trying times for some due-diligence firms. Last fall, Allonhill LLC sold most of its assets to Stewart Lender Services. Then a few months later, Allonhill owner Sue Allon threw what was left of the firm into bankruptcy protection after...


April 4, 2014 - Inside The GSEs

Enterprise Endnotes

Seniors Group Targets Johnson-Crapo Bill Supporters With Paid Media. A right-leaning seniors advocacy group has taken out television and radio ads in seven states to call out supporters of the Senate’s bipartisan proposal to overhaul Freddie Mac and Fannie Mae, labeling it “Obamacare for the mortgage industry.” The 60 Plus Association campaign targets seven senators for supporting a measure by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID, arguing that the bill would wipe out GSE shareholders. Three Democrat and four Republican senators were named in the campaign.


April 4, 2014 - Inside The GSEs

Advocates to Treasury: Deem GSEs ‘Systemically Important’

With housing finance reform unlikely to clear Congress in the near term even as Fannie Mae and Freddie Mac remain “highly leveraged” on a global scale, a pair of policy advocates are urging Treasury Secretary Jack Lew to trigger existing protective regulations under his discretion that would classify the two GSEs as systemic risks to the economy. American Enterprise Institute Fellow Alex Pollock and Thomas Stanton, author and former Financial Crisis Inquiry Commission staffer, petitioned Lew in a letter this week to act in his capacity as chairman of the Financial Stability Oversight Council and designate Fannie and Freddie as Systemically Important Financial Institutions.


April 4, 2014 - Inside The GSEs

Experts: GSE Shareholders Face Uphill Legal Battle vs. Government

Fannie Mae and Freddie Mac junior shareholders face an uphill battle in their lawsuits challenging the Treasury’s August 2012 “net worth sweep” that effectively allows Uncle Sam to confiscate all of the companies’ profits, warns a legal expert. Investors are challenging the amended agreements regarding the seniority of Fannie and Freddie preferred stock owned by the federal government over investors’ GSE preferred stocks. More than a dozen lawsuits filed against the government – led by hedge funds Perry Capital and Fairholme Capital Management – are pending in federal district court in Washington, DC, and in the Court of Federal Claims.


April 4, 2014 - Inside The GSEs

OIG Slams FHFA’s Oversight of GSEs’ Pre-Foreclosure Reports

The Federal Housing Finance Agency’s oversight of Fannie Mae’s and Freddie Mac’s pre-foreclosure inspection process can and should be enhanced by strengthening quality assurance and controls, according to a new audit by the agency’s Office of the Inspector General. The FHFA-OIG audit found potential fraud in property inspection reports ordered by the two GSEs. Among the findings: the property inspection reports – which are used for foreclosures – contained inaccurate information that conflicted with corresponding photographs.


April 4, 2014 - Inside The GSEs

House Dems Seek GSE Jobless Moratorium via Bill, Regulation

Whether by legislation or by regulation, a group of House Democrats want Fannie Mae and Freddie Mac to give unemployed homeowners a break by issuing a foreclosure moratorium. Last month, Rep. Matt Cartwright, D-PA, filed H.R. 4255, the Stop Foreclosures Due to Congressional Dysfunction Act, which would require the Federal Housing Finance Agency to establish a six-month moratorium on GSE-guaranteed mortgages held by homeowners who have lost their emergency unemployment compensation “due to congressional inaction.” The bill requires that borrowers must have been in good standing prior to losing their unemployment benefits in order to be eligible for the temporary forbearance.


April 4, 2014 - Inside The GSEs

BofA MBS Lawsuit Settlement Shrinks List of FHFA Defendants

It’s only a matter of time before the remaining big bank defendants settle lawsuits filed by the Federal Housing Finance Agency over billions in non-agency mortgage-backed securities sold to Fannie Mae and Freddie Mac in the years leading up to the housing crisis, predicts a legal expert. Last week, Bank of America agreed to a $9.3 billion settlement that covers its own dealings as well as those of Countrywide Financial and Merrill Lynch, which it acquired in 2008. The agreement covers some $57 billion of MBS issued or underwritten by these firms.


April 4, 2014 - Inside The GSEs

FHFA’s 2014 Conservatorship Scorecard Under Review by GSEs

The Federal Housing Finance Agency has sent a draft 2014 Conservatorship Scorecard to Fannie Mae and Freddie Mac for review, but it remains unclear how different it will be from the GSE goals the FHFA set for last year. According to industry officials who have been briefed on the matter, the scorecard will likely be released by month’s end. The scorecard was the brainchild of former FHFA Acting Director Edward DeMarco, who led the agency for more than four years before former Rep. Mel Watt, D-NC, assumed a five-year term as the agency’s director in early January.


April 4, 2014 - Inside The GSEs

Senate GSE Reform Faces House Competition, Growing Opposition

Mounting opposition from both the left and the right, a month-long wait to mark-up and newly filed competing legislation in the House could doom the already tenuous effort by two senior senators to move a GSE reform bill this year, say industry observers.Given the need for speed and a closing legislative window, last week’s announcement by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID, that the Senate Banking, Housing and Urban Affairs Committee would mark up their housing finance reform package on April 29 – well over a month after the bill’s initial March 16 rollout – is not seen as a good sign.


Poll

What do you think is the biggest hurdle to meeting the new QM standards in the CFPB’s ability-to-repay rule?

A debt-to-income (DTI) cap of 43%.

48%

A 3% cap on points and fees.

29%

An interest rate cap of the average prime offered rate (APOR) plus 1.5%.

23%

Housing Pulse