Federal Home Loan Banks

Browse articles from all of our Newsletters related to Federal Home Loan Banks.

July 11, 2014 - Inside The GSEs

Freddie Announces Second ACIS Deal of 2014, Largest to Date

Freddie Mac last week announced its second Agency Credit Insurance Structure of 2014, through which it buys insurance to lay off risk. The GSE said its purchase of a number of insurance policies designed to cover some $285 million in potential losses from a pool of single-family loans acquired in the second quarter of 2013 was its largest credit risk transaction to date. …

July 11, 2014 - Inside The GSEs

House Dem Trio Files ‘Middle Ground’ GSE Reform Legislation

A GSE reform bill filed late this week by a trio of House Democrats is less a last ditch effort to push their measure across the finish line this year than a bid to have the first word in next year’s debate over housing finance reform, note industry observers. The Partnership to Strengthen Homeownership Act, H.R. 5055, by Reps. John Delaney (MD), John Carney (DE), and Jim Himes (CT), follows through on their January draft proposal to seek a “middle ground” between the existing, politically untenable legislative proposals.

June 27, 2014 - Inside The GSEs

FHLBanks Place Moratorium on Captive Insurers Used by REITs

The presidents of all 12 Federal Home Loan Banks are in talks with the Federal Housing Finance Agency over a newly issued moratorium on nonbank mortgage firms – mostly mortgage real estate investment trusts – gaining access to the system’s borrowing window through a captive insurance affiliate. The 90-day moratorium was voluntarily put in place by the FHLB presidents on June 12, said a spokesman for the Council of Federal Home Loan Banks, a trade group of sorts for the 12 regional government-sponsored enterprises.

June 27, 2014 - Inside MBS & ABS

Secondary Mortgage Market Reps Urge CFPB To Make QM ‘Right to Cure’ Easier for Assignees

Secondary mortgage market participants generally support the Consumer Financial Protection Bureau’s proposed “right to cure” a mortgage that inadvertently breaches the qualified mortgage 3 percent points-and-fees cap – but they want to see it made more assignee-friendly. Earlier this year, the CFPB proposed allowing a limited cure for a points-and-fee violation if the creditor in good faith intended to originate the loan as a QM under the bureau’s ability-to-repay rule and the loan otherwise meets the requirements of a QM. A refund of the overage would have to be paid to the consumer and the party seeking to cure the violation (either creditor or assignee) would have to follow certain policies and procedures for post-consummation review of loans. In its comment letter to the CFPB, Fannie Mae suggested...

June 23, 2014 - Inside the CFPB

Fannie Mae, FHLB of Chicago Support QM ‘Right to Cure’

Fannie Mae and the Federal Home Loan Bank of Chicago were among the public commenters supporting – with some key revisions – the CFPB’s proposed “right to cure” a mortgage made in good faith that inadvertently exceeds the 3 percent points-and-fees cap under the bureau’s qualified mortgage standard. Earlier this year, the CFPB proposed allowing a cure for a points-and-fee violation if three criteria are satisfied, the first of which is if the creditor in good faith intended to originate the loan as a QM and the loan otherwise meets the requirements of a QM. Additionally, the creditor or the assignee has to refund to the consumer the dollar amount by which the loan's points and fees exceed the applicable limit and ...

June 20, 2014 - Inside Nonconforming Markets

Redwood to Source Jumbos Through FHLBanks

Redwood Trust could boost its jumbo acquisitions by $5.0 billion a year, according to industry analysts, due to a new partnership with the Federal Home Loan Bank of Chicago. The real estate investment trust announced last week that it has an exclusive three-year deal to purchase “high balance” mortgages from FHLBank members participating in a new product under the Mortgage Partnership Finance Program. Under the new MPF Direct, members of an ...

June 20, 2014 - Inside MBS & ABS

Redwood Partners with FHLBank MPF Program to Source Jumbos from Banks

Redwood Trust late last week struck a deal with the Federal Home Loan Bank of Chicago to purchase fixed-rate jumbo mortgages from FHLBank members participating in the Mortgage Partnership Finance Program. Redwood will be the sole investor in “high balance” mortgages from the new MPF Direct program for three years. The program is subject to final approval from the Federal Housing Finance Agency. Officials at Redwood said the real estate investment trust plans to start investing in MPF Direct loans during the second half of this year. The loan limit for the MPF Direct program is...

June 13, 2014 - Inside The GSEs

Redwood Inks Three-Year Jumbo Purchase Agreement with FHLBs

Redwood Trust late this week unveiled a three-year agreement with the Federal Home Loan Bank of Chicago whereby the real estate investment trust will purchase residential “high balance” loans from any member of the entire FHLBank system. The loans will be originated by members of the FHLBank system. Those lenders will then sell the mortgages to the Chicago FHLBank as part of the Mortgage Partnership Finance Program, which will then upstream the product to Redwood. The loans will have balances above the Fannie Mae/Freddie Mac loan limit of $625,500.

June 12, 2014 - Inside MBS & ABS

Judge Considers Dismissing DOJ’s Fraud Case vs. BofA As Settlement Negotiations Between Justice, Bank Stall

A North Carolina federal judge announced from the bench this week he is considering dismissing a Justice Department fraud case against Bank of America, citing a less than overwhelming preponderance of evidence. U.S. District Judge Max Cogburn said during a hearing that he is leaning toward shutting down the DOJ’s case as per the March recommendation of U.S. Magistrate Judge David Cayer, who found that the Justice Dept. has failed to prove the bank made “material” false statements to the Federal Housing Finance Board. “DOJ may not have...


Home-equity lending is beginning to show new life. My company (pick one):

Plans to enter this market over the next 12 months.
Is already making home equity loans and hopes to increase the offerings.
Is in the market but don’t expect much growth.
Is not making second liens and has no plans to do so.

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