Treasury

Browse articles from all of our Newsletters related to Treasury.

September 23, 2016 - Inside MBS & ABS

Judge Orders Government to Produce More Documents In GSE Shareholder Case, Shows Signs of Annoyance

In a potential legal coup for Fannie Mae and Freddie Mac shareholders, Federal Claims Court Judge Margaret Sweeney ordered the U.S. Treasury Department and Federal Housing Finance Agency to turn over another large batch of documents in relation to the Fairholme Funds Inc. v. United States, et al. net worth sweep case. Sweeney this week forced the government agencies to produce more documents, close to 60 this time, for the plaintiff’s attorneys. The agencies have attempted to keep the various memos, emails, presentations and other communications hidden under executive privilege. Shareholders say...


September 23, 2016 - Inside MBS & ABS

FHFA Has Settled Almost All of Its MBS Lawsuits With One Glaring Exception: RBS/Greenwich Capital

Five years have passed since the Federal Housing Finance Agency filed suit against 18 Wall Street firms and banks for peddling nonprime MBS to Fannie Mae and Freddie Mac in the years leading up to the housing crisis. All of the defendants have settled or lost with one glaring exception: Royal Bank of Scotland. As for when (and if) RBS will settle, that’s a different and complicated matter. The bank is presently owned by the British government, which took control of it during the financial crisis. In other words, any settlement might entail taxpayer money and cause a political controversy in the U.K. And the bill could be...


September 22, 2016 - Inside Mortgage Finance

Booming MBS Issuance and Uptick in Interest Rates May Mean Stellar 3Q Earnings for Fannie and Freddie

Thanks to booming originations the past few months – which should translate into higher guaranty fee income – Fannie Mae and Freddie Mac are likely to post their strongest profits of the year in the third quarter, according to interviews conducted by Inside Mortgage Finance this week. But it’s not just higher loan production that should allow profits to soar – it’s the fact that the yield on the 10-year Treasury now stands at 1.69 percent, 21 basis points higher than June 30. The 10-year rate is...


September 16, 2016 - Inside The GSEs

Judge Rules to Dismiss GSE Shareholder Case in KY

A GSE investor in Kentucky lost her case last week when the court dismissed claims that the government damaged Fannie Mae and Freddie Mac by implementing the net worth sweep of the GSEs’ profits. Arnetia Robinson alleged that her investments in Fannie and Freddie were “materially damaged” when the Federal Housing Finance Agency and the Treasury Department amended the existing preferred stock purchase agreement in 2012. According to court records, Robinson was seeking declaratory and injunctive relief that would prevent enforcement of portions of the PSPA. She contended that the sweep violates the Housing and Economic Recovery Act and said the Treasury acted “arbitrarily and capriciously.”


September 16, 2016 - Inside MBS & ABS

Judges in Kentucky and Virginia Dismiss Two Separate GSE Shareholder Cases

Individual investors in Fannie Mae and Freddie Mac stock lost separate legal battles to inspect the corporate records of Freddie and prove that the Treasury sweep of the government-sponsored enterprises’ profits is damaging and unjust. In the case of Arnetia Joyce Robinson v. The Federal Housing Finance Agency, et al., the shareholder plaintiff argued that her investments were materially damaged when FHFA and the Treasury Department implemented the net worth sweep back in 2012. Robinson argued...


September 16, 2016 - Inside MBS & ABS

Daily MBS Trading Volume Weakens in August. Is The Huge Bond Price Correction Finally Upon Us?

The average daily trading volume in agency MBS fell to $195.0 billion in August, the second weakest reading of the year, according to figures compiled by the Securities Industry and Financial Markets Association. The peak came the month before at $219.3 billion, and the low was back in March at $189.4 billion, not too far from the August volume. It’s...


August 26, 2016 - Inside FHA/VA Lending

FCC Issues TCPA ‘Exemption’ Rule, Lawyers Baffled by Rule’s Language

The Federal Communications Commission has issued a baffling final rule restricting the way servicers can collect on or service student loans, mortgages and other debts owed to the federal government. Specifically, the rule implements a key provision in the Bipartisan Budget Act of 2015 amending the Telephone Consumer Protection Act to exclude robocalls from the TCPA consent requirement if they are made solely to collect a debt owed to or guaranteed by the federal government. The TCPA generally requires a caller to obtain “prior express consent” from the call recipient before making a telemarketing call or an auto-dial call to the recipient’s landline or cell phone. However, the mortgage industry raised concerns that TCPA’s consent requirement could create potential liability for important servicing calls that could help homeowners save their homes, which prompted Congress to pass the Budget Act amendment. Last month, the FCC specifically excluded the federal government from the TCPA’s consumer protections by ruling that the government is not a “person” subject to the TCPA. Here is where the FCC rule gets confusing. commission is authorized to adopt rules to “restrict or limit the number and duration” of any wireless calls to collect debt owed to the federal government.”


August 25, 2016 - Inside Mortgage Finance

FCC Declines to Exclude Servicer Calls to Delinquent Borrowers from TCPA’s ‘Prior Consent’ Requirement

The Federal Communications Commission has refused an industry request to exempt mortgage servicing calls from prohibitions against the use of “robocalls,” or automated dialing and calling systems, to contact delinquent borrowers on their cell phones. In a long-awaited final rule limiting the way servicers can collect on student loans, mortgages and other debts owed to the federal government, the FCC said it would not make a decision on whether the statutory exemption from the Telephone Consumer Protection Act’s “prior express consent” requirements applies to Fannie Mae and Freddie Mac loans or their servicers. The TCPA and FCC regulations require...


August 12, 2016 - Inside MBS & ABS

Latest Batch of Documents Unsealed in GSE Shareholder Case Focuses on Treasury’s Control Over Fannie, Freddie

A federal judge rejected efforts by the government to keep a new batch of official memos and other documents from being disclosed in the ongoing legal war over the terms of the conservatorships of Fannie Mae and Freddie Mac. U.S. Court of Federal Claims Judge Margaret Sweeney released a new set of documents that included a brief excerpt of former White House housing policy expert Jim Parrott’s deposition from January, a presentation from the Federal Housing Finance Agency in 2008 and several memos dating back to 2008 and 2012. Sweeney rejected...


Poll

After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

vote to see results
Housing Pulse