Cowen: “We continue to believe the Senate Banking Committee must release a legislative plan in 2017 for Fannie and Freddie if it is to be enacted in the 115th Congress.”
MBA chief Dave Stevens: “What happens if the president nominates a new [FHFA] director who thinks the government role in mortgage finance is too large and wants to scale it back?"
A little over two years ago, nonbank mortgage giant loanDepot unveiled a second-lien lending program, paving the way for some of its peers to enter the space. But so far, few have stuck their toe in the water. Moreover, it doesn’t seem as though loanDepot is exactly lighting the world on fire with the product, but that could change in the quarters ahead, especially if rates rise and consumers opt to tap equity by taking out a second. loanDepot declined to talk about its program and ...
Preferred Language Question Added to the URLA. The Federal Housing Finance Agency announced on Oct. 20 that it decided to add a preferred language question to the redesigned URLA. The regulator noted that the question will enable borrowers who prefer to communicate in a language other than English to identify that language. They said that it also provides clear disclosures that the mortgage transaction is likely to be conducted in English and that language resources may not be available. FHFA Director Mel Watt said following stakeholder outreach and input the agency has taken steps to mitigate concerns about the inclusion of a language preference question. Fannie Exec Withdrew Treasury Job Consideration. Brian Brooks, Fannie’s general counsel, decided to opt out of being...
Freddie Mac announced a new credit-risk transfer program this week that expands on the GSE’s popular Structured Agency Credit Risk offering and is more conducive to a variety of investor types, including real estate investment trusts. The $50 million STACR- Securitized Participation Interests transaction is unique in that it is backed by mortgage loans. “STACR SPI is another offering in our CRT toolbox to help shift risk away from taxpayers and give more options to investors who prefer a securitization backed by mortgage-related assets,” said Mike Reynolds, vice president of credit risk transfer.
Freddie Mac and Fannie Mae will have a new evaluation process for determining whether a borrower is eligible for a conventional mortgage loan modification as of July 1, 2018. The GSEs noted that the new imminent default evaluation process was designed to simplify the process for servicers and borrowers to better identify those who need assistance. This new evaluation process was developed at the direction of the Federal Housing Finance Agency and it will replace the current Imminent Default Indicator test introduced by Freddie in 2010. In order for a borrower’s monthly payment to be considered in imminent default for eligibility...
The FHA could be in position to become a much bigger rival to Fannie Mae and Freddie Mac, according to one analyst, basing his observation on U.S. Department of Housing and Urban Development Secretary Ben Carson’s comments late last week. Jaret Seiberg, analyst with the Cowen Washington Research Group, said implications Carson made in regards to the False Claims Act and premium cuts led him to believe that the FHA may give the GSEs a run for their money competition wise. During his testimony before the House Financial Services Committee, Carson said that the Trump administration is working to change the False Claims Act policy...
Since the Federal Housing Finance Agency Office of the Inspector General was launched in 2013, the OIG said it has made more than 375 recommendations to the FHFA to improve efficiency and reduce fraud. To keep track of its long-running list of recommendations, including those that are currently opened and those that were rejected and not implemented by the agency, the OIG published a compendium of recommendations that covers up to Oct. 1, 2017. “OIG typically relies on materials and representations from the agency to close its recommendations and may close some recommendations based on the agency’s representations as to the corrective actions it has...
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