The Federal Housing Finance Agency issued a final rule last week to make the process a bit clearer when it comes to ending relationships with fraudulent businesses and individuals. The Suspended Counterparty Program final rule has been in the making for a few years and parts of the interim rule, published in October 2013, have been revised. The final rule, which goes into effect Jan. 22, addresses comments made by Fannie Mae and 11 Federal Home Loan Banks. The program was put in place to help mitigate risk to Fannie, Freddie Mac and the FHLBs. One of the changes made in the final rule is that it allows more time for Fannie and Freddie to...
Members of the single-security and common securitization platform industry advisory group met last month for the second time and are considering more frequent meetings and subcommittees. The group also confirmed that the implementation date of the single security won’t occur at the beginning or end of a quarter and said the industry will have a 12- to 15-month advance notice prior to implementation. The group, created in preparation for the launch of the common securitization platform and single security, met at Fannie Mae’s headquarters to discuss a wide range of concerns raised by members and industry stakeholders, according to notes summarizing the meeting.
Fannie Mae has changed the guidelines for loans with age-related resale restrictions in response to lenders’ requests about second homes and investment properties in these communities. Currently, Fannie limits occupancy on a loan with resale restrictions to a borrower’s one- and two-unit principal residence, but it has now expanded the eligibility to permit all occupancy types. The GSE said this will allow borrowers to purchase a property for the benefit of older family members or for future use. It said the criteria of the deed restriction must continue to be met and those requirements typically apply to the unit occupant and often requires just one resident to be 55 or older.
In late December, The Washington Post and Wall Street Journal took aim at the GSEs in their editorial sections, just 10 days apart. The Post’s editorial board noted that mixing politics and money makes for “unholy alliances,” referred to a push by both Wall Street hedge funds and low-income housing advocates to recapitalize and release Fannie Mae and Freddie Mac from conservatorship. “These unlikely allies want to end government control of the two entities and put shareholders back in charge, as if their collapse and federal bailout in 2008 never happened,” stated the editorial. Investors Unite, a shareholders trade group, put out statements this week saying that both editorials were riddled with flawed facts and assumptions. “It was obvious...
Freddie Announces New Alliance with Lenders One. Freddie Mac has teamed up with Lenders One Mortgage Cooperative, based in St. Louis, to give Lenders One members who are Freddie seller/servicers pricing and execution benefits, enhanced access to mortgage products, and professional training and development opportunities. Freddie did not provide additional details on specific pricing benefits .Chris Boyle, senior vice president of single-family sales and relationship management at Freddie, said Freddie Mac is pleased to “help its members reach more eligible borrowers, achieve new efficiencies in the origination process and build strong, competitive businesses.” In related news, Lenders One is still...
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