Republicans on Capitol Hill this past week expressed dismay with Fannie Mae and Freddie Mac recently transferring $180 million into federal affordable housing programs. In fact, 10-K filings by the two government-sponsored enterprises indicate Fannie has paid $217 million, and Freddie has turned over $165 million for a total of $382 million. By law, both GSEs are required...

When the two GSEs were losing money earlier in the decade, then-Acting FHFA Director Edward DeMarco suspended the contributions before any had ever been made.

DeMarco, by the way, called on Congress to take a “thoughtful” review of the FHA program and Ginnie Mae’s role in housing finance.

There is, however, a 0 to 6 percent fee...

Increases in demand on the FHA single-family program are having collateral implications for the integrity of Ginnie Mae’s MBS programs, including the potential for more fraud, warned the Department of Housing and Urban Development inspector general. Testifying during a recent Senate budget hearing, HUD Inspector General David Montoya said Ginnie issuer defaults historically have been infrequent, involving small to moderate-size issuers. “However, major unanticipated issuer defaults beginning in 2009 have led...

The development of the “deal agent” concept and the recommendations to standardize documentation are crucial to the revival of the non-agency MBS market, according to the Urban Institute. However, more work needs to be done to refine and implement the principles underlying the deal-agent concept and document standardization, said Laurie Goodman, director of the Housing Finance Policy Center at UI, in a new report. Many investors remain...

Issuers of publicly-registered ABS are adjusting to so-called Regulation AB2 requirements established by the Securities and Exchange Commission, but observers say the pro-investor rules have increased issuer costs and slowed issuance. One of the biggest challenges for issuers from Reg AB2 has been the requirement for an asset-representations reviewer. The rule requires publicly-registered MBS and ABS to include an asset-representation reviewer whose work can be triggered by a certain level of delinquent assets in a pool or by an investor vote. Susan Thomas, the associate general counsel of Ford Motor Credit Company, said...

The Federal Reserve’s Open Market Committee decided this week, as expected, to delay its next rate increase, citing concerns about global economic and financial developments, leaving the federal funds target range at 0.25 percent to 0.50 percent until June at the earliest, according to a consensus of market participants and observers. “Our decision to keep this accommodative policy stance reflects both our assessment of the economic outlook and the risks associated with that outlook,” said Fed chair Janet Yellen after the committee’s two-day meeting concluded Wednesday afternoon. Looking ahead, then, with appropriate monetary policy, the FOMC continues...

Social Finance, the fledgling “marketplace” lender, is funding enough home mortgages on a monthly basis that it’s now scouting for opportunities in the secondary market, according to lending officials who have met with the firm’s management team. Among the options being considered is raising money to form a real estate investment trust, a vehicle that would provide a balance sheet where whole loans could reside. However, it’s unclear at this point if Social Finance, or “SoFi” as it is known, has any plans for securitizing residential product. Company officials including Michael Tannenbaum, who serves as vice president of mortgages for the startup, and William Jarve, in the firm’s capital markets group, declined...

The Federal Housing Finance Agency this week filed a request to transfer lawsuits brought by Fannie Mae and Freddie Mac shareholders in four district courts to the U.S. District Court in Washington. The government-sponsored enterprise regulator hopes to ward off future “copycat” cases and those where plaintiffs may be encouraged to “shop” for the best forum, based on the ruling. FHFA said it is certain that the number of pending complaints challenging the quarterly U.S. Treasury sweep of Fannie and Freddie net income will continue to grow. As a result, the agency said the transfer would be more efficient and benefit the parties and courts. “The claims and relief sought in each of the four related cases are...