Modified Freddie Mac mortgages performed somewhat better than Fannie Mae loans for up to two years after modification as the performance gap between the two GSEs closed slowly, according to the Office of the Comptroller of the Currency. The OCC’s latest Mortgage Metrics Report noted that Freddie loans had a 15.6 percent re-default rate six months after modification, while Fannie mods saw a 16.3 percent rate. At the 12-month mark, Freddie stood at 22.3 percent compared to Fannie’s 23.4 percent.

HSBC failed to implement and maintain required quality controls and failed to oversee the foreclosure-related charges it submitted to the FHA and Fannie Mae, resulting in unspecified millions of dollars in taxpayer losses, according to federal investigators. Under the terms of the civil settlement announced last week by the Manhattan U.S. Attorney’s office and the Federal Housing Finance Agency’s Inspector General, HSBC will pay $10 million to settle charges that in 2009 and 2010 it failed to properly supervise foreclosure-related fees by outside lawyers and other service providers to the FHA and Fannie.

The Federal Housing Finance Agency remains committed under new management to deploy regulatory countermeasures against municipalities that move forward with proposed efforts to seize underwater mortgages via local eminent domain powers, agency officials say. After a quiet period when it appeared this issue was going away, eminent domain initiatives are cropping up again, including a recent push by a member of the San Francisco Board of Supervisors to get the city to partner with Richmond, CA.

Senate Confirms New HUD Secretary, FHFA IG Nominee on Hold. The Senate this week voted 71-26 to approve San Antonio Mayor Julian Castro’s nomination to be secretary of the Department of Housing and Urban Development. During his confirmation hearing last month before the Senate Banking, Housing and Urban Affairs Committee, Castro told Senators he thinks taxpayers should have more protection than they have now under the current GSE structure, though he did not back a specific legislative proposal. As HUD secretary, Castro is one of four members of the Federal Housing Finance Agency’s Oversight Board.

The rebound in new business at Fannie Mae and Freddie Mac during the second quarter of 2014 was fueled by a hefty increase in purchase-mortgage activity, but it also featured clear shifts in the volume of loans coming from different kinds of lenders. A new Inside Mortgage Trends analysis of loan-level data on mortgage-backed securities issued by the two government-sponsored enterprises shows that nonbank lenders continued to ... [Includes 3 data charts]

By now, the word is out: the Federal Housing Finance Agency is exploring codifying capital minimums for nonbank servicers as a way to help Fannie Mae and Freddie Mac better manage counterparty risk. Industry officials tracking the topic told Inside Mortgage Trends they don’t believe the FHFA is necessarily worried about the capital positions of the big three nonbanks: Nationstar Mortgage, Ocwen Financial, and Walter Investment Management ...

Walter Investment Management took steps last week to transition to a business model that requires less capital by funding Walter Capital Opportunity and completing an excess servicing spread sale with WCO. WCO is a real estate investment trust that Walter formed in November to hold mortgage servicing rights. Last week, WCO acquired 70 percent of the excess servicing spread from a pool of loans serviced by Green Tree Servicing ...

The decline in refinance activity in the past year has prompted a closer look at differences in interest rates as lenders compete for borrowers. Lenders that don’t offer the lowest rate suggest that there’s more to the mortgage decision than just a low interest rate, particularly because rates are at historic lows. LendingTree, a firm that allows potential borrowers to compare loan offers, recently launched an ongoing study to track the difference between ...

The next gold rush in the mortgage industry may be home loans that fall outside the legal safe harbor for qualified mortgages under new rules that took effect in January. And like any bonanza, it’s hard to tell how big the mother lode is. According to Deutsche Bank Securities, it could be a staggering $600 billion a year, but that estimate comes with a lot of caveats. For starters, Deutsche Bank estimated that about $52 billion of 2013 mortgage originations were ...

Mortgage professionals continue to face a tough job market, but they can still find gainful employment depending on what their position is. No one is completely secure in the current economic environment, although mortgage brokers and loan officers may have the best standing. “Demand for key talent has suddenly spiked,” said Rick Glass, a principal in R.T. Glass & Associates of California, a mortgage recruiting firm. Mortgage brokerage firms added ...