With confidence in economic recovery continuing to waver across the country, there’s been a revival of speculation about what the Obama administration’s next move will be in the housing market, given the industry’s substantial role in the economy and the upcoming presidential election. This week the Washington Post reported that the president called for a team of advisers to create a housing finance reform proposal that would allow the government to maintain its large role in the market and extend a federal loan subsidy for many borrowers. However, Neal Wolin, deputy secretary of the Treasury, was quick to ...

The tough economic and market environment that continues to pound many lenders is also creating opportunities for others, with PennyMac, Carrington and Ocwen among the most noteworthy ready to take advantage of a strong position in the marketplace. PennyMac Mortgage Investment Trust, the real estate investment trust (REIT) run by Stanford Kurland, the former president of Countrywide Financial Corp., plans to triple its mortgage lending through an expansion of its ...

Allowing investors to purchase distressed properties in bulk will help ease the bloated housing inventory, stabilize home prices, increase affordable housing and reinvigorate the sagging housing market, according to a recent Morgan Stanley report. Bulk sales, along with lease-back programs and other incentives, can help avert a growing crisis in housing triggered by the worst financial collapse since the Great Depression, concluded Morgan Stanley’s housing analysts. Strict underwriting has tightened mortgage credit, making home purchases more ...

The consensus among mortgage market watchers is that the downgrade earlier this month of the GSEs by Standard & Poor’s will have no immediate, detrimental impact even as Fitch Ratings this week said it is keeping Fannie Mae and Freddie Mac’s “AAA” rating.Fitch this week also said its outlook for Fannie and Freddie’s ratings remained “stable.” The move was in concert with Fitch’s decision to keep its rating on U.S. debt at the highest grade.“A key element of the explicit support is the guarantee by the U.S. Treasury to inject funds into Fannie Mae and Freddie Mac, so that each firm can avoid being considered technically insolvent by their regulator,” said the rating agency.

The Federal Home Loan Banks are moving forward with plans that would permit the Banks to bolster their capital following confirmation earlier this month that the FHLBanks have officially paid off their interest debt on Resolution Funding Corporation bonds.The Federal Housing Finance Agency formally announced on Aug. 5 that the 12 FHLBanks completed their REFCORP obligations with their July 15, 2011 payment. The Finance Agency subsequently approved amended plans for the Banks.

The Vice-Chairman of the House Financial Services Committee, and an outspoken GSE critic, is among the Capitol Hill lawmakers named to be one of the 12 “super committee” House and Senate members tasked with tackling debt reduction.

Fannie Mae, Freddie Mac and three federal agencies are cranking up existing efforts to dispose of the GSEs’ ample real estate owned inventory of homes into overdrive by seeking investors’ ideas for converting thousands of REO properties into rentals.Last week, the Federal Housing Finance Agency, the Treasury Department and the Department of Housing and Urban Development put out a “request for information” on how best to sell GSE and FHA-owned REO properties.

Fannie Mae and Freddie Mac lost less in the second quarter of 2011 than during the previous three month period and less than one year ago, but the two GSEs continue to struggle with a huge run of losses well into the fifth year with no end in sight.

Fannie Mae last week reminded its servicers of their responsibilities “for performing all property maintenance functions” throughout the foreclosure process “to ensure that the condition and appearance of the property are maintained satisfactorily.”