The Federal Home Loan Bank system earned $825 million in the first quarter of 2016, down from the $1.015 billion earned in the first quarter of 2015, according to figures compiled by the system’s Office of Finance. Lower gains on litigation settlements and higher losses on derivatives and hedging activities for the three months ending on March 31 contributed to the 19 percent decrease, according to the OF. Litigation settlements accounted for $348 million in income in the first quarter compared to $480 million a year earlier. The 1Q16 income was from the FHLBank of San Francisco’s $211 million settlement and the FHLBank of Des Moines’ $137 million settlement of claims arising from investment in non-agency mortgage-backed securities.
Although the GSEs are reviewing loans to make sure the new TRID forms are being used, not for technical compliance, Fannie Mae’s survey of lenders on the impact of TRID showed vendor coordination and communication with key players have been the biggest challenges.More than three quarters of the lenders surveyed cited challenges when it comes to managing and coordinating third-party technology vendors and communication with buyers, sellers and loan officers. In addition, smaller lenders said they feel more burdened since the rule took effect in October. Fannie said many small- to-midsized lenders indicated that they don’t have the same resources as larger institutions which can easily invest in upgrading systems and have in-house compliance resources to...
Freddie Announces Second NPL Transaction of 2016. Freddie Mac announced a $135 million non-performing loan transaction this week. The NPLs are currently serviced by JP Morgan Chase Bank. Bids are due from qualified bidders on May 25, 2016. The sale is expected to settle in the third quarter of 2016 and the NPLs are offered as one pool. The winning bidder will be determined based on economics, subject to meeting Freddie’s internal reserve levels. Fannie Names Winners of Latest NPL Sale. Fannie Mae’s winning bidder of all four pools in its fifth non-performing loan sale is Goldman Sachs. The sale included approximately 7,900 loans totaling $1.48 billion in unpaid principal balance. The transaction is expected to close June 27, 2016.
Mortgage officials tracking the case note that almost a year ago Quicken raised $1.25 billion through a debt sale, money that can be employed for legal help as it fights the DOJ case.
In general, private mortgages are extended by the owner of the property to a borrower through a private contract. Terms can vary greatly from deal to deal.
Perhaps, the time is drawing near to once again raise the thorny issue of whether the Department of Housing and Urban Development should cut FHA premiums...
New primary mortgage-insurance activity was down slightly during the first quarter of 2016, with private MIs seeing the biggest slump in new business, according to a new analysis and ranking by Inside Mortgage Finance. A total of $144.11 billion of home loans were originated with some form of MI coverage during the first three months of this year, a 3.7 percent decline from the fourth quarter of 2015… [Includes four charts]
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