On the heels of a final ruling this week where a federal judge said the government went too far in its takeover of American International Group as part of its 2008 bailout, some are comparing the lawsuit to the one bought by Fannie Mae and Freddie Mac shareholders. In this ruling, the federal judge decided not to award damages to AIG shareholders, even as it said the government was wrong in taking a 79.9 percent stake in the company in exchange for an $85 billion loan that helped keep the company on firm ground during the downturn. Judge Thomas Wheeler believed shareholders did not need to be compensated because AIG...
Credit quality has improved over the last two years, according to Chris Mock, vice president of single-family quality control for Freddie Mac, but there is still plenty of room for improvement. These days he said the top three common defects are missing documentation, insufficient funds to close, and insufficient income. “The first one is we are unable to calculate income and match it to the income the lender calculated on the loan file,” he said in an interview with Inside The GSEs. “And that one is mainly driven by documentation that is missing when the customer sends us a file.” Mock said that Freddie shares a list of the top 10 missing documents with lenders...
Bank Acquitted in Charges of Selling Fannie Bad Mortgages. Abacus Federal Savings Bank was acquitted of grand larceny and conspiracy charges earlier this month from a case bought by the New York District Attorney’s office that involved Fannie Mae. Following a four-month trial, a New York jury acquitted Abacus and two of its senior offices. The Manhattan-based bank, which primarily serves Chinese-Americans in the New York area, was accused of falsifying documents and selling faulty mortgages to Fannie from 2005 to 2010. Freddie Says Look Out for IRS Rejection Messages. To ensure the quality of loans sold to Freddie, the GSE says sellers and servicers must take all appropriate steps to clear red flags typically found in fraud schemes focused...
A relatively small – even microscopic – percentage of loans securitized by Fannie Mae and Freddie Mac in the past three years have been subject to a repurchase demand, according to a new Inside Mortgage Trends analysis. As of the end of March, lenders had repurchased a total of $2.01 billion of loans that were pooled into mortgage-backed securities by the two government-sponsored enterprises during 2012, 2013 and 2014. That was just ... [Includes two data charts]
If you are advertising or marketing mortgage products in Spanish, compliance experts suggest you should provide all requisite disclosures and servicing in Spanish.
The non-cash share of financing for home purchases increased to 75.2 percent in May, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Acquiescing to Fannie Mae and Freddie Mac repurchase and make-whole demands, the big bank aggregators were more concerned about preserving their business relationship with the government-sponsored enterprises than questioning GSEs’ claims, according to compliance experts. “Indeed, it is often plainly apparent the aggregators have done nothing at all to investigate or research, much less defend against, the demands made on them by ...
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