What does it take for a community bank to be considered for an award for innovation? It would seem a lot in the case of Seattle-based HomeStreet Bank. Perhaps, it may also be due to the fact that HomeStreet Bank has gone from “troubled institution” to “well-capitalized institution” in four years. In fact, in March last year, the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions terminated a 2009 cease-and-desist order for the bank and ...

The latest credit scoring model from VantageScore Solutions includes credit scores for up to 30 million consumers who haven’t been scored by other providers, according to the company. In an attempt to ease adoption of the score among lenders, the company also changed its scoring range to conform with the range of scores offered by FICO. Sarah Davies, a senior vice president of analytics and product management at the company, said VantageScore 3.0 can score 15 million more potential borrowers than ...

Several members that recently bolted from the American Securitization Forum are forming a new trade group.

On Tuesday the Senate Banking Committee will hold a vote on the nomination of Richard Cordray to head the CFPB. Does this mean the GOP is warming up to him or is something else afoot?

Improving loan quality is sparking a major shake-out in the due diligence sector. Can jumbo production and MBS save the day? Meanwhile, the supply of MBS expanded slightly in the fourth quarter.

Although it expects to report “significant net income” for both the final three months and the full year 2012, Fannie Mae announced late this week that it will delay its earnings release while the GSE’s accountants continue to crunch numbers to determine if the company should take a lucrative but complex tax deduction. In a form 12b-25 filing with the Securities and Exchange Commission, Fannie requested a filing extension beyond its March 18 deadline because it needs more time to analyze its deferred tax assets, which are unused credits and deductions that can be used to cover future tax bills.“The release of the valuation allowance would have a material impact on the company’s 2012 financial statements and result in a significant dividend payment to the U.S. Treasury,” noted Fannie in its SEC filing.

Legislation introduced this week by a bipartisan group of senators would seek to “jumpstart” the stalled effort in Congress to implement legislative reform of Fannie Mae and Freddie Mac, but industry observers say the measure may also act to hinder cash grabs by government officials when the Treasury Department begins its “sweep” of the GSEs’ profits. The Jumpstart GSE Reform Act – sponsored by Sen. Bob Corker, R-TN, with co-sponsors Sens. Mark Warner, D-VA, David Vitter, R-LA, and Elizabeth Warren, D-MA – would prohibit any increase in Fannie’s and Freddie’s guaranty fee from offsetting other government spending. “The reality is that if Congress were to spend g-fee revenue from the GSEs on other programs, reforming these mortgage behemoths would become nearly impossible,” said Corker.

House Republicans’ proposed budget for next year would see Fannie Mae and Freddie Mac wound down as part of an effort to “end corporate welfare” in the housing sector. The GOP’s 91-page “Path to Prosperity” proposal for Fiscal Year 2014 gives scant mention to the two GSEs – less than two full paragraphs. House Budget Committee Chairman Paul Ryan, R-WI, the proposal’s author, seeks to “drastically decrease” Fannie’s and Freddie’s market dominance by gradually ending their government guarantees and taxpayer subsidies.

Outside vendors to Fannie Mae and Freddie Mac are enjoying the “salad” days of contracting – with promises of more work to come now that the GSEs are actively aiding in the creation of a separate but “outside” single platform to issue mortgage-backed securities. According to a recent Securities and Exchange Commission 10-K filing issued by Freddie Mac, the GSE spent $361 million on “professional services” last year, which is jargon for contract workers and outsourced…

The Treasury Department is on board with a risk-sharing mandate from the Federal Housing Finance Agency that sets a $30 billion goal this year for Fannie Mae and Freddie Mac. That’s the word from FHFA officials who discussed the matter with Inside The GSEs, but who did not want to be identified by name. “Treasury has taken a great interest in these things,” said one FHFA official. “They’re not ignoring what we’re doing.” The Treasury Department did not return telephone calls about the matter.