Residential lenders that are relatively new to the seller/servicer ranks of Fannie Mae continue to gripe about the purchase limits the GSE has placed on them, causing the agency to spell out its reasoning in an online commentary. According to a recent message posted to Fannie’s website by Executive Vice President and Chief Risk Officer John Nichols, the caps the GSE placed on new customers – nonbanks primarily – were caused by what the company calls a “significant shift in the composition of our customer base and the emergence of many new originating institutions with whom we have done little or no business.” He adds: “This rapid change in the marketplace prompted...

A number of mortgage industry experts share the view that a dark cloud has been cast over President Obama’s recess appointment of Richard Cordray as director of the Consumer Financial Protection Bureau, after an appeals court ruled late last week that other recess appointments the president made at the same time were unconstitutional. “The significance of this decision cannot be overstated as it raises a host of questions about the potential impact of a judicial ruling that Mr. Cordray’s recess appointment was similarly invalid,” said Barbara Mishkin, of counsel with the law firm of Ballard Spahr. Edward Mills, a financial policy analyst at FBR Capital Markets, said...

The agency share of mortgage originations is expected to remain elevated for years to come due to profits at the government-sponsored enterprises, increasing home prices, a lack of non-agency production, and the new ability-to-repay rule, according to industry participants. The factors have combined to reduce the push for the Obama administration and Congress to take action on GSE reform. The most recent impediment to GSE reform appears to be new profits reported by Fannie Mae and Freddie Mac, along with expected profitable quarters going forward due to repurchase settlements, home price appreciation and other positive trends. “The Treasury Department has...

Mortgage lenders seeking new agency approvals from Fannie Mae, Freddie Mac and Ginnie Mae have to take a number and wait. And sometimes that wait can last for a year or more, even longer depending on which “agency” a company is dealing with. But all that appears to be changing, according to interviews conducted by Inside Mortgage Finance over the past two weeks. Unfortunately, there’s little in the way of hard numbers to back that up, except for Ginnie Mae. According to an agency spokesman, Ginnie approved...

The Department of Housing and Urban Development this week announced the latest changes designed to bolster the solvency of the FHA and ease Congress’ fear of a potential taxpayer bailout. The announcement is in connection with additional reforms, which FHA Commissioner Carol Galante committed to in an agreement with Sen. Bob Corker, R-TN. In a deal that cleared the way to her confirmation as FHA chief, Galante promised to have the measures in place by the end of the month to better manage risk and strengthen the FHA Mutual Mortgage Insurance Fund. As expected, HUD is...

Underwater homeowners who have remained current on their payments and who can demonstrate a “hardship” may be eligible to relinquish their homes, cancel their mortgage debt and avoid the messy foreclosure process under the terms of a Fannie Mae and Freddie Mac policy change to take effect in March. The two government-sponsored enterprises will broaden the authority of their servicers to approve a deed-in-lieu of foreclosure to non-delinquent Fannie or Freddie borrowers who can no longer afford to stay in the home. Effective March 1, the new deed-in-lieu option is...

Fannie Mae and Freddie Mac in 2012 combined for the third biggest year ever in single-family mortgage-backed securities issuance, according to a new Inside Mortgage Finance market analysis and ranking.

Norton Wells, senior vice president of Bank of America’s mortgage resolution team, has left the company, industry officials confirmed to Inside Mortgage Finance.

The Consumer Financial Protection Bureau has a field hearing scheduled for January 17 in Atlanta, and industry sources fully anticipate that the bureau will release its final mortgage servicing rule the night before.

FHA reported $21 billion of new residential endorsements in November, down from the previous month but up substantially from the same period a year ago. Fixed-rate mortgages accounted for 80 pecent of the total. For details see the new edition of Inside FHA Lending.