A new Inside Mortgage Finance analysis of agency mortgage-backed securities data shows that mortgage production fell sharply in virtually all states during the first quarter. The top three states – California, Texas and Florida – fared somewhat better than the overall market. Fannie Mae, Freddie Mac and Ginnie Mae securitized some $34.9 billion of California single-family mortgages during the first quarter of 2014, down 25.4 percent from the fourth quarter. But the overall agency MBS market fell 27.2 percent over that period. Texas, down 41.4 percent from the first quarter of 2013, and Florida (off 48.7 percent) both had...[Includes one data chart]

Consumer Financial Protection Bureau examiners have reportedly become suspicious of certain mortgage banking executives’ participation in the exam process and escalated their interaction by pressing them to provide their input under oath. Officials at the consulting firm of Garrett, McAuley & Co. reported a disturbing development at a mortgage company in a Mid-Atlantic state undergoing a CFPB exam. “The examiner-in-charge apparently thought that the owner was lying, and the CFPB now wants to question him under oath,” principal Joe Garrett said in a recent note to clients. “Under oath? Whether or not they can prove...

Since late last year, the FHFA has required that any Fannie Mae/Freddie Mac MSR sale of $5 billion or more – roughly 5,000 loans – be approved by the agency.

Under the original conservatorship agreement, the GSEs are allowed to maintain a small capital buffer, but within three years that buffer will be reduced to zero.

MBA believes the imposition of compensatory fees has morphed into a risk-sharing mechanism that shifts the costs of the prolonged foreclosure process from the GSEs onto mortgage servicers.

Sen. Heidi Heitkamp, D-ND, a co-sponsor of the Johnson-Crapo bill, also said the measure is moving forward. “This train is leaving the station,” she said. But whether it makes it to the floor of the Senate is another matter.

As far as pricing goes, if g-fees are raised Fannie and Freddie could earn more money – cash that ultimately would wind up at the Treasury Department, which sweeps most of their earnings each quarter.

A new trade group is showing true love for Fannie Mae and Freddie Mac. Also, the Consumer Financial Protection Bureau is giving lenders some breathing room on the Qualified Mortgage/Ability-to-Repay rule.

One of the boldest underwriting moves was taken by TD Bank, which recently announced a portfolio loan that has a downpayment requirement as low as 3 percent.

Reverse mortgages guaranteed by the government are due and payable upon the death of the homeowner, the sale of the home, and other conditions, including the failure to reside in the property or pay the taxes and insurance.