Debt issuance for Fannie Mae, Freddie Mac and the Federal Home Loan Banks rose during the second quarter of 2011, while Freddie recorded a decline in new debt during the April to June period.The GSEs collectively issued $726.2 billion in new debt during the second quarter, a 2.6 percent increase from the previous quarter, while GSE debt outstanding at $2.168 trillion declined 4.8 percent from the first quarter.

The government will subsidize Fannie Mae and Freddie Mac new business to the tune of about $51.0 billion over the next 10 years, according to the latest projections from the Congressional Budget Office.CBO’s most recent budget and economic outlook, released in late August, increased its estimate of the subsidy cost for the two GSEs during the period between 2012 to 2021 from the approximate $41.6 billion that the CBO forecast in June.

Several of the prudential management and operations standards recently proposed by the Federal Housing Finance Agency are “duplicative of, or conflict with, current regulatory requirements” and should be further refined before final issuance, according to a comment letter written by the 12 Federal Home Loan Banks.The FHLBanks suggest numerous and significant revisions or clarifications to the proposed rule the FHFA issued in June.

The Obama administration is expected to roll out a more aggressive agency refinance program soon as part of a new economic stimulus package with Wall Street analysts predicting the plan will likely focus on pricing changes at Fannie Mae and Freddie Mac or an expansion of the Home Affordable Refinance Program.A recent report by Amherst Securities Group notes that a massive government refinance program “is unlikely, as it could not be implemented without subjecting the GSEs (and implicitly the taxpayer) to an increased level of risk.”

In a not unexpected development, PMI Mortgage Insurance has become the second mortgage insurer in less than a month to be suspended by Fannie Mae and Freddie Mac as an approved GSE mortgage insurer after the company announced state regulators placed PMI under a supervisory order.Mortgages insured by PMI Mortgage Insurance or its affiliates PMI Mortgage Insurance Co. (MIC) and PMI Insurance Co. (PIC) with notes before May 19, 2011, or after Sept. 16, 2011, will no longer be purchased or securitized by Fannie or Freddie, the GSEs announced separately last week.

The junior senator from California is making another public push to overhaul GSE refinance rules — this time by calling on the Federal Housing Finance Agency to immediately implement parts of her bill that would allow underwater borrowers to refi with Fannie Mae and Freddie Mac into a lower-rate loan.Last week, Sen. Barbara Boxer, D-CA, sent FHFA Acting Director Edward DeMarco a letter urging the Finance Agency to take action on the parts of S.170 that can be implemented administratively.

The sharp drop in mortgage origination activity during the second quarter had a bigger impact on retail loan production, according to a new Inside Mortgage Finance ranking and analysis. But a much bigger change lies ahead as Bank of America this week announced plans to get out of the wholesale correspondent market. The company was the second largest correspondent lender in the industry during the first half of 2011, acquiring $49.23 billion in production. That represented a significant 8.3 percent of total home mortgage origination over the first six months of the year and nearly a quarter of industry-wide production in the correspondent channel. In a statement, BofA said...[Includes six data charts]

President Barack Obama and his advisors are scrambling to come up with ways to push the halting U.S. economic recovery forward, including the possibility of a major government mortgage refinance plan to help bolster the housing market. In a recent report, Deutsche Bank analysts said the administration has three options: remove or reduce the loan-level price adjustments that Fannie Mae and Freddie Mac now charge...

Fannie Mae and Freddie Mac last week both “de-listed” PMI Mortgage Insurance Co. as an eligible private MI, a further blow to a private MI business that has been driven to the brink by the housing market collapse. Republic Mortgage Insurance Corp. was forced to stop writing new business this week as North Carolina regulators declined to extend a waiver of risk-capital ratios under which it had remained in the market. Together, PMI and RMIC accounted...

Only about 18 of the 247 “high cost” metropolitan markets will avoid seeing their FHA loan limits lowered at the end of this month, when the emergency loan-limit adjustments for the FHA, Fannie Mae and Freddie Mac are set to expire, according to a new analysis by Inside Mortgage Finance. All 24 metro markets that now have loan limits of $729,750 (or higher in Hawaii) will see their limits dropped to at least $625,500, and some of these areas in California will see...