Private mortgage insurers took heavy losses during the second quarter of 2011 but managed to recover some market share that had been lost earlier in the year to the FHA, according to a new analysis and ranking by Inside Mortgage Finance. Overall, mortgage lenders originated $82.70 billion of home loans with primary mortgage insurance coverage during the second quarter, down 11.6 percent from the first three months of the year. That was measurably better than the 18.5 percent sag in total mortgage originations, however, and it lifted the primary MI share of new business to ... [contains four data charts]

The House Financial Services Committee’s second highest ranking Democrat is again facing ethics charges stemming from actions she allegedly took to aid a minority bank connected to her husband to recover losses it suffered when Fannie Mae and Freddie Mac preferred stock plummeted after the GSEs were put into conservatorship.The House Ethics Committee announced two weeks ago it will restart its investigation of ethics charges against Rep. Maxine Waters, D-CA, with the hiring of Washington, DC, attorney Billy Martin as an outside counsel to the committee to “review, revise and assist the committee in completing the matter.”

The Federal Housing Finance Agency said last week to expect further litigation in its ongoing efforts to recover losses suffered by Fannie Mae and Freddie Mac in connection to the two GSEs’ investments in non-agency securities.Last week, the Finance Agency filed suit against UBS Americas Inc. and various related entities alleging misstatements and omissions of non-agency MBS purchased by Fannie and Freddie.

A new evaluation program rolled out by Freddie Mac last week will soon provide each of the GSE’s servicers with a monthly ranking based on earned performance points allowing it to see how a servicer ranks relative to its competitors.Freddie’s Servicer Success Program, which took effect Aug. 1, replaces the GSE’s traditional performance-tiered ranking by evaluating servicer performance in investor reporting and remitting and default management.

Look for the tug of war between proponents and opponents of extending high-cost loan limits for Fannie Mae, Freddie Mac and the FHA to go down the wire and even heat up when Congress returns from its summer break in September, Hill watchers predict.Unless Congress intervenes, the “emergency” high-cost market conforming loan limits that were enacted in 2008 will expire on Oct. 1. That would drop the top Fannie, Freddie and FHA loan limit from the current maximum $729,750 to $625,500.

Fannie Mae and Freddie Mac have each suspended Republic Mortgage Insurance Co. and its affiliate RMIC of North Carolina effective immediately as approved mortgage insurers after the GSEs concluded the mortgage insurer will no longer be able to meet mandatory capital requirements.According to Fannie’s July 29 announcement, RMIC breached its regulatory risk-to-capital limits required by North Carolina, the mortgage insurer’s state of domicile, as of Sept. 30, 2010.

A report by RealtyTrac shows that foreclosure activity decreased on a year-over-year basis in 178 of the nation’s 211 metropolitan areas with a population of 200,000 or more. The report found a decrease in foreclosure activity in the top 10 metropolitan areas in the first half of 2011 compared to the first half of 2010. Seattle was the only exception with a nearly 10 percent increase in foreclosure activity from the first half of 2010. Seattle’s foreclosure rating is now 57th among all metro areas, up from a 97th ranking in the first half of 2010. California, Nevada and Arizona cities represented the top 10 metro foreclosure rates and 15 of the top...

Fannie Mae and Freddie Mac will not be branching out into the role of a “master servicer” in a new, yet-to-be-launched $2 billion bond program as top Republican members of the House Financial Services Committee feared, according to Treasury Secretary Timothy Geithner.In a letter dated July 21 and in response to a letter sent by Committee Chairman Spencer Bachus, R-AL, Vice Chairman Jeb Hensarling, R-TX, and four of the committee’s subcommittee chairman, Geithner firmly ruled out any participation by the two GSEs in Treasury’s loan-guarantee program.

In the 18 states that have loan limits scheduled to expire come October, the impact on borrowers will be minimal, according to a recent report released by economists at the Federal Housing Finance Agency. The National Association of Realtors, the Mortgage Bankers Association and the National Association of Home Builders have been lobbying to extend current high-cost loan limits that are scheduled to decline from a maximum of $729,750 to $650,500 on Oct. 1, claiming that the market isn’t stable enough to stand up without them. Sens. Robert Menendez, D-NJ, and Johnny Isakson, R-GA, this week introduced S. 1508, the Homeownership Affordability Act of 2011, to allow...