A bill to redirect all 2016 funds from the Housing and Urban Development’s National Housing Trust Fund, which currently receives money from Fannie Mae and Freddie Mac to HUD’s HOME Investment Partnerships Program, was approved by a House subcommittee last week. Affordable housing advocates question the bill approved by the House Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies. In essence, the bill was designed to cover a shortfall in the HOME program funding. Sheila Crowley, president of the National Low Income Housing Coalition, said the bill “expresses a callous disregard for the plight of millions of Americans who labor in the low wage workforce and still cannot find modest housing they can afford to rent.”
A 2011 document from the Treasury Department that was leaked last week has raised questions over whether or not all required documents pertaining to a dismissed suit against the Treasury were turned in.The suit stems from GSE shareholders suing over the Third Amendment profit sweep, which requires Fannie Mae and Freddie Mac to turn over the bulk of their profits to the Treasury. The Jan. 4, 2011, memo, leaked to Insider Sources, is from Undersecretary for Domestic Finance Jeffrey Goldstein and has the subject line “Housing Refinance Reform Plan.” The memo to former Treasury Secretary Timothy Geithner outlined a number of issues to reform the two, including privatization and proposals to wind down the GSEs.
Having been in conservatorship for what is approaching close to seven years now, industry insiders are offering up their opinion on what’s next for Fannie Mae and Freddie Mac as the GSEs remain uncertain about their future. A recent editorial piece that ran in The Hill suggests a seven-step plan that will lead them out of conservatorship. “Making a Fannie and Freddie We Could Live With” is the title of the article authored by Mark Calabria, director of financial regulation at the Cato Institute, and Alex Pollock, a fellow at the American Enterprise Institute. The authors said that “nobody wants the old Fannie and Freddie back; nobody wants them to stay on indefinitely in conservatorship.”
New life-of-loan representation and warranty- exclusion guidelines issued by the GSEs in November, appeared to have little impact on banks’ lending policies so far, according to a recent Federal Reserve Board survey.The rep-and-warrant changes were intended to reduce uncertainty and increase transparency in addressing lenders’ concerns about when they might be asked to repurchase a loan. The concerns were based on repurchase risk and other market factors that can cause an increase in credit overlays. “Addressing these concerns by providing tighter definitions and clarity should encourage sellers to serve a broader range of qualified borrowers,” said Dave Lowman, Freddie’s executive vice president of single -family business, when the changes were announced in November.
While refinance activity grew and accounted for 63 percent of all conventional-conforming originations in the first quarter, the number of borrowers cashing out equity or consolidating loans dipped slightly from 29 percent in the previous quarter to 27 percent. That was still up from 17 percent cash-out share of refinances in the first quarter of 2014, according to Freddie Mac’s quarterly analysis. But Freddie said the net dollars of home equity converted to cash as part of a refinance remained low ...
For mortgage originators, going through a Consumer Financial Protection Bureau mortgage examination can be a daunting experience, but not if you walk in thoroughly prepared, according to compliance experts at GrantThornton. A CFPB lending exam can take up to six months to complete, can be quite expensive over time as well as delay business. At most banks and mortgage firms, the staff could work full time on just the CFPB audit, which could result in high overtime costs and ...
Nonbank mortgage firms continue to hire new employees thanks to increasing origination volumes and their ability to whittle away at the market share of the nation’s largest megabank originators. In the first quarter of 2015, lenders of different charters funded a better-than-expected $370 billion with nonbanks accounting for eight of the top 15 origination slots, according to Inside Mortgage Finance, an affiliate publication. Although megabanks such as Wells Fargo, Bank of America and ...
State-licensed mortgage lenders originated $72.8 billion of Veterans Administration home loans during 2014, according to a new analysis of mortgage call report data by Inside Mortgage Trends. VA home loan originations by state-licensed lenders – mostly independent, privately held mortgage bankers – rose 14.5 percent from 2013 to 2014. At the same time, production of conventional and FHA-insured loans fell by 26.3 percent and 23.3 percent, respectively ... [Includes one data chart]
Researchers at the Urban Institute found that, although the percentage of first-time homebuyers increased from 2011 to 2014, the national share of first-time homebuyers in the agency mortgage market fell from 57 percent in 2011 to just 54 percent last year. Researchers Bing Bai, Jun Zhu and Laurie Goodman, director of the Housing Finance policy center at the Urban Institute, attributed the change to a decline in FHA’s market share. From 2001 to 2003 ... [Includes one data chart]
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