House Financial Services Committee Chairman Jeb Hensarling, R-TX, last week pushed through committee his bill to replace Fannie Mae and Freddie Mac with a new securitization “utility” without any government backing, but opponents of the bill warn that the measure will have a much tougher time getting votes on the House floor. The Protecting American Taxpayers and Homeowners Act, H.R. 2767, was approved by a 30-27 margin with all the committee’s Democrats and even two Republicans voting against it. Before last week’s 10-hour bill markup, House Democrats released their principles for housing finance reform. In addition to preserving the 30-year fixed-rate mortgage, Dems aim to establish a system with an explicit government guaranty paid for by the private sector and maintain regulations that the House GOP wants to eliminate.

A pair of newly filed bills by a lone Senate Democrat would see the Home Affordable Refinance Program further expanded as a means to provide underwater homeowners with new refi options. The Rebuilding American Homeownership Act, S. 1375, would modify HARP to allow loans “that lack a government guaranty” to be refinanced through HARP. The bill would also direct Fannie Mae and Freddie Mac to price for the risk that the GSEs would be assuming, so that the program has no net costs, as well as establish an automatic sunset for the program after 24 or 36 months.

The Federal Housing Finance Agency announced last week it has reached a settlement with UBS Americas for nearly $900 million to cover claims of alleged violations of federal and state securities laws regarding non-agency residential mortgage-backed securities purchased by Fannie Mae and Freddie Mac. Under the terms of the agreement, the Swiss bank will pay some $885 million divided roughly in half between the two GSEs. UBS will pay Fannie approximately $415 million and $470 million to Freddie to settle claims related to residential MBS offerings between 2004 and 2007. “The satisfactory resolution of this matter provides greater clarity and certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae’s and Freddie Mac’s assets on behalf of taxpayers,” said FHFA Acting Director Edward DeMarco.

A federal district court in Illinois did not err in dismissing a lawsuit by investors against a hedge fund over nearly $7 million lost in Freddie Mac stock before the GSE was forced into conservatorship, according to a recent ruling by the Seventh Circuit Court of Appeals. The appeals court agreed with the lower court that the plaintiffs failed to present any valid cause of action.

Mortgage lenders saw a noticeable decline in refinancing of underwater Fannie Mae and Freddie Mac mortgages during the second quarter of 2013, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. Overall refinance volume at the two government-sponsored enterprises declined by 13.6 percent from the first quarter of 2013 to the second, although refi activity continued to make up a huge 75.8 percent of GSE business. Deliveries of Home Affordable Refinance Program ... [Includes two data charts]

Mortgage lenders and servicers are dealing with increased regulatory scrutiny, compressed margins and a competitive origination environment. As interest rates continue to rise, firms are finding that many of the loans they currently service may no longer qualify as suitable refinance candidates. Additionally, as property values stabilize, a growing number of borrowers may become easy targets for other lenders. To address these issues, Rumson, NJ-based Loan Value Group has developed a package of ...

Ocwen Financial Solutions Private Limited, a vendor based in India, received high marks from Morningstar Credit Ratings. OFS is a subsidiary of Ocwen Financial that handles servicing for more than 50 clients. Morningstar said the vendor’s metrics meet or exceed industry standards for customer relationship management, homeownership retention and delinquency management. “Ocwen India, with its multiple servicing platforms, extensive and ...

Mortgage delinquencies increased by nearly 10 percent in June compared with the previous month, following five months of declines, according to Lender Processing Services. The increase is seen as a seasonal move, with delinquencies expected to continue to decline over the long-term. LPS last week estimated that the total delinquency rate, loans 30 or more days past due but not in foreclosure, was 6.68 percent as of the end of June, up from 6.08 percent in May. Foreclosures also increased ...

Of all the compliance problems uncovered during quality-control audits and reviews of mortgage loans, three are recurring with consistency during the origination phase and originators should pay close attention, said a quality-control specialist. Tommy Duncan, chief executive officer of Quality Mortgage Services and a certified mortgage technologist, said errors continue to happen even though lender compliance has improved from previous years. Overall, regulatory compliance on the ...