Fannie Mae and Freddie Mac issued $177.19 billion in single-family mortgage-backed securities during the third quarter of 2011, a modest 14.3 percent improvement following two straight quarterly declines during the first six months of this year.The recent July-September cycle represented one of the weakest quarters historically for GSE MBS production since the financial markets crashed at the end of 2008.

As the Federal Housing Finance Agency ponders possible improvements to the government’s Home Affordable Refinance Program, calls from different corners of the industry are growing louder for the FHFA to end fees charged to borrowers who refinance Fannie Mae and Freddie Mac mortgages.

Any changes that would restrict membership or narrow the Federal Home Loan Banks’ mission should come first from Congress not by administrative fiat, Bank officials told House members this week.FHLBank of Dallas Chairman Lee Gibson testified before the House Financial Services Subcommittee on Oversight and Investigations that explicit Congressional guidance is both necessary and proper before any fundamental alteration of the FHLBank system is imposed.

The Federal Housing Finance Agency needs to explain why it hired expensive outside counsel instead of dispatching government lawyers in its massive litigation against the nation’s big financial institutions, as well as just how much the agency expects to recoup from the effort, according to a senior Republican congressman.

Despite the sound and fury from publicly peeved House Democrats directed at Federal Housing Finance Agency Acting Director Edward DeMarco, including calls for him to step aside, the consensus among industry insiders and those in the know on Capitol Hill is – good luck finding anyone else willing or able to jumpstart the underperforming GSE refinance plan while obeying the FHFA’s restrictive regulatory mandate.

The chairman of the House Committee on Oversight and Government Reform wants the Federal Housing Finance Agency to explain why it hired two outside law firms in a massive legal action to recover losses suffered by Fannie Mae and Freddie Mac on their investments in non-agency MBS. Rep. Darrell Issa, R-CA, wrote FHFA Acting Director Edward DeMarco on Sept. 29 asking why the agency hired outside counsel from Quinn Emanuel & Sullivan and from Kasowitz Benson Torres & Freidman to initiate lawsuits against financial institutions and how much the agency is paying them. Issa posed detailed questions and requested documents regarding...

U.S. policymakers are studying the Canadian mortgage market, which endured a far less costly downturn during the economic recession, for ideas that could be imported in the reform of the domestic mortgage finance system. “We must find characteristics in other countries similar to our own system,” said Rep. Carolyn McCarthy, D-NY, during a hearing in the House Financial Services Subcommittee on International Monetary Policy and Trade this week. In many ways, the U.S. mortgage market is unique. The ubiquity of the 30-year fixed-rate mortgage, a standard mortgage product here, is unparalleled elsewhere. While a 30-year...

The Securities and Exchange Commission has made a good bit of progress in updating its proposal for shelf eligibility conditions for ABS in light of industry comments and the passage of the Dodd-Frank Act. However, there are still numerous areas that concern major players in the mortgage finance industry. A number of commenters took issue with the SEC’s proposal to impose an additional executive officer certification requirement. The agency originally proposed requiring the issuer to file an exhibit to the registration statement consisting of a certification of the chief executive officer of the depositor that, to his or her knowledge, “the securitized assets backing the issue have...

Fannie Mae, Freddie Mac and Ginnie Mae dominate the mortgage market as they never have before, but all three MBS agencies are committing significant resources to overhauling their systems to prepare for an uncertain future. Freddie Mac “fully gets” the idea that the company does not control its future, said Ed Haldeman, CEO at the government-sponsored enterprise, during a panel session at this week’s annual convention of the Mortgage Bankers Association. But reform proposals that feature multiple MBS securitizers funded with private capital, such as the one put forth by the MBA, look like “a pretty decent road map to the...

Chase Home Finance surged past Bank of America to become the second most prolific producer of agency MBS during the third quarter, according to a new ranking by Inside MBS & ABS. Chase has played third fiddle behind BofA and Wells Fargo for the past few years, and still ranked third in agency MBS production on a year-to-date basis. But BofA has been dumping mortgage production capacity and trying to claw its way to higher ground while Chase has made modest gains in market share. Those trends are likely to accelerate in coming months as BofA closes down its correspondent business after failing to find a...(Includes two data charts)