Freddie Mac set a new company record for multifamily lending last year by financing $73.2 billion in loan purchase and guarantee volume. That’s a noteworthy 30 percent increase from the $56.8 billion financed in the previous year and translates to 820,000 units. Freddie attributes the growth to a host of new offerings and executions. The GSE set records in small-balance loans, targeted affordable housing and its Green Advantage businesses. “The strength of our innovative products, underwriting and world-class securities brings liquidity to every corner of the multifamily market,” said David Brickman, Freddie’s executive vice president and head of multifamily.
The GSEs have been purchasing more adjustable-rate mortgages in the past year and the Federal Housing Finance Agency Office of Inspector General said that warrants monitoring. Since November 2016, the GSEs’ purchase of ARMs has grown. The numbers are far lower than the volume of ARMs purchased during the housing bubble in the early 2000’s, a new IG white paper noted. The ARM share of single-family mortgage purchases by the GSEs dropped from around 20 percent in 2006 to 12 percent in 2007. And by 2009, ARM purchases by Fannie and Freddie tumbled to just 2.3 percent of their single-family business. From 2007 to 2010, the GSEs tightened restrictions on their purchase of ARMs, including those with nontraditional features and layered risk.
Borrowers in rural communities would suffer if the resolution of the limbo status of Fannie Mae and Freddie Mac winds up creating more headwinds for community-based banking institutions.The Brookings Institute published a new report by the Center for Responsible Lending explaining how housing-finance reform proposals will profoundly affect lending in rural communities. The report said the GSE financing meets a critical need in rural areas, home to almost a quarter of the population and17.5 percent of mortgage loans in the U.S. In 2016, 30.3 percent of all loans originated in rural areas were sold to Fannie and Freddie, the CRL said.
In a joint brief filed this week, federal respondents took issue with arguments made by GSE shareholders in their fight against the net worth sweep and said a shareholder petition for a Supreme Court review of their case should not be granted. Shareholders in several cases filed three petitions for a writ of certiorari back in November. The plaintiffs asked the Supreme Court of the United States to intervene to “restore certainty and uniformity.” They claim that the Federal Housing Finance Agency acted unconstitutionally when it imposed the net worth sweep.
Freddie Mac Names Head of HR and Diversity. Freddie Mac announced that Jacqueline Welch has been named head of the Human Resources, Diversity & Inclusion (HRDI) division and chief diversity officer. In her expanded role as senior vice president of HRDI and CDO, Welch will be a member of the company’s senior operating committee and will report directly to Freddie Mac CEO Donald Layton. Welch joined Freddie in December 2016, and the GSE says she brings more than 20 years of experience in HR strategy and execution to the company. Chicago’s Bridgeview Bank Now Fannie Mae Approved. This week, Chicago-based Bridgeview Bank announced it has received Fannie Mae approval, which allows the company to expand its consumer home financing business.
Although the stars might be aligned for legislative reform of Fannie Mae and Freddie Mac this year, new developments late this week illuminate the difficulty of the task at hand.
Freddie Mac recently introduced a new front-end credit-risk transfer option for its Agency Cred-it Insurance Structure program, the second-largest form of its CRT activity.
After their case against the Federal Housing Finance Agency was dismissed by the U.S. District Court for Delaware in November, government-sponsored enterprise shareholders David Jacobs and Gary Hindes recently filed an appeal.
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