A split in court rulings in cases involving “super-priority” liens makes the issue ripe for consideration by the Supreme Court of the United States, according to industry trade groups. Last week, the Mortgage Bankers Association, the American Bankers Association and the U.S. Chamber of Commerce submitted a joint amicus brief to the Supreme Court, stressing that super-priority liens “eviscerate” the traditional standing of mortgages. The court case of interest to the trade groups is...
The Federal Home Loan Banks have become too reliant on short-term funding of longer-term assets, according to Federal Housing Finance Agency Director Mel Watt. Speaking at the FHLBank Annual Director’s Conference this week, Watt reiterated his concern from a year earlier that over time a heavy reliance on short-term funding can strain the system’s capacity to issue short-term debt at attractive spreads. He acknowledged...
MBA's Stevens once again slams those in favor of a GSE “recap and release” plan, saying this group consists “primarily [of] stock speculators who are most concerned about personal profits” rather than the future of the U.S. housing system.”
Meanwhile, although GSE risk sharing seems popular in some circles, FHFA itself admitted recently that some of this coverage has come at premium cost to Fannie and Freddie.
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