The FHFA has decided not to have a chairman for Common Securitization Solutions. Instead, the unit will be governed by a four-person "board of managers."
The Federal Reserve’s quantitative easing tapering will put a dent in Fannie Mae and Freddie Mac guaranty fee revenues, according to the Federal Housing Finance Agency’s Inspector General. The evaluation report issued by the IG last week concluded that as the central bank pulls back from the mortgage-backed securities market, interest rates will drift higher and the GSEs will do less business, meaning declining g-fee revenue.
The Mortgage Bankers Association has formally called upon the Federal Housing Finance Agency’s official watchdog to reconsider some of its proposals meant to prevent the next multi-billion dollar fraud scheme against Fannie Mae and Freddie Mac. In a letter dispatched to the FHFA’s Inspector General late last week, the MBA cited its opposition to certain recommendations the IG made to the Finance Agency in its August post-mortem on the swindle perpetrated by the now-defunct Taylor, Bean & Whitaker Mortgage.
Modified Freddie Mac mortgages performed better than Fannie Mae loans more than two years after modification as the performance gap between the two GSE closed slowly, according to the Office of the Comptroller of the Currency. The OCC’s latest Mortgage Metrics Report noted that Freddie loans had a 15.5 percent re-default rate six months after modification, while Fannie mods saw a 16.2 percent rate.At the 12-month mark, Freddie stood at 21.9 percent compared to Fannie’s 23.2 percent.
FHFA’s Watt Promises a CEO for the CSP by Year-end. After a year of searching for a chief executive to lead Common Securitization Solutions, the Federal Housing Finance Agency is getting closer to picking a candidate for the job. Speaking at the annual convention of the Mortgage Bankers Association in Las Vegas last week, FHFA Director Mel Watt promised the industry that a CEO would be named by Dec. 31. The FHFA’s search firm is Spencer Stuart.
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