Should Fannie Mae and Freddie Mac increase the 25 basis point servicing fee they pay mortgage companies that service their loans? The issue was apparently raised by at least one mortgage executive at a recent advisory board meeting that Fannie held with some of its customers. Two servicing advisors with knowledge of the meeting confirmed the story, but few in the industry believe that any type of increase is being contemplated at this time. One major concern centers...
The Senate Banking, Housing and Urban Affairs Committee is expected to vote on the housing finance reform legislation next week, but there’s a growing consensus among industry observers that no amount of last-minute patchwork compromises will make the bill ready for a prime-time Senate vote. Many observers said last week’s abrupt announcement by Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, to delay consideration of S. 1217 in order to gain more than the minimum 12 votes needed to clear the committee doomed the chances of getting the bill to the floor for a vote. A banking committee staffer told...
Fannie Mae and Freddie Mac together earned $9.3 billion in the first quarter, thanks largely to big settlements of lawsuits over non-agency mortgage-backed securities. Together, the two government-sponsored enterprises will have paid about $213.1 billion to the Treasury at the end of June, roughly $25.1 billion more than the $188 billion the two companies have drawn from the Treasury since being placed in government conservatorship. Freddie earned...
Before joining the FHFA in late 2011, Hornsby spent 26 years at the Federal Reserve Bank of San Francisco, the last 10 under Janet Yellen, who is now the nation’s central banker.
“The first thing we found is that homeowners need to know that they’ve been assigned a trusted advisor who will help them navigate the work out process,” explained one Fannie Mae official.
CSP watchers say the GSE platform is starting to look like an orphan under director Mel Watt. But will Watt mention the project in his first public speech next week?
Freddie CEO Don Layton warns that staffers “at all levels” would flee the secondary market giant amid the five-year transition period, citing several provisions of the bill that are detrimental to employees.
Based on what Freddie's Layton said, one might think that going forward, the GSEs might barely break even. Maybe that’s why the GSEs – and not necessarily Mel Watt – want to hike their guaranty fees…
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