Lenders should now consider themselves on notice that the GSEs have adopted an even more aggressive posture in pressing their representation and warranty rights on mortgage loans they find wanting, analysts say, as evidenced by last week’s announced $330 million repurchase of Freddie Mac mortgages by Bank of America. A Freddie spokesman said that the GSE and BofA “mutually agreed” that the bank would repurchase the 2010 and 2011 loans that were not eligible for sale to Freddie under the terms of the company’s contracts with BofA. Specifically, the loans were underwritten using alternative valuation methods that were prohibited for use in the underwriting of the particular types of mortgages involved.

Mortgage Guaranty Insurance Corp.’s hopes for a “business as usual” relationship with Freddie Mac despite the mortgage insurer’s recent lawsuit against the GSE over a pool insurance dispute appears to be wishful thinking after Freddie has counter-punched with litigation of its own, claiming breach of contract and seeking punitive damages. Two weeks ago MGIC filed suit against Freddie and the GSE’s regulator, the Federal Housing Finance Agency, in the U.S. District Court Eastern District of Wisconsin, Milwaukee division, where the MI is based.

Some 50 percent of registered voters view Fannie Mae and Freddie Mac negatively, according to a new survey by the Tarrance Group on behalf of the Woodrow Wilson International Center for Scholars. The national survey of registered “likely” voters found that Fannie held a 51 percent unfavorable to 22 percent favorable impression among voters surveyed while Freddie’s numbers were just as dour – 50 percent unfavorable to 17 percent favorable.

Fannie Mae’s short list to replace its outgoing chief executive has been narrowed down to two finalists – one leading candidate from within and another from outside the company. A source familiar with the inner workings of the company confirms published reports that Timothy Mayopoulos, Fannie’s chief administrative officer and general counsel, is the leading candidate among the GSE’s CEO search party.The company is also looking at S.A. Ibrahim, CEO of Philadelphia-based mortgage insurer Radian Group, as a strong contender for the top job.

It’s far too early for lawmakers to entertain another expansion of the Home Affordable Refinance Program given that the most recent tweak to the program, HARP 2.0, only just recently became fully active, according to the Federal Housing Finance Agency. The FHFA has maintained that HARP 2.0 remains a work in progress given the revamped program’s graduated rollout of changes, but this week the Finance Agency said a proposed bill in the Senate to create HARP 3.0 would only get in the way. “The initial results on the enhanced HARP program show that it is working, and new legislation at this time would slow down that progress,” said FHFA Senior Associate Director for Housing and Regulatory Policy Meg Burns.

Eight members of California’s congressional delegation, both Republicans and Democrats, have filed a bill to preclude Golden State foreclosed homes owned by Fannie Mae from being sold to large investors under a fledgling pilot program championed by the GSE’s regulator. Filed last week by Republican Rep. Gary Miller, H.R. 5823, the Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012, would prohibit the Federal Housing Finance Agency from implementing its initiative to sell Fannie’s real estate-owned properties to California institutional investors. The bill has the strong backing of both the California Association of Realtors and its Washington, DC-based affiliate, the National Association of Realtors.

Fannie Mae and Freddie Mac mortgage-backed securities remained the preferred investment choice of the 12 Federal Home Loan Banks during the first quarter of 2012, with a modest increase from the previous quarter, according to a new analysis and ranking by Inside The GSEs based on data from the Federal Housing Finance Agency. Meanwhile, Ginnie Mae securities posted a decline within the FHLBank system during the first three months of the year. GSE MBS accounted for 70.7 percent of combined FHLBank MBS portfolios, up 2.3 percent from the fourth quarter of 2011. The Finance Agency’s data do not separately break out Fannie and Freddie volume or share.

A bill filed in the Senate two weeks ago would require mortgage servicers to respond to a short-sale offer within 30 days and make a final decision on acceptance within 60 days of receiving a purchase offer. The Stopping Ongoing Lender Delays (SOLD) Act, S. 3177, sponsored by Sen. Dean Heller, R-NV, would amend the Truth in Lending Act to require servicers to provide prompt responses to homeowners seeking to refinance or “for other purposes” including short sales. “By placing a shot clock on these decisions, it will reduce the amount of time it takes to sell a property, improve the likelihood that the transaction will close, and reduce the number of foreclosures in Nevada and across the country,” Heller said in a Senate floor speech on May 15. “Stability in the housing market is critical for long-term growth.”

Although at least one Senate Republican shows interest in a plan to expand the Home Affordable Refinance Program, the outlook for Congressional action remains doubtful and House Democrats are pushing the Federal Housing Finance Agency to make further HARP changes administratively. During a Senate Banking, Housing and Urban Affairs Committee hearing last week on legislation to expand HARP, Sen. Bob Corker, R-TN, said he was open to the proposal. “I hope that we’ll have a real mark-up on this bill,” he said. Senate Democrats Robert Menendez (NJ) and Barbara Boxer (CA) have introduced legislation...