Multifamily purchase volume continued to surge for the GSEs in the second quarter. But as the mortgage giants maintain their large footprint in the multifamily market, some industry observers allege mission creep. During the second quarter, Fannie Mae provided $14.5 billion in multifamily financing, up from $11.3 billion in the first quarter of 2018. Freddie Mac also increased its volume in the second quarter and provided $15.8 billion in multifamily credit, up from $13.0 billion in the first quarter. Second-quarter numbers are a good indicator that even at the midway point in 2018, the GSEs are on track to meet or surpass last year’s financing volume.
The GSEs have recently updated their policies as they look to simplify borrower-initiated requests to cancel private mortgage insurance coverage. Fannie is the latest to announce plans to update the various methods it uses for verifying current property values and said it will require servicers to implement the new policy by March 1, 2019. Borrower-initiated requests to terminate mortgage insurance based on the home’s original value no longer need to depend on servicers to warrant the property value, under Fannie’s new policy. The GSE said lenders can use the GSE’s Automated Property Service tool to verify the current...
Capital Proposed Rule Comment Period Extended to November. The Federal Housing Finance Agency announced this week that it is extending the public comment period for the agency's proposed rule on Enterprise Capital Requirements by an additional 60 days. The previous deadline for comments was Sept. 17, 2018. The new deadline will be Nov. 16, 2018. FHFA extended the public comment period “due to the high level of interest in the proposed rule and requests from multiple stakeholders for more time to evaluate it.” GSE shareholders group Investors Unite, said, “However complex capital standards are, professionals who dwell in this policy area every day should be able to offer their views within a three-month window.”
Rep. Maxine Waters, D-CA, is none too thrilled with plans by the Treasury Department and Comptroller of the Currency to open up federal banking charters to fintech firms.
Fannie Mae and Freddie Mac generated a combined $6.96 billion in net income during the second quarter of 2018, down from $7.19 billion in the first three months of the year. While Fannie posted a solid 4.6 percent quarterly increase, hitting $4.46 billion in the most recent period, Freddie’s net income was down 14.5 percent from the first quarter. At the midway point in 2018, both government-sponsored enterprises were way ahead of where they were in the first six months of last year ...
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