MBA chief Dave Stevens: “What happens if the president nominates a new [FHFA] director who thinks the government role in mortgage finance is too large and wants to scale it back?"
Cowen: “We continue to believe the Senate Banking Committee must release a legislative plan in 2017 for Fannie and Freddie if it is to be enacted in the 115th Congress.”
Most servicers of Fannie Mae and Freddie Mac single-family mortgage-backed securities saw growth in their servicing portfolios during the third quarter, but a handful of top banks continued to buck the trend.A new Inside The GSEs analysis of MBS disclosures shows $4.629 trillion of Fannie/Freddie servicing outstanding at the end of September. That was up 1.8 percent from the previous quarter, with Fannie (up 2.1 percent) gaining market share on Freddie (up 1.3 percent). Ginnie Mae servicing remained a faster-growing market, with $1.749 trillion outstanding, up 2.2 percent from the end of June. Large banks continued to show tepid interest in the GSE servicing market.
Fannie Mae and Freddie Mac are poised to report robust earnings for the third quarter, likely blowing past results of the prior two periods, according to an analysis by Inside The GSEs. The only question now is this: Just how good will it be? “And most of that money will be swept into the Treasury,” noted Tim Rood, a former Fannie Mae executive who now heads The Collingwood Group. Not only did the GSEs benefit from a strong origination and MBS issuance market in 3Q17, but a previously announced legal settlement with Royal Bank of Scotland will finally hit the books.
Federal Housing Finance Agency Director Mel Watt said the likelihood of a draw from Treasury is growing fast in a reply letter to the 15 trade groups that wrote late last month advocating for legislation instead of recapitalization. Watt reiterated his position in the Oct. 12 letter and said while he appreciates their views, he has expressed “repeatedly and publicly” that the declining capital buffers leave Fannie Mae and Freddie Mac with no ability to absorb potential losses. “FHFA is concerned that in the absence of a sufficient buffer, normal operating losses, such as from interest rate volatility and the accounting treatment of...
Freddie Mac teamed up with a financial technology company in a pilot program aimed at helping low and moderate-income borrowers with their loan payments. Last week, the GSE announced its partnership with EarnUp, a platform that assists consumers with making their payments on time and gives personal recommendations on paying down their debts. Freddie and EarnUp believe that borrowers are more likely to stay current on their loan payments if they are given a quick and easy option to do so. By working with one of three non-profit housing counseling organizations, Freddie said that consumers can take advantage of EarnUp for 12 months with no cost.
RSS