Legislation introduced last week by a Senate Republican would revoke the charters of Fannie Mae and Freddie Mac and create a new Mortgage Finance Agency for the securitization of single-family and multifamily mortgages. Meanwhile, a separate bipartisan Senate bill still in the works would also dispense with the existing two government-sponsored enterprises while building a new one. Filed on May 23 by Sen. Johnny Isakson, the Mortgage Finance Act of 2013 is patterned on legislation the Georgia Republican proposed in 2011. It would put the GSEs into “irrevocable receivership,” with the Federal Housing Finance Agency tasked as their receiver no later than 18 months after enactment of the bill. “Immediately upon placement of the enterprises into receivership, the FHFA shall commence...
Consumer advocate Ralph Nader doesn’t exactly have a seat at the mortgage reform table, but that isn’t stopping him from asking the Treasury Department to do something to protect what he calls “the already financially injured common shareholders” of Fannie Mae and Freddie Mac. In a recent letter to Treasury Secretary Jack Lew, Nader blames a host of senior government officials – including Federal Reserve Chairman Ben Bernanke – for misleading investors about the financial health of Fannie and Freddie just months before they were seized by the federal government in September 2008. Nader, a one-time shareholder in the government-sponsored enterprises, is pushing...
Mark Savitt, president of the National Association of Independent Housing Professionals, told Inside Mortgage Finance that including “lender paid” compensation to brokers in the 3 percent cap is “double counting.
Non-agency MBS execution is competitive with agency MBS execution for purchase mortgages with loan-to-value ratios below 70 percent and credit scores above 740.
Come next year, Freddie Mac will assess lenders a fee of $7,500 if they fail to deliver mortgage loans with an aggregate principal balance of more than $5 million.
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