The government-sponsored enterprises will soon issue pilot non-agency risk-transfer transactions, according to officials at the Federal Housing Finance Agency, Fannie Mae and Freddie Mac. The GSEs missed a third quarter 2012 deadline set by the FHFA to issue risk-sharing transactions due to complications with the Commodity Futures Trading Commission. Patrick Lawler, chief economist at the FHFA, said a risk-sharing transaction will hopefully be issued in the “not too distant future.” Speaking at the ...
The investment period for the remaining funds participating in the Public-Private Investment Program ended during the fourth quarter of 2012, with four funds exiting the program during that time. The Treasury Department said it earned a profit from the PPIP, which focused on investment in non-agency mortgage-backed securities, and most of the individual funds also turned significant profits. “Our ability to aid in the stability of the MBS market and deliver solid investment ... [Includes one data chart]
Obama administration officials continue to claim that the administration is working toward a program to refinance or modify non-agency loans for borrowers with negative equity. Support in Congress for such a program is largely limited to Democrats, with the Obama administration suggesting that a non-legislative solution could be implemented. “We must expand streamline refinancing to families whose loans are not guaranteed by the government,” Michael Stegman, counselor to the Treasury ...
Assured Guaranty won a lawsuit this week against Flagstar Bank regarding a breach of representations and warranties on more than $900 million in non-agency mortgage-backed securities issued by Flagstar. Industry analysts suggest the ruling is significant as it is one of the first in favor of bond insurance companies trying to enforce breaches of reps and warrants, and U.S. District Judge Jed Rakoff endorsed many of the tactics they have used to seek buybacks, including ... [Includes two briefs]
A deeply divided House Financial Services Committee took on FHA solvency this week as critics and defenders clashed over the agency’s practices, financial health and future role in the nation’s housing market. The distinctly partisan tone of the hearing quickly raised doubt as to whether the Republican majority and their Democratic opponents can come to some compromise to strengthen the FHA and reduce its risk to taxpayers. Committee Chairman Jeb Hensarling, R-TX, echoed complaints by Republican colleagues that the FHA is ...
The FHA this week has proposed to set a 95 percent maximum loan-to-value ratio for FHA-insured loans over $625,500, effectively raising the minimum downpayment for jumbo loans from 3.5 percent to 5 percent. In a Feb. 6 Federal Register notice, the FHA said the proposed change is aimed at improving the health of the Mutual Mortgage Insurance Fund, whose statutory capital reserve ratio has fallen to a precarious level, raising the specter of a taxpayer bailout. Despite steps taken since 2009 to strengthen the MMIF, actuarial reviews of the fund have projected rising levels ...
Massachusetts will not join other states in the Justice Department’s lawsuit against Standard & Poor’s, but instead will conduct its own fraud probe tied to CDO ratings.
Fannie Mae and Freddie Mac's share of purchase-mortgage originations has increased each of the last two years, according to a new analysis by Inside Mortgage Trends.
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