Fannie Mae is having internal discussions regarding how it might change the way it holds mortgage seller/servicers responsible for losses when a deficiency is discovered on a delivered loan. A spokesman for Fannie told Inside The GSEs that under one scenario, a lender might take the “credit loss” on a mortgage with Fannie agreeing to keep the loan as opposed to forcing a buyback. A deficiency might include a mistake made during the underwriting process, such as borrower information being incorrectly punched into a computer. “If data were punched in wrong, there might be a pricing change,” said the spokesman.
Nearly all banks and thrifts gradually increased the fair market value they calculated for their mortgage servicing rights during the fourth quarter of 2012, according to a new Inside Mortgage Trends analysis of call report data. At the end of the year, banks and thrifts serviced a total of $5.323 trillion in home mortgages for other investors and they valued these MSRs at $41.43 billion. The ratio of fair market value of the MSRs to unpaid principal balance of loans serviced for others was ... [Includes one data chart]
Freddie Mac’s real estate sales unit is looking to bring in more lending partners to widen the reach of its financing program implemented last year specifically to move the GSE’s real-estate owned properties. Since the company rolled out its Homesteps Financing program during the second half of 2012 in four select states, the new financing option for both owner-occupied and investor purchase of REO properties has yielded promising enough results to prompt expansion, says a Freddie…
Contrary to what critics claim or what other studies purport to say, the majority of appraisals support the home-sale contract price, thanks to appraisers’ due diligence in developing a market-value opinion on the underlying collateral, according to the American Enterprise Institute. Citing data from a 2012 study by FNC, Inc., on how appraisal valuations respond to stressful local market conditions, the AEI said that a separate real-estate industry study claiming that low appraisal values are ...
Few multistate lenders subject to reviews by state regulators submitted sufficient mortgage call report data last year, according to the Multistate Mortgage Committee. The regulators also cited lenders for origination issues and said they are working toward settlements with smaller servicers. The 2012 annual report released late last week by the MMC detailed two separate widespread data-related violations of state regulations, one involving limited scope electronic exams and the other involving a risk profiling program. The LSE exams were introduced...
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