Sen. Bob Corker’s last-minute decision to vote for the massive GOP tax bill caused a ruckus in the press and social media, but the Senator’s communications director attributed the noise to opponents of his efforts to pass housing-finance reform. The controversy arose when Corker, R-TN, was accused of voting for the tax overhaul only after he saw a provision that would reap him financial gains. Weeks before the final vote, Corker was the only Republican senator set to vote against an earlier version of the bill. Corker is said to have significant holdings in companies that would benefit from a tax break for real estate-related pass-through corporations and partnerships.
Fannie Mae and Freddie Mac plan to tackle issues related to mortgage servicing and the borrower experience as part of their 2018 goals. The Federal Housing Finance Agency released the “scorecard” for the GSEs late last month, which outlines specific priorities the duo are expected to focus on throughout the year. The GSEs are charged with assessing the current mortgage servicing business model and developing specific plans to support servicing liquidity. The FHFA charged the GSEs to “assess the challenges and potential solutions for improving the borrower experience, expanding liquidity, and increasing efficiency of the servicing market.”
The total book value of the Federal Home Loan Banks’ eligible collateral was up 21 percent in 2016, rising to $2.8 trillion from $2.3 trillion, according to the Federal Housing Finance Agency’s recently released report to Congress highlighting the amounts and types of collateral pledged to the FHLBanks.Advances over the same period rose by 11 percent from $634 million to $705 million. Reported borrowing capacity was $2.1 trillion. Single-family and multifamily residential loans accounted for the majority of the book value of collateral, both eligible (61 percent) and pledged (58 percent).
Fair housing advocates and civil rights groups wrote the Senate Committee on Banking, Housing and Urban Affairs to express concerns about not having a seat at the table as lawmakers draft GSE reform legislation. The groups, which include the Center for Responsible Lending, National Fair Housing Alliance and the NAACP, said current House and Senate proposals would do significant harm by locking out the very borrowers who depend on a future system, resulting in devastation to a recovering market. “Our constituents have a strong stake in the outcome of any legislative proposals in this area, and we are alarmed that we have not been invited to offer...
With new Fannie Mae and Freddie Mac draws on the Treasury’s line of credit now imminent because of tax cut legislation, one GSE shareholder says the payments should be accounted for as paybacks for money that was unfairly taken. Gary Hindes, a Fannie shareholder, has argued unsuccessfully that the Treasury sweep of GSE profits violates state law in Delaware and Virginia, where Fannie and Freddie are incorporated. Having lost the first round, the case is currently on appeal to the U.S. Court of Appeals for the Third Circuit. In a statement released this week, Hindes blasted the agreement between the GSEs and Treasury.
Fannie Affordable Housing Challenge. Fannie Mae launched a $10 million challenge to help address the affordable housing crisis. Through the Sustainable Communities Innovation Challenge, the GSE will commit $10 million over two years to attract promising ideas that will help alleviate affordable housing issues. Fannie expects to receive proposals from across the public, private, and nonprofit sectors. Maria Evans, Fannie’s vice president of sustainable communities’ partnership and innovation, said, “With the Challenge, we are looking for new concepts, designs, and ways of solving our nation’s affordable housing issues from innovators who are working inside and outside of the traditional housing industry. Great ideas can come from anywhere.” The goal is to...
Progressives are worried that in 2019 a new Federal Housing Finance Agency director will takeover, undoing much of what they like about the current system…
And now for the bad news: The lower corporate tax rate will force Fannie and Freddie to write down the value of their deferred tax assets by $15.3 billion…
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