More unsealed documents were released this week during the discovery process in a GSE shareholder case in the U.S. Court of Federal Claims. The eight documents ranged from an excerpt of former White House housing policy expert Jim Parrott’s deposition from January,to presentations from the Federal Housing Finance Agency in 2008 to several memos dating back to 2008 and 2012. In the two-page Parrott deposition excerpt, he said that the net worth sweep was a “Treasury-driven process,” when asked why he didn’t reach out to anyone on Capitol Hill about the plan. He added that to the degree there was outreach to Congress, it would have come from Treasury, not him.
Corona Asset Management XVIII won Fannie Mae’s fourth Community Impact Pool of nonperforming loans. Last week’s announcement represented the first time that the pool was sold to a private equity firm instead of a nonprofit group. The Community Impact Pool is structured to encourage nonprofits, as well as smaller investors and minority- and women-owned businesses. It’s designed to include geographically focused, high-occupancy collateral where bidders have a longer than usual time to participate in hopes of attracting diverse participation. Fannie began marketing this particular pool to possible bidders back in June with Bank of America Merrill Lynch and CastleOak Securities, L.P.
The Democratic Party released its 2016 platform and its priorities range from expanding foreclosure prevention programs to increasing access to affordable housing and preserving the 30-year fixed-rate mortgage. Dave Stevens, president and CEO of the Mortgage Bankers Association, said that when it comes to housing, the Democratic and Republican platforms are starkly different. “The Republican platform is almost solely about removing burdens on financial institutions and others who build homes, and the Democratic platform deals with both the demand and supply side in their policies,” he said during one of several real estate panels held at the Democratic National Convention in Philadelphia Democrats specifically mentioned...
OPERS Lawsuit Reinstated Over Freddie Subprime Loans. The Sixth U.S. Circuit Court of Appeals overturned a lower court decision that had cleared Freddie Mac of charges that it misled investors about its involvement in the subprime mortgage market. The lawsuit was filed in 2008 by the Ohio Public Employees Retirement System, which claimed Freddie made false public financial statements that hid its exposure to risky loans. The fund alleged that it lost more than $27.2 million as the value of Freddie stock plummeted. OPERS said the 29 percent drop in stock price in 2007 followed Freddie’s disclosure of a $2 billion loss. The pension fund claimed...
Overall, Fannie Mae’s bottom line was bolstered by a strong quarter for originations: $510 billion in the second quarter compared to $380 billion in the first, according to Inside Mortgage Finance.
The Federal Housing Finance Agency so far has resisted calls to lower guaranty fees charged by Fannie Mae and Freddie Mac and quietly set a “minimum base guaranty fee” for the two government-sponsored enterprises. The FHFA directive was revealed in the 10-Q filings issued by the two GSEs this week accompanying second-quarter financial results that showed a combined $3.94 billion in net income. Their Securities and Exchange Commission filings, however, provided little detail about what the minimum base fee is. “In July 2016,” Fannie’s 10-Q states...
Banks, thrifts and credit unions still accounted for 66.0 percent of the $7.206 trillion in single-family mortgages serviced by the top 50 companies, Inside Mortgage Finance found.
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