Fannie Mae’s $759 million new headquarters has been the centerpiece of public criticism over the past week. A Federal Housing Finance Agency Office of the Inspector General report criticized the FHFA for allowing what it called excessive spending on the downtown Washington, DC, headquarters, which broke ground in mid-May. The review stemmed from an anonymous hotline complaint alleging overspending on the project. The IG questioned the FHFA’s oversight and recommended the agency closely scrutinize the building’s plans and budget. The problem arose when the cost to build out the new space to Fannie’s specifications increased by 54 percent from January 2015. Costs rose from $164.32 square feet to $252.81 square feet. Then back down some in May 2016 to $223.35/square foot.

An Arkansas Congressman introduced a bill last week that would require the Treasury Department to annually exam the possibility of ending the GSE conservatorship.Rep. French Hill, R-AR, said H.R. 5505, the GSE Review and Reform Act, would require Treasury Secretary Jack Lew to lead the reform of Fannie Mae and Freddie Mac. It would amend the Consumer Financial Protection Act of 2010 to require annual studies on ending the conservatorship of the GSEs. He noted that outside of a study done in 2011, the administration has had little engagement with Congress on a path toward ending the eight-year conservatorship and reforming the “broken” housing finance system. Hill added that the...

The increase in first-time homebuyer volume and market share has occurred without looser underwriting in terms of credit scores and loan-to-value ratios…

Fannie Mae and Freddie Mac MBS guarantee fees are too high, given the strong credit profile of new business since the financial crisis, according to a diverse collection of real estate, banking and consumer interest groups. The groups called on the Federal Housing Finance Agency to lower MBS guarantee fees charged by the two government-sponsored enterprises, and to reduce or eliminate the loan-level pricing adjustments that are typically wrapped into the consumer’s note rate. The average g-fee has jumped from 22 basis points in 2009 to 58 bps in 2014, including the 10 bps surcharge that Congress mandated in 2011 to cover a payroll tax cut. Loan-level pricing adjustments can total...[Includes one data table]

Mortgage-finance reform doesn’t look to be anywhere on the horizon, but at some point government policymakers will have to figure out what to do with trillions of dollars of Fannie Mae and Freddie Mac MBS if the two government-sponsored enterprises are put out to pasture. In fact, the transition to a new GSE single security that’s scheduled to start in 2018 could become a test run of sorts for the even bigger changes ahead, according to a paper published by the Urban Institute. Crafted by five mortgage-industry veterans, “A More Promising Road to GSE Reform” is centered on the creation of a new government corporation that would replace Fannie and Freddie. The National Mortgage Reinsurance Corp. would issue...

Outreach and lender-education efforts by industry groups, such as the National Association of Realtors and the National Association of Home Builders, have boosted refis as well...

In fact, the transition to a new GSE single security that’s scheduled to start in 2018 could become a test run of sorts for the even bigger changes ahead…

Mortgage lenders continue to face persistent repurchase demands from Fannie Mae and Freddie Mac, but a growing share of them end up being withdrawn, according to a new Inside Mortgage Trends analysis of disclosures made by the two government-sponsored enterprises. During the first quarter of 2016, lenders repurchased or replaced $315.0 million of mortgage loans for breaches of representations and warranties. That was a record low for ... [Includes two data charts]

The chance of Fannie Mae/Freddie Mac reform legislation passing Congress this year is virtually nil. But that hasn’t stopped industry trade groups from talking about the topic, or dispensing a barrage of advice for the Federal Housing Finance Agency about the withering capital cushions at Fannie and Freddie. The way things stand today, the largest industry trade organizations – and arguably the most powerful politically – are taking the position of “all or nothing” mortgage-finance ...

Housing industry trade groups and other interests joined forces this week in urging the Federal Housing Finance Agency to lower GSE guaranty fees. Fannie Mae and Freddie Mac are no longer exposed to the credit risk they were at the height of the crisis in 2008, they said in a letter to FHFA Director Mel Watt. The June 22 letter was signed by 25 organizations, including the Consumer Mortgage Coalition, Mortgage Bankers Association and U.S. Mortgage Insurers. It not only called for lower g-fees but also said loan-level price adjustments need to be reduced or eliminated. The groups argue that both fees prevent qualified borrowers from entering the housing market.