Conforming-jumbos accounted for almost 10 percent of GSE business on single-unit properties in the first half of this year...

Freddie CEO Don Layton noted that, “G-fees now account for more than 40 percent of income and is becoming a growing revenue source.”

At the midway point of 2015, the group’s $8.061 billion in year-to-date mortgage-banking income was up 15.1 percent from the first six months of 2014.

A bill seeking to block the proposed pay raises for Fannie Mae and Freddie Mac CEOs was passed with bipartisan support this week by the House Financial Services Committee. As controversial talks of pay raises for Fannie and Freddie CEOs intensified, Rep. Ed Royce, R-CA, continued to push his legislation to cap the salaries with H.R. 2243, the Equity in Government Compensation Act of 2015. Royce was adamant and said Congress needs to put a stop to the “planned multi-million dollar paydays” at the GSEs. The CEOs could have gotten up to $4 million each in annual total compensation. Earlier this month, the Federal Housing Finance Agency authorized the removal of a pay cap.

The U.S. Court of Federal Claims Court ordered the U.S. Treasury to release all discovery documents pertaining to the conservatorship of Fannie Mae and Freddie Mac last week in connection with the Fairholme Funds v. The United States case. In a move forcing the U.S. Treasury to release all discovery documents pertaining to the GSE conservatorship, a court ruling last week is a rare legal victory for Fannie Mae and Freddie Mac investors. Attorneys for Fairholme believe that the government is deliberately stonewalling, making it more difficult to get a true understanding of the events and decisions leading up to the third amendment sweep.

The amount of lead time the market will need to make changes to prepare for the single security was one of the concerns discussed at the first advisory group meeting for the single security/common securitization platform.Members, comprised of trade group officials as well as representatives from Fannie Mae, Freddie Mac and Common Securitization Solutions, convened for the first time in mid-July at the CSS office in Bethesda, MD.Operational and technology impacts were discussed, according to notes summarizing the meeting, and most participants agreed that a quick fluid transaction would be best, with conversion to the new security taking place as soon as possible. Most members agreed that the transition could be completed within three or four months but said system changes could take longer.

Industry groups commenting on the Federal Housing Finance Agency’s adjustments to the conforming loan limit by July 27 were primarily supportive with the exception of one trade organization. Trade group commenters include American Bankers Association, CoreLogic, the Mortgage Bankers Association, the Urban Institute’s Housing Finance Policy Center, the National Association of Federal Credit Unions and the National Association of Realtors. The FHFA plans to use the “expanded data” house price index published by the agency since 2011 to make adjustments to the baseline conforming loan limit. David Stevens, president and CEO of the MBA said the FHFA’s review regarding alternative indexes is thorough.

Freddie Mac launched a new credit risk-transfer offering late last week that’s structured more like a non-agency mortgage backed security. One analyst said it could prompt more participation from real estate investment trusts. The $300 million offering, the Freddie Mac Whole Loan Security, features a $278 million senior class guaranteed by the GSE and a $23 million subordinate actual-loss security. WLS 2015 SC01 is backed by super-conforming loans originated in the fourth quarter of 2014 and early 2015. The GSE said by shifting some of its credit risk from the underlying mortgages to subordinate investors, the new offering compliments its Structured Agency Credit Risk and Agency Credit Insurance offerings.

The Federal Home Loan Bank of Chicago, which operates the Mortgage Partnership Finance Direct Program for nine FHLBanks, began issuing Ginnie Mae securities last week. Its first issuance was a $5 million security backed by mortgages originated by community lenders through the MPF Government MBS product. With the MPF Government MBS product, the MPF program buys fixed-rate mortgage loans originated by FHLBank members that are insured or guaranteed by government agencies. Matt Feldman, president of the Chicago FHLBank, called it “an important milestone for the MPF Program,” adding that Ginnie Mae securities are among the most liquid financial instruments in the world. He said the new product will allow FHLBank members to offer competitive FHA, VA and government guaranteed Native American and rural housing mortgages.

The Federal Housing Finance Agency recently established guidelines for the Federal Home Loan Banks to use when developing their individual strategic business plans.These guidelines were created to help determine if the 11 institutions are successfully achieving their core mission of making advances and establishing limits on its maximum holdings of acquired member assets.The FHLBanks are also charged with supporting their banks’ housing finance and community lending mission in less direct ways including advance commitments, housing finance agency debt instruments and investment in certain small business investment company securities and more.In assessing each of the banks’ core mission achievement the FHFA said it will calculate the ratio of its Primary Mission Assets relative to Consolidated Obligations at the...