Fannie Mae and Freddie Mac are set to sell portions of credit risk on U.S. residential mortgages “to the tune of a very sizeable increase” year-over-year, according to a report by Fitch Ratings. The two GSEs have completed 11 transactions since the risk-sharing initiative was initiated in July 2013, with Fannie and Freddie expected to issue credit-linked notes on a quarterly basis, said Fitch. …
In an unusual move, a Washington, DC, think tank has publicly taken to task the official watchdog of the Federal Housing Finance Agency, finding a recent audit of the FHFA’s representation-and-warranty policy “incomplete.” The September report by the FHFA’s Inspector General concluded that the Finance Agency’s implementation of the rep-and-warrant framework was premature and resulted in “significant and unresolved operational risks” to Fannie Mae and Freddie Mac. An analysis by the Urban Institute found that the OIG’s conclusions were “incomplete and overstate the risk of the plan.”
The 12 Federal Home Loan Banks contributed some $300 million to affordable housing in 2013, according to a report by the Federal Housing Finance Agency. The report, issued last week, is part of the FHFA’s mandate to monitor and report annually on the FHLBanks’ support of their low-income housing and community development activities. In 2013, the Banks contributed approximately $297 million to the Affordable Housing Program, equal to 10 percent of their net earnings for the preceding year and up approximately 57 percent from 2012, noted the FHFA.
The Inspector General of the Federal Housing Finance Agency is among a growing list of official government watchdog agencies authorized to employ armed investigators when ferreting out waste, fraud and abuse, according to a recent report. The report issued by the Congressional Research Service listed some three dozen IGs that possess law enforcement authority, which legally empowers them to make arrests, seek warrants and carry firearms.
IG Recommends FHFA Upgrade Its Recordkeeping. The Federal Housing Finance Agency is in compliance with its recordkeeping procedures but the policy and infrastructure of its records management could do with an upgrade, concluded an evaluation by FHFA’s Inspector General last week. The IG said that the Finance Agency’s Division of Enterprise Regulation’s recordkeeping practices “have limitations that impede the efficient retrieval” of examination workpapers by agency staff and by IG auditors.
The use of Federal Home Loan Bank advances among bank and thrift members rose overall during the second quarter of 2014, according to the Inside Mortgage Finance Bank Mortgage Database. All of the nation’s banks and thrifts used a combined $437.7 billion in advances as of June 30, 2014, up 11.6 percent from the first quarter of 2014 and an 18.8 percent increase from the same period a year earlier.
Fannie Mae and Freddie Mac customer buybacks totaled $1.269 billion during the second quarter of 2014, according to an Inside Mortgage Trends analysis of Securities and Exchange Commission disclosures made by the two government-sponsored enterprises. Lender buybacks had declined to just $522.5 million in the first three months of 2014, but the repurchase volume jumped 142.8 percent in the second quarter. While Fannie and Freddie reported that they ... [Includes two data charts]
Credit Plus, a provider of credit verification and automated loan file review services, has announced a new software application that will help lenders of agency loans defend against potential losses, indemnifications and repurchase demands. The program, QC Review, enables lenders to run pre-closing quality assurance and post-closing quality-control tests to ensure that loans they originate meet Fannie Mae, Freddie Mac and FHA/VA requirements. QC Review’s comprehensive ...
Mortgage lenders continued to work through a huge pile of repurchase demands related to loans securitized by Fannie Mae and Freddie Mac before the housing market crash. The two government-sponsored enterprises reported a total of $1.269 billion of repurchases by sellers during the second quarter of 2014, according to a new analysis by Inside Mortgage Trends, an affiliated newsletter, of Securities and Exchange Commission filings by the two GSEs. That compared to just $522.5 million in repurchases during the first quarter of this year. As has been the case since the buyback issue mushroomed several years ago, most of the second-quarter repurchases focused...[Includes one data chart]
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