Citing its goal and the White House’s stated preference to reduce the market presence of the government-sponsored enterprises, the Federal Housing Finance Agency this week proposed setting “loan-purchase limits” for Fannie Mae and Freddie Mac. The FHFA said it could use its authority as conservator to set loan-purchase limits about 4.0 percent below the statutory GSE loan limits it established for 2014. Instead of a national floor of $417,000, the top single-unit mortgage Fannie and Freddie would buy in markets that are not designated high cost would be $400,000. The maximum purchase limit in high-cost markets would be $600,000, rather than $625,500, and all the “tweener” high-cost limits would similarly be reduced by 4.0 percent. “The loan purchase limits … would modestly reduce...

Limited examination resources and staff turnover at the Federal Housing Finance Agency remain a concern, according to the FHFA's Office of Inspector General.

According to Inside FHA Lending, the top three VA lenders during the first nine months of 2013 were: Wells Fargo, USAA, and Freedom Mortgage.

The Mortgage Bankers Association and other trade groups are hopping mad at FHFA's latest December surprise: higher LLPAs.

As a technical matter, Edward DeMarco still heads FHFA and the agency is once again testing the waters for lower Fannie Mae/Freddie Mac loan limits.

Among other things, the FHFA wants to know if six-months is adequate time for lenders and servicers to make the changes to their technology systems.

Compared to June 30, MBS investments by REITs are off 6 percent. Moreover, the industry has lost nearly all of the huge volume of MBS that were acquired in early 2012.

Wells, Bank of America and JPMorgan Chase accounted for a combined 44.7 percent of the $517.75 billion in bank HELOCs outstanding at the end of the third quarter.

While Fannie Mae and Freddie Mac stress their avoidance of new subprime and Alt A mortgages, nonprime mortgages continue to account for a small portion of the government-sponsored enterprises’ new business. According to an analysis by Inside Nonconforming Markets, Fannie’s portfolio of guaranteed subprime mortgages is declining much more rapidly than Freddie’s. Fannie guaranteed $4.30 billion in subprime mortgages as of the end of the third quarter of 2013, down 17.3 percent ... [Includes one data chart]

Higher guaranty fees at the government-sponsored enterprises and lower loan limits for FHA mortgages in 2014 aren’t expected to prompt an increase in the issuance of non-agency mortgage-backed securities because the economics for securitization remain unattractive. Industry analysts are also concerned that the Senate’s confirmation of Rep. Mel Watt, D-NC, as director of the Federal Housing Finance Agency could slow efforts to shift business from Fannie Mae and Freddie Mac to the non-agency market. The FHFA announced ...