Fannie Mae and Freddie Mac this week reported a combined $15.1 billion in net income during the second quarter of 2013, as the two government-sponsored enterprises came closer to having paid the government as much in dividends as they have taken in bailout funds. Fannie reported $10.1 billion in net income, the company’s sixth consecutive quarterly profit. During the first quarter, Fannie posted $58.7 billion in net income, boosted by its release of $50.6 billion in deferred tax assets. Under the revised conservatorship arrangement, any GSE net worth exceeding $3.0 billion is forked...

The three government MBS agencies issued $144.26 billion of single-family MBS last month, down 3 percent from June’s level. It was the lowest monthly production level so far in 2013.

Industry reaction to Obama’s speech was generally favorable, particularly as it related to his call for continued, unfettered access to the 30-year FRM.

Stated-income loans are being offered at 5.49 percent as long as the borrower puts down 20 percent. Meanwhile, Walter wants to keep its contract terms with Fannie Mae secret.

President Obama this week endorsed a reduction in the FHA’s high-cost loan limits and called on the Federal Housing Finance Agency and the Department of Housing and Urban Development to consider further decreases to reduce conforming loan limits. The proposal was included in a fact sheet that accompanied Obama’s speech this week on housing. The FHA’s high-cost loan limits are scheduled to be reduced at the end of this year. “HUD and FHFA should closely examine using their existing authorities to reduce ...

The government-sponsored enterprises’ holdings of vintage nonprime mortgage-backed securities declined in the second quarter of 2013 due to sales as well as runoff. Fannie Mae and Freddie Mac are working toward the goal set by the Federal Housing Finance Agency to sell 5.0 percent of the non-agency and less liquid mortgage-related assets they held in their retained portfolios at the end of 2012. Combined, the government-sponsored enterprises held $96.48 billion in nonprime MBS as of ... [Includes one data chart]

Redwood Trust said it expects to hit its goal of acquiring $8 billion in non-agency jumbos in 2013, “but it won’t be easy" company officials said.

In other words, if Fannie keeps earning money at this rate, it could repay its “debt” to Treasury by year-end or the first quarter of next year.

Specifically, Sen. Warren says she wants information on seller/servicers that were granted price breaks and the “basis” for “granting more favorable terms.”

Industry observers are reacting favorably to what is known about a recently announced agreement between Fannie Mae and the newest entrant to the mortgage insurance space to take up a risk-transfer transaction with the government-sponsored enterprise. In a agreement finalized July 15 but announced just last week, National Mortgage Insurance Corp. said it came out on top of a formal bidding process with Fannie to insure a pool of approximately $5.0 billion in mortgages as the GSE looks to expand its risk sharing with private entities. “Fannie Mae selected...