Fannie Mae, Freddie Mac and their government conservator are all calling on the Consumer Financial Protection Bureau to amend proposed changes to its mortgage servicing rule because certain provisions would inhibit similar servicing goals put forth by the Federal Housing Finance Agency. In a comment letter, the FHFA said its servicing alignment initiative has pushed for improved practices that are similar to the goals of the CFPB rule, but “several provisions in the recently proposed amendments would actually make those goals more difficult to achieve.” The four areas of the CFPB proposal that are especially important cover...
Policymakers should replace Fannie Mae and Freddie Mac with mandatory mortgage insurance and a catastrophic guaranty from the federal government, according to a new paper from Promontory Financial Group, a consulting firm. The paper was prepared at the request of Genworth Financial and Promontory said the mortgage insurance firm didn’t influence the recommendations. Under Promontory’s proposal to reform the government-sponsored enterprises, private entities would both issue and guarantee their own mortgage-backed securities, private MI would be required on a loan-level basis for mortgages securitized in the new system, and a government agency would provide a back-up guaranty on the MBS payable only upon default by the MBS issuer. “Our proposal is...
The Federal Housing Finance Agency withdrew a proposed rule it was forced to issue regarding Property Assessed Clean Energy programs after prevailing in court.
The Senate won't vote on the nomination of Rep. Mel Watt, D-NC, for director of the Federal Housing Finance Agency, before leaving for its August recess.
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