The Federal Housing Finance Agency is feeling some serious pushback from lawmakers, industry groups and even homeowners over its plan to impose a guaranty fee hike on several slow foreclosure states. The FHFA proposed to target five states – Connecticut, Florida, Illinois, New Jersey and New York – for an additional, one-shot g-fee of between 15 and 30 basis points in 2013. The fees, the FHFA contends, are intended to allow Fannie Mae and Freddie Mac to recover costs associated with foreclosures. The five states singled out are all judicial states where it is necessary to obtain court approval before foreclosure is completed. The National Association of Federal Credit Unions urged...

Wholesale mortgage production channels – and correspondent originations programs in particular – were key factors in the surge in loan originations during the third quarter of 2012, according to a new Inside Mortgage Finance ranking and analysis. Wholesale lending increased by 11.4 percent from the second quarter to the third, outgaining a 7.7 percent increase in retail production. And with most of the gain coming in correspondent production, it’s clear that the influx of new lenders in that segment, combined with Wells Fargo’s growing presence, has more than made up for the withdrawal of a handful of major lenders of the past. Correspondent originations rose...[Includes four data charts]

The Federal Housing Finance Agency should go back and make additional tweaks to the revised representation and warranty framework for Fannie Mae and Freddie Mac to address significant industry concerns while also enabling greater industry input for future government-sponsored enterprise guidelines prior to issuance, according to the Mortgage Bankers Association. In a letter dispatched to the agency earlier this month, the MBA lauded the FHFA for its efforts through the framework to create clarity but said further changes need to be made to avoid adding to lenders’ confusion rather than alleviating it. “MBA is concerned...

The revised “HARP 3.0” proposal pending in the Senate would likely have only a limited impact on boosting Fannie Mae and Freddie Mac refinance activity, according to a report released by RBS Securities last week. Senate Democrats have proposed legislation designed to expand the Home Affordable Refinance Program for underwater Fannie/Freddie borrowers, although most observers see little chance of it being enacted in the lame duck session of Congress. RBS said...

Some real estate agents are refusing to accept offers from buyers using FHA financing prompting minority rights advocates to question whether racial discrimination is causing the problem or some other factors. While illegal flipping and steering that targeted minority communities appear to have abated, bias against borrowers using FHA financing continues in the real estate market, according to Janis Bowdler, director of the Wealth-Building Policy project of the National Council of La Raza. Bowdler expressed her concern during a recent panel discussion of an FHA Working Paper on the FHA’s role in the housing finance market hosted by the Urban Institute. She said there have been reports of ...

The Department of Housing and Urban Development has announced changes to existing loss mitigation options to reduce the number of claims against the FHA Mutual Mortgage Insurance Fund.The changes will benefit qualified, distressed FHA borrowers, who will be able to qualify for FHA loss mitigation interventions and get more help than what was allowed under previous guidelines. HUD has issued a mortgagee letter to amend existing FHA Home Affordable Modification Program guidelines, the definition of “special forbearance,” and loss mitigation-priority guidelines. Specifically, HUD eliminated the ...

Refinancing of underwater and nearly submerged Fannie Mae and Freddie Mac mortgages continued to spur business at the government-sponsored enterprises during the third quarter. During the third quarter of 2012, the two GSEs securitized a total of $66.91 billion of refinance mortgages with loan-to-value ratios exceeding 85 percent, a proxy for business originated under the Home Affordable Refinance Program. That was up 13.3 percent from the second quarter, according to an Inside MBS & ABS analysis of loan-level securitization data. Official HARP data are reported...[Includes two data charts]

Recent procedural rulings in Federal Housing Finance Agency lawsuits against non-agency MBS issuers and underwriters again favored the conservator of the government-sponsored enterprises, prompting some to speculate that issuers will move to settle the lawsuits. Meanwhile, a number of other MBS-related litigation developments continue to pile up. U.S. District Judge Denise Cote is overseeing 16 cases filed by the FHFA against non-agency MBS issuers and underwriters regarding non-agency MBS purchased by the GSEs between 2005 and 2007. The FHFA alleges misrepresentations by the issuers and underwriters on the MBS. Last week, Cote dismissed...

Look for the 113th Congress and to a lesser extent a second-term Obama administration to become more engaged in seeking a resolution to Fannie Mae’s and Freddie Mac’s future role in the mortgage market, although implementation of such a solution remains years away, say industry observers. In the short term, following a hard-fought 2012 election that left the balance of power and the political party makeup unchanged, official Washington will be primarily focused on averting the looming “fiscal cliff” of tax hikes and automatic spending cuts.

Speculation abounds across Capitol Hill and within mortgage industry circles about how long the “temporary” head of the Federal Housing Finance Agency will remain at his post following the post-election shake out. However, it remains to be seen whether President Obama, flush from re-election, will seek a replacement for FHFA Acting Director Edward DeMarco, either by nominating a permanent agency director to the Senate or by the more politically problematic recess appointment.