More than two years after being placed into government conservatorship, Fannie Mae and Freddie Mac remain “critical supervisory concerns” as “key challenges” at both government-sponsored enterprises continue to compel the GSEs to rely on federal funding to stay afloat, according to the Federal Housing Finance Agency. FHFA’s annual report to Congress this week noted losses from mortgages originated from 2005 through 2008, as well as forecasted losses from that same pre-conservatorship period, remain a continuing source of...
The Federal Housing Finance Agency has issued an interim final regulation with a request for comments on changes to its existing Freedom of Information Act regulations. In its notice, published in the May 23 Federal Register, the FHFA said it is updating its existing FOIA regulations to include the FHFA Office of Inspector General. The FHFA-OIG did not yet exist when the Finance Agency’s original FOIA regulations were issued in 2009.
In light of Fannie Mae and Freddie Mac’s federal conservatorship status and the resulting control by the Treasury Department, the two GSEs are “effectively part of the government” and their operations should be reflected in the federal budget, according to the Congressional Budget Office.CBO has concluded that using a fair-value approach to estimate Fannie and Freddie’s subsidy costs is the best way to give Congress and taxpayers the most accurate accounting information.
Fannie Mae and Freddie Mac’s home retention activity declined for the most part during the first quarter, according to the latest Federal Housing Finance Agency’s Foreclosure Prevention and Refinance Report.Total home retention efforts dropped to 143,977 during the first three months of the year, down 20 percent from the fourth quarter, while loan modifications in the period also declined to 86,201, down 28 percent.
The sponsor of legislation that would make Fannie Mae and Freddie Mac subject to the Freedom of Information Act’s government transparency provisions told Inside The GSEs this week he is optimistic his bill has a “real fighting chance” of passage in the House.Rep. Jason Chaffetz, R-UT, said his bill, H.R. 463, The Fannie Mae and Freddie Mac Transparency Act of 2011, has “picked up momentum” following a hearing two weeks ago, and the headlines it produced, in which the GSEs’ regulator panned the bill as potentially harmful to Fannie and Freddie.
Consumer advocate Ralph Nader is calling on the Treasury Department’s Inspector General, as well as the Chairmen of the Senate Banking and the House Financial Services Committees to conduct an investigation and hold hearings about “misleading statements” made...
The increasing return of private capital to the mortgage market that is expected to materialize post Dodd-Frank will provide plenty of opportunity for mortgage real estate investment trusts, with those investing in agency MBS likely to face a particularly low-risk environment, some leading financial services analysts suggest. gWe believe that the increased privatization of the mortgage market combined with the risk retention requirements of the equalified residential mortgagef will create...
Don’t hold your breath waiting for a legislative remedy in Congress to reform and/or replace Fannie Mae and Freddie Mac. The expectation on the Hill and throughout the industry is that meaningful action on GSE reform won’t occur until 2013 at the earliest, industry sources tell Inside The GSEs.
The use of Federal Home Loan Bank advances among their bank and thrift members fell overall during both the first quarter of 2011 and on a yearly basis, with two of the three largest users showing a drop-off larger than the overall industry’s year-over-year rate of decline, according to the Inside Mortgage Finance Bank Mortgage Database.
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