Freddie Mac Sells $130 Million of NPLs. Last week, Freddie Mac announced it auctioned 487 deeply delinquent loans serviced by JPMorgan Chase Bank from its portfolio on May 31, 2016. The loans have been delinquent for approximately three and half years on average and the transaction is expected to settle in August 2016. Mortgages that were previously modified and subsequently became delinquent comprise ... [Includes two briefs]
The banking industry still hasn’t touched bottom in its years-long retreat from the mortgage servicing rights business. Banks and thrifts reported a total of $4.001 trillion of single-family mortgage servicing for other investors, most commonly mortgage-backed securities trusts, as of the end of March. That was down some $52.9 billion from the previous quarter, a 1.3 percent decline, according to a new analysis of call-report data by Inside Mortgage Trends ... [Includes one data chart]
Watt has given no indication that he wants to wade into this mess and has repeatedly stressed that it’s up to Congress to figure out what to do with Fannie and Freddie.
Government-sponsored enterprise Fannie Mae recently issued some additional guidance to its mortgage lender partners about self-reporting deficiencies in complying with the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. In a new selling-guide announcement, Fannie said, “Lenders are not obligated to self-report any matters related to possible TRID non-compliance, regardless of the number of loans involved, except in two limited circumstances where a repurchase demand is an authorized remedy.” The first circumstance is...
Portfolio lenders would get an expanded safe harbor from litigation under the qualified mortgage standard in the Consumer Financial Protection Bureau’s ability-to-repay rule under a proposed Republican replacement of the controversial Dodd-Frank Act. “Our plan ... provides critically needed mortgage relief with reforms that let community banks back into the mortgage business and ensure qualified borrowers can purchase a home while preserving prudent underwriting standards,” said House Financial Services Committee Chairman Jeb Hensarling, R-TX, in a speech at the Economic Club of New York on Tuesday morning. “Changes include an ability-to-repay safe harbor for loans held on portfolio, ensuring the availability of mortgage credit for manufactured homes, fixing the way points and fees are calculated, and exempting small servicers from escrow requirements.” The proposal, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, includes...
A growing number of mortgage-industry groups, housing interests and Democrats on Capitol Hill are urging the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to begin to restore their capital bases, while others urge the FHFA to leave the matter to Congress. The Mortgage Bankers Association joined with four other groups this week in urging the FHFA to maintain the current state of conservatorship for the two government-sponsored enterprises and let Congress tackle broad mortgage-finance reform. “Absent reform, we run the risk of continuing to kick the can down the road without ensuring ongoing access to mortgage credit for millions of future homeowners,” the groups said. Joining the MBA were...
MBA said the average pre-tax production profit was 33 basis points in the first quarter of 2016, compared to an average net production profit of 22 bps in 4Q15.
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