The hedging effects of Fannie Mae and Freddie Mac – including instruments bought to protect the value of agency MBS – had different results in the third quarter as interest rates unexpectedly declined and stayed low for several weeks. Overall, Fannie booked $2.6 billion of negative charges against the value of its derivatives in the third quarter, while Freddie booked a much larger charge on its hedging activities: $4.2 billion. The differential did not pass without notice, especially since earlier this month Fannie reported a companywide profit of $2.0 billion and Freddie spilled red ink of $475 million. Even Federal Housing Finance Agency Director Mel Watt chimed in on Freddie’s loss, a rarity for the regulator who usually only issues statements when he has to.
FHFA Seeking Comments on Borrower Survey. The Federal Finance Housing Agency is seeking public comments concerning the information collection known as the “National Survey of Existing Mortgage Borrowers” (NSEMB). The NSEMB will be a periodic, voluntary survey of individuals who currently have a first mortgage loan secured by single-family residential property and will consist of about 80 to 85 questions. The comment period ends Jan. 11. SIFMA Supports Nomura’s Appeal in FHFA Case. The Securities Industry and Financial Markets Association recently filed an amicus brief in support of the defendants to reverse a case in which the Federal Housing Finance Agency argued that Nomura Holdings sold shoddy mortgage-backed securities to Fannie Mae and Freddie Mac.
An estimated 32.5 percent freefall in refi originations during 3Q had a much bigger impact on the conventional market than on government-insured lending.
A sense of urgency is starting to grip mortgage industry lobbyists and other officials as they try to push forward a wish list of legislative initiatives in the waning days of the first session of the 114th Congress. One fear is that if provisions they advocate aren’t enacted by year-end, presidential election year dynamics will keep anything substantive from being achieved in 2016. Ron Haynie, head of mortgage finance policy for the Independent Community Bankers of America ...
In a past audit, the OIG criticized the FHFA for lacking a “sufficient number of examiners.” In the new budget, the FHFA plans to increase its examinations head count to 275 from 248 in FY 2015.
This observer, requesting anonymity, said bluntly that the MBS “trade” is over, a summation that is bolstered in part by so many Wall Street firms either closing their trading desks or scaling back...
The CFPB Office of Inspector General plans to complete one audit, two evaluations and two reviews of the bureau during the first quarter of 2016, according to the OIG’s latest work plan, released early this week. First on the list is an audit of the CFPB’s space-planning activities, largely in response to the bureau’s renovation of its headquarters building. “We will determine whether the CFPB has established adequate controls to properly manage its space needs and whether the CFPB is complying with applicable requirements,” the OIG said. Next is an evaluation of the CFPB’s coordination with external organizations to implement targeted consumer education. “We are assessing the effectiveness of the CFPB’s coordination with external organizations to implement consumer education efforts ...
Consumer complaints about debt collectors appear to be improving somewhat, according to the latest analysis by Inside the CFPB of data submitted to the bureau. Gripes were down 9.4 percent during the third quarter, but off a barely perceptible 0.3 percent at the nine-month mark versus a year ago. Many of the top 50 companies ranked by number of complaints saw drops of double digits during the period ending Sept. 30, 2015, whereas a handful of companies saw consumer grumbling rise by triple digits year over year. In some instances, however, both dynamics occurred at the same company, the data show.Complaints about collection attempts were the leading consumer criticism, followed by disclosure verification and communication tactics. Supervisory Illustrations On...
Buyer Agents Report Delays in Closing, Thanks to TRID. One month into the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule, some real estate closings are already being affected, according to a recent survey conducted by the National Association of Exclusive Buyer Agents. The survey went out to brokers across the U.S. and nearly 20 percent said they are already seeing issues, mostly delays in closing. According to one respondent, “Lenders are almost all asking for 45 days to closing versus the previous 30 days.” Another respondent stated, “We’ve been advised to prepare for further delays until everyone has more experience with the new CFPB/TRID regulations.” “At NAEBA, we applaud the CFPB for its efforts ...
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