The development of the common securitization platform is in the works, but Treasury officials have a slightly different view of its implementation than does the Federal Housing Finance Agency. The FHFA said although progress on building the CSP is continuing, the agency is most focused on moving toward a single security. FHFA Director Mel Watt noted that both of the initiatives are “highly interrelated,” but he made it clear that a single security for the GSEs is a priority for Fannie Mae and Freddie Mac in 2015.
The Community Home Lenders Association last week said that more investigation is needed before the Federal Housing Finance Agency finalizes its proposed increase in capital and liquidity requirements for Fannie Mae and Freddie Mac servicers.
Pennsylvania’s Senator Pat Toomey said the Third Amendment to the terms of the GSE conservatorship is not fair to Fannie and Freddie investors. By claiming all future GSE profits, the Republican lawmaker said, the Treasury effectively eliminated all remaining shareholder value.
High GSE guarantee fees should be lowered because market risks have lessened significantly since the housing market crisis, according to the Community Mortgage Lenders of America. A 25 basis points adverse market fee was imposed when excessive levels of housing inventory and declining values were commonplace in many U.S. housing markets, said CMLA Chair Paulina McGrath.
Fannie Mae and Freddie Mac held $54 billion mortgages more than a year past due as of the end of the third quarter of 2014 and the Federal Housing and Finance Agency is counting on selling more nonperforming loans to the private sector.
In a March 11 report, the Office of Inspector General scrutinized Fannie Mae’s appointment of its chief audit executive. The report highlights “risks” associated with the October 2013 candidate selection. The CAE is responsible for directing Fannie’s internal audit department, a critical element of Fannie’s risk management controls, according to the report.
Jumbo mortgage production last year grew its share of total originations to its highest level since well before the financial collapse that launched the era of the “agency jumbo” loan. Mortgage lenders cranked out a total of $291.1 billion of home mortgages with loan balances exceeding the old conforming loan limit of $417,000. Like everything else in mortgages, jumbo production was down from 2013, by 22.4 percent. But total mortgage originations fell...[Includes three data charts]
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