DC Circuit Latest Court to Reject GSE Tax Collection Effort by Municipalities. A three-judge panel of the DC Circuit Court recently upheld a lower court ruling against Kay County in Oklahoma, which has been trying to collect real estate transfer taxes from Fannie Mae and Freddie Mac. In rejecting Kay County’s bid to get the GSEs to pay a 1 percent “documentary stamp tax,” the DC court’s finding became the latest in a growing number of…
Fannie Mae and Freddie Mac in May resumed a more than year-long streak of declines with monthly decreases in the volume of single-family mortgages securitized by the two GSEs, according to a new Inside The GSEs analysis. Fannie and Freddie issued $44.8 billion in single-family mortgage-backed securities in May, a 1.3 percent decrease from the previous month. April’s $45.4 billion issuance proved to be just a brief reversal to the longer trend.
Fannie Mae and Freddie Mac mortgage-backed securities remained the preferred investment choice of the 12 Federal Home Loan Banks during the first quarter of 2014, with a very slight decline from the previous quarter, according to a new analysis and ranking by Inside The GSEs based on data from the Federal Housing Finance Agency. Meanwhile, Ginnie Mae securities posted an increase within the FHLBank system during the first three months of the year.
Although Fannie Mae and Freddie Mac have, for years, had minimum capital requirements for mortgage companies that want to become seller/servicers, the Federal Housing Finance Agency and state regulators are now exploring codifying a capital minimum for nonbanks, according to industry officials and state regulators. During a webinar this week sponsored by Inside Mortgage Finance, participants highlighted the “hot topic” nature of capital requirements for nonbanks. John Prendergast, vice president of non-depository supervision for the Conference of State Bank Supervisors, indicated that capital requirements for nonbanks are more of a matter of when, not if. However, participants who have been tracking the matter caution...
The Federal Housing Finance Agency will “assess the merits of litigation” against Fannie Mae’s and Freddie Mac’s servicers and lender-placed insurance providers to recover premium overpayments by the government-sponsored enterprises following a pointed suggestion to do so by the agency’s official watchdog. A new audit released by the FHFA’s Inspector General found that Fannie and Freddie could have overpaid about $158 million in 2012 alone for lender-placed or “force-placed” insurance policies. The IG said it calculated its $158 million figure as the difference between the amount the GSEs actually paid in premiums – $360 million – and a “reasonable” price for such coverage – $202 million. “Our retrospective analysis suggests...
Regulatory scrutiny of the servicing sector appears unlikely to decrease anytime soon as officials with the Consumer Financial Protection Bureau along with state regulators note that regulation of servicing is a top priority. During a webinar this week hosted by Inside Mortgage Finance, Ann Thompson, a senior analyst in the CFPB’s Office of Supervision Policy, said the federal regulator conducts a risk-based analysis of issues affecting consumers. “Mortgage-related issues are presenting...
There’s still more than a year left before the Consumer Financial Protection Bureau’s integrated mortgage disclosure final rule takes effect. But top industry representatives are urging lenders to begin preparations now, if they haven’t already done so, because of the depth and breadth of the new regulation – and the central role it will play in the origination process. During a general session of the American Bankers Association’s annual regulatory compliance conference, held in New Orleans earlier this month, Rod Alba, senior regulatory counsel for the trade group, said that the CFPB’s TILA/RESPA integrated disclosure – known as TRID – is a massive project. “We cannot take it lightly,” Alba said. He also emphasized...
Jumbos for borrowers with strong credit profiles present banks with limited risks – particularly adjustable-rate mortgages – and the loans offer lucrative opportunities to cross-sell other products.
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