There is a clear need to reform the government-sponsored enterprise structure but how aggressively Congress will move on it and whether the next administration can provide much-needed leadership is unclear, according to housing and mortgage industry experts. Panelists in a forum hosted this week by the Progressive Policy Institute and the American Action Forum said they doubt Congress will be able to deal with the complex issue of GSE reform in 2013. Some among the panel of top economists and housing market experts said it may take a while before Congress can act on any reform legislation, much less in a bipartisan manner. Congress will not be...
It looks like the controversial risk-retention proposal wont be issued by federal regulators until sometime next year, as major components of the Dodd-Frank Act remain in limbo. I think much of the Dodd-Frank regulatory process is on hold until after the elections, and were unlikely to see decisions on most major issues until sometime in 2013, said Steven Abrahams, an analyst at Deutsche Bank Securities. The only process that seems to be rolling is the one run by the Consumer Financial Protection Bureau to define mortgage origination and servicing standards. As he sees it, the first half of next year will probably see...
Special servicers are set to receive more than $300.0 billion in distressed agency mortgages, according to industry analysts. The projections come after positive reviews of Fannie Maes controversial purchase and transfer of $73.0 billion in mortgage servicing rights from Bank of America in 2011. The Federal Housing Finance Agency and the FHFA Office of Inspector General each determined that Fannie paid a premium for BofAs mortgage servicing rights, but significant savings will be recognized due ...
Former Massachusetts Governor Mitt Romney aims to replace the Dodd-Frank Act and reform the government-sponsored enterprises, according to the latest housing policy statement from the Republican presidential candidate and Rep. Paul Ryan, R-WI, his vice presidential running mate. The Romney-Ryan plan will reduce the outsized role of the government and revitalize the private sectors role in the housing market to end the housing crisis and preserve the American dream of homeownership, according to ...
New temporary guidelines for approving FHA financing for condominium projects should boost sales of condo units across the country and improve current housing market conditions, according to industry stakeholders. The Department of Housing and Urban Development announced the guideline changes on Sept. 13 after extensive consultations with industry participants. Effective for all condo project approvals and recertifications, the revised guidelines will apply until Aug. 31, 2014, unless extended by the FHA. Stakeholders are confident that the changes, though temporary, will be ...
Fixed-rate mortgages comprised most of Augusts FHA production, which totaled $22.1 billion, up 13.2 percent from July and 37.9 percent from a year ago, according to an Inside FHA Lending analysis of FHA data. FRMs accounted for 98.9 percent of new loans with FHA insurance in August. In-house originations made up 79.6 percent of new endorsements while purchase loans accounted for 56.1 percent of FHA originations during the month. Wells Fargo is the only top FHA lender to exceed the billion-dollar mark. In fact, the bank reported $2.2 billion in new FHA originations, 76.0 percent of which were produced in-house. The purchase mortgage share of Wells total FHA originations was ... [2 charts]
The proposal by Fannie Maes and Freddie Macs regulator to levy extra guaranty fee charges on government-sponsored enterprise mortgages originated in five states that have unusually slow foreclosure timelines not only adds to the problems faced by small lenders but its also less than clear that it would be an effective part of the solution, say industry executives. If implemented as proposed, the Federal Housing Finance Agency would target five states Connecticut, Florida, Illinois, New Jersey and New York for an additional, one-shot guaranty fee of between 15 and 30 basis points that would take effect in 2013. The size of the fee adjustments are intended...
Fannie Mae and Freddie Mac would levy extra guaranty fee charges on mortgages securing property in five states to account for the increased cost of foreclosures in those states under a proposal outlined this week by the Federal Housing Finance Agency. The FHFA proposes to target five states Connecticut, Florida, Illinois, New Jersey and New York for an additional, one-shot guaranty fee ranging from 15 basis points to 30 bps. The size of the fee adjustments is intended to reflect the disparity in costs, as compared to the national average, explained the FHFA. The five states were...
Fannie Maes High Touch Servicing Program, an initiative that utilizes specialty servicers to deal with at-risk borrowers to help reduce the number of defaults, is basically sound, but there are some issues with controls and cost savings, a new inspector generals report found. An internal audit conducted by Fannie Mae raised questions about the controls surrounding the High Touch Servicing Program, as well as the likelihood that it would achieve the projected savings, the Federal Housing Finance Agency Office of Inspector General said in a report issued this week. Fannie Mae relied...
The most pressing concern of the Federal Housing Finance Agencys efforts to develop a post-Fannie Mae and Freddie Mac secondary mortgage market infrastructure is engineering a state-of-the-art securitization platform that could be used by either company, as well as private issuers, the agency head noted during a speech last week. Speaking at the National Association of Federal Credit Unions Congressional Caucus, FHFA Acting Director Edward DeMarco said the agencys immediate priority is a single, common platform, not a single government-sponsored enterprise security. A cornerstone of what we are seeking to build is...