Freddie Mac announced this week that it has tapped a former JPMorgan Chase executive to serve as the GSEs new head lawyer. William McDavid will start work next week as Freddies executive vice president, general counsel and corporate secretary. He replaces Alicia Myara, who has served as the GSEs interim general counsel since November 2011. McDavid was co-general counsel for Chase from 2004 until he retired in 2006 and previously served solo as general counsel for several Chase predecessors going back to Chemical Bank in 1988.
Mortgages sold to Fannie Mae and Freddie Mac are increasingly coming from lenders retail production channels, according to a new analysis by Inside Mortgage Trends. In the second quarter of 2012, 58.1 percent of single-family loans securitized by the government-sponsored enterprises were retail originations, up from 52.9 percent in the first quarter. Broker originations dropped from 10.8 percent of GSE business to 9.0 percent, and the correspondent share slipped from 36.3 percent to 32.9 percent. After accounting for a whopping 83.2 percent of Fannie/Freddie business in the first quarter ...
The Federal Housing Finance Agency said last week it is ready to take its initiative to dispose of GSE and government-held real estate-owned properties to the next level, but a California House Republican is demanding the pilot program skip over his state. The FHFA announced it has chosen winning bidders in its REO pilot venture with the transactions expected to close early in the third quarter. Although the winning bidders werent publicly identified by the FHFA, the agency has declared this first round to be a success and is planning the next round of sales, according to FHFA Acting Director Edward DeMarco.
Despite the full implementation of the recently expanded Home Affordable Refinance Program in June and a refi boost that followed, Fannie Maes and Freddie Macs new volume declined during the second quarter of 2012, according to a new Inside The GSEs analysis. Fannie and Freddie issued $273.95 billion in single-family mortgage backed securities during the second quarter, a 10.2 percent drop from the first three months of the year. Thanks to the huge $305.21 billion of GSE business during the first quarter, the market was still 39.3 percent ahead of the pace set during the first half of 2011.
In response to the Federal Housing Finance Agencys request for comments on its recent strate-gic plan, the American Securitization Forum put out a white paper this week spelling out the mechanics and potential benefits of a blueprint to transition to a single agency security that could be issued by Fannie Mae and Freddie Mac. Implemented correctly, a single agency security could benefit all participants in the mortgage market, including borrowers, originators, investors and the taxpayer, said ASF Executive Director Tom Deutsch. Current trading markets for Fannie MBS and Freddie PCs are...
The Federal Housing Finance Agency should seriously reassess its regulations which permit the 12 Federal Home Loan Banks to build large unsecured, credit portfolios that may produce unreasonable risk, according to an audit by the agencys official watchdog. The FHFAs Office of Inspector General report issued last week noted that the FHLBanks substantially increased their unsecured lending to foreign financial institutions, particularly in Europe, during 2010 and 2011. Unsecured credit extensions to European institutions swelled from $66 billion at the end of 2008 to more than $120 billion by early 2011
The Department of Housing and Urban Development said it has received $1.2 billion in recent settlements with large mortgage lenders and servicers but HUDs internal watchdog, which did much of the legwork in the investigations, reveals a much smaller amount. According to recent audit reports published by HUDs Office of the Inspector General, only Bank of America and Flagstar Bank have made payments under settlement agreements with HUD and the Department of Justice to resolve government claims. In separate memos to HUDs Office of General Counsel last month, Kim Randall, director of the HUD OIG Civil Fraud Division, sought clearance to ...
Despite a late surge in refinance business for seriously underwater home mortgages, new business volume at Fannie Mae and Freddie Mac declined by 10.2 percent during the second quarter, according to a new Inside Mortgage Finance analysis and ranking. The two government-sponsored enterprises securitized a total of $273.95 billion of conventional single-family mortgages during the second quarter. Thanks to the huge $305.21 billion of GSE business recorded during the first three months of 2012, the market was still 39.3 percent ahead of the pace set during the first half of last year. Refinance activity...
In an unusual move, the federal judge overseeing the Federal Housing Finance Agencys massive legal action against many of the nations biggest MBS issuers has granted a defendant the right to appeal her denial of its motion to dismiss. Last week, Judge Denise Cote of the U.S. District Court for the Southern District of New York granted permission to UBS Americas to go over her head to the U.S. Court of Appeals for the Second Circuit. UBS hopes the appellate court will reverse...
The gap between the performance and liquidity of Fannie Mae and Freddie Mac MBS continues to widen and a proposal to make their securities interchangeable is gaining traction among stakeholders. But unless a workable valuation solution is found, bridging that gap between the two government-sponsored enterprises will remain nearly impossible, said the Mortgage Bankers Association. Pricing differences between Fannie and Freddie have grown...