The Federal Housing Finance Agency is pondering a proposed principal-paydown plan to assist underwater homeowners holding Fannie Mae or Freddie Mac mortgages who have filed for Chapter 13 bankruptcy protection.The plan based on a proposal pitched to the FHFA in November by Rep. Zoe Lofgren, D-CA, and the National Association of Consumer Bankruptcy Attorneys would lower a borrowers mortgage payments under a five-year bankruptcy repayment schedule.An FHFA spokesman confirmed to Inside The GSEs this week that the NACBA proposal is under discussion by the Finance Agency but offered no additional details.
Fannie Mae and Freddie Mac issued $261.59 billion in single-family mortgage-backed securities during the fourth quarter of 2011, a booming 47.6 percent improvement from a modest third quarter that followed two straight quarterly declines during the first six months of 2011.The recently completed October-December cycle represented the highest quarterly production level of the year, but it still came up 21.2 percent short of the volume generated during the fourth quarter of 2010.For the year, GSE single-family securitizations were down 12.7 percent from the volume generated during 2010.
Servicers will be able to approve unemployed borrowers with Fannie Mae and Freddie Mac owned- or guaranteed-loans for six months of forbearance without prior approval from the GSEs under new policies announced last week. Freddie’s new forbearance option, rolled out at the direction of the Federal Housing Finance Agency, takes effect Feb. 1 and makes unemployed borrowers potentially eligible for up to 12 months of forbearance.
The Federal Housing Finance Agency has issued a final rule making a number of minor but important tweaks to its mortgage reporting requirements. The changes make way for data reporting of housing goals for the 12 Federal Home Loan Banks.On Dec. 21, the Finance Agency published in the Federal Register new reporting requirements governing FHLBank housing goals to make those requirements consistent with other data reporting requirements currently applicable to the Banks.The FHFAs final rule is in keeping with the Housing and Economic Recovery Act of 2008 which amended the Federal Home Loan Bank Act by requiring the director to establish housing goals with respect to the FHLBanks purchase of mortgages.
Despite some commendable improvements in its monitoring of the 12 Federal Home Loan Banks, the Federal Housing Finance Agencys failure to establish policies, systems and documentation standards threatens to undermine the FHFAs oversight of troubled FHLBanks, according to a new report by the FHFAs overseer.The FHFA Office of Inspector Generals first report of 2012 picks right up where it left off last year in the OIGs persistent criticism of the FHFAs oversight of the GSEs.Since 2008, four FHLBanks Boston, Chicago, Pittsburgh and Seattle have faced significant financial and operational difficulties, primarily due to their investments in high-risk mortgage-backed securities. In 2009 and 2010, the four Banks posted losses of nearly $2.0 billion on non-agency MBS investments, the FHFA-OIG noted.
In a major shake-up of the executive suite, Fannie Mae chief executive Michael Williams announced his resignation this week, effective as soon as the companys board chooses a successor.Williams resignation follows last Octobers announcement by Freddie Mac CEO Charles Haldeman that he would step down from the company sometime in 2012.Williams spent 21 years at Fannie in a variety of capacities, most notably as the executive responsible for overseeing the companys financial restatements, and accounting and control reforms pre-conservatorship and as chief operating officer. In April 2009, he was named CEO.
Reducing monthly payments to a sustainable level for distressed borrowers who are significantly underwater on their mortgages may require principal reductions, in addition to interest rate concessions and loan term extensions, but pursuing such a policy is not without significant drawbacks, according to a Federal Reserve analysis. In a white paper sent to the banking committees on Capitol Hill last week, the Fed dove into the controversial issue of whether Fannie Mae and Freddie Mac should be taking more aggressive steps like principal reduction to help distressed borrowers and shore up...
The Securities and Exchange Commission has adopted a modified policy that will require defendants in settlement agreements to admit to wrongdoing if they have already pled guilty in parallel criminal cases. Following a review by senior enforcement staff that began this spring and separate discussions with the commissioners over the last several months, last week we modified our settlement language for cases involving criminal convictions where a defendant has admitted violations of the criminal law, said SEC Enforcement Director Robert Khuzami.The new policy does not require admissions...
Agency single-family MBS issuance ended 2011 with a bang as the three agencies jostled for market share, a new Inside MBS & ABS analysis reveals. Ginnie Mae and Freddie Mac ended the year with nearly identical total issuance, with Freddie seeing a slightly larger decline from 2010 levels. Fannie Mae, however, recorded a much smaller drop in total production last year, boosting its share of the agency market. Freddie could not keep pace with Fannies surging MBS issuance volume during the fourth quarter. In December, Freddie accounted for just 22.7 percent of combined production by the two...
Refinance activity has represented more than half of home loan originations every year since 2006, and housing sales have been in a slump for the past five years. But individual mortgage lenders continue to carve out their own production strategies, including in some cases a devotion to the smaller purchase-mortgage sector. A new Inside Mortgage Finance analysis of loans originated under the four major agency mortgage programs through the first nine months of 2011 shows that many of the top overall producers beefed up their market share by aggressively originating...(Includes one data chart)