The Federal Housing Finance Agency proposed this week to establish “loan-purchase” limits for the GSEs which won’t occur until next October at the earliest. The regulator and conservator of Fannie Mae and Freddie Mac is seeking comments regarding loan-purchase limits 4.0 percent below the statutory GSE loan limits. The FHFA said it is considering a $600,000 purchase limit in the highest-cost markets and a purchase limit of $400,000 in non high-cost markets.

Fannie, Freddie Suspend Holiday Evictions. In what has become an annual tradition, Fannie Mae and Freddie Mac each announced last week that all foreclosure-related evictions of single-family and two-to-four unit properties are suspended until after the New Year.“At this time of year, we want to bring some relief to families who confronted financial difficulties and went through foreclosure,” said Chris Bowden, Freddie’s senior vice president of REO. The GSEs are also encouraging struggling homeowners to contact their servicers for help to avoid foreclosure. “We encourage any homeowner who is having difficulty making their mortgage payment to reach out for help right away,” added Fannie Chief Operating Officer Terry Edwards.

A Manhattan federal judge last week approved a proposed settlement by bankrupt Residential Capital with the Federal Housing Finance Agency to resolve billions of dollars in claims tied to toxic MBS sold to Fannie Mae and Freddie Mac during the run-up to the financial crisis. Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York approved the agreement, which is tied to a settlement the FHFA reached with Ally Financial, ResCap’s former parent, in late October. Under the agreement, the FHFA will receive...

A Manhattan federal court this week approved a proposed settlement between Residential Capital and the Federal Housing Finance Agency that both clears the way for the former conduit to exit bankruptcy and brings the FHFA one step closer to completing its massive legal action against some of the nation’s top financial institutions.Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York approved the agreement, which is tied to a settlement the FHFA reached with Ally Financial, ResCap’s former parent, in late October.

Late last week, the CFPB released updates to its exam procedures in connection with the new mortgage regulations issued in January 2013 and amended through Oct. 15, 2013. The updates offer financial institutions and other industry participants valuable guidance on how the bureau will conduct examinations for compliance with the Truth in Lending Act and the Real Estate Settlement Procedures Act, the agency said. The bureau updated the supervision manual to reflect the renumbering of the consumer financial protection regulations for...

The Securities and Exchange Commission is preparing to take more cases to trial in lieu of settling, according to Mary Jo White, chair of the SEC, who prompted a change in the agency’s protocol for settling cases with no admission or denial of guilt. “In this age of diminishing trials, we at the SEC may be about to reverse the trend a bit,” White said in a speech late last week. Shortly after White took over as chair of the SEC, she said...

The successor regulator to the Federal Housing Finance Agency should be immediately infused with the FHFA’s talent and resources upon inception rather than a potentially “confusing and inefficient “ five-year transition period where past and future regulators would co-exist, an FHFA official told lawmakers this week. Testifying before the Senate Banking, Housing and Urban Affairs Committee, FHFA General Counsel Alfred Pollard told senators that moving all employees to the new agency – or possibly renaming and empowering the FHFA as the proposed Federal Mortgage Insurance Corp. – would avoid a potential brain drain.

The Federal Housing Finance Agency should direct Fannie Mae to strengthen its control over the GSE’s short sales, and review Fannie’s Streamlined Documentation Program to determine whether it should be available to borrowers seeking approval to short sell non-owner-occupied properties, according to the agency’s official watchdog. The audit released this week by the FHFA’s Office of Inspector General was based on a review of 41 short-sale transactions involving multiple Fannie servicers.

Freddie Launches Broker Training Program to Boost REO Sales. Freddie Mac announced this week it has launched a new program to train real estate agents how to better move real estate-owned homes through its HomeSteps sales unit. Freddie’s new Certified Community Stabilization Expert program is an eight-hour online course developed by San Diego-based Community Asset Solutions to teach the latest lessons for selling REO homes, according to Chris Bowden, senior vice president, HomeSteps. The CCSE program curriculum is designed to help real estate professionals “work more effectively with nonprofits and local governments, take advantage of public initiatives for maintaining properties and create new outreach efforts for owner-occupant buyers, especially low- and moderate-income homebuyers,” said Bowden.

Recapitalization of RMIC Will Pave the Way for a Return to MI Market. Old Republic International (ORI) is planning to recapitalize its mortgage guaranty subsidiary, RMIC Companies, Inc., which could resume underwriting in early 2014. Old Republic plans to contribute up to $50 million of new capital and raise additional funds, which would allow RMIC and its subsidiaries to fully support existing policies, pay off deferred claim obligations, exit state supervision, and resume underwriting new business early next year. The cash infusion would require ...