The suit was filed in December 2012 on behalf of hundreds of thousands of investors who bought stock in an offering by Fannie in May 2008, four months before the GSE was taken over by the government.
Manufactured housing as a low-cost housing option is already in a serious slump, but regulations set to take effect early next year would push it to the brink of extinction unless offsetting legislation is passed, warned an industry trade group. Effective in January 2014, new regulations implementing provisions in the Dodd-Frank Act will significantly limit the ability of low-income borrowers to obtain mortgage financing needed to purchase a manufactured home, according to the Manufactured Housing Institute ...
Given that regulators are paying closer attention to fair lending these days than ever, as well as the growing use of social media by mortgage lenders, some top compliance sources have offered up a number of best practices and other recommendations to help firms reduce or eliminate their potential liability. Ive heard it said that some companies choose not to do social media or websites because of the risk. When I hear that, Im perplexed because it is the main form of communication with the ...
Legislation filed in the House two weeks ago would require the Treasury Department to once again amend its agreement with Fannie Mae and Freddie Mac to allow the GSEs to pay down the billions of taxpayer dollars the companies received while in government conservatorship.Under the Let the GSEs Pay US Back Act of 2013, H.R. 2435, sponsored by Rep. Michael Capuano, D-MA the GSE senior preferred stock purchased by the Treasury would no longer accrue dividends, as is the current practice.
Sponsors of the highly anticipated, bipartisan Senate legislation intended to reform the mortgage-finance system without Fannie Mae and Freddie Mac unveiled their final proposal last week.But with reform of the FHA more politically urgent and a more radical House bill waiting in the wings, even the Senate bills most avid industry supporters dont expect the measure to gain much political traction in the near term.
A Wells Fargo securities trial is underway in Minnesota federal district court where jurors will decide whether the financial institution had misrepresented the safety and soundness of its securities lending program and lied to investors about the risks involved or whether the economic crisis was to blame for investor losses. The securities lending program (SLP) was marketed to large institutional investors, including pension funds. As part of the SLP, Wells Fargo held the participants securities in custodial accounts and loaned them temporarily to brokers. The brokers then posted cash collateral, which the bank invested until the securities were returned. Under agreements with SLP participants, Wells Fargo acted...
The Federal Reserve decided against instituting new mortgage risk weightings in issuing its Basel III final rule this week, a decision that will likely make it easier and cheaper for financial institutions to hold onto their legacy non-agency MBS and thereby reduce the pressure they may feel to deleverage their balance sheets. In light of new regulations designed to improve the quality of mortgage underwriting as well as continued uncertainty regarding the aggregate impact of pending mortgage-related rulemakings, the draft final rule does not include the proposed risk weights and instead incorporates the risk weights for residential mortgages under the general risk-based capital rules, which assign a risk weight of either 50 percent (for most first-lien exposures) or 100 percent for other residential mortgage exposures, the Fed said. That means...
Credit unions held a total of $107.1 billion of MBS in their portfolios at the end of the first quarter of 2013, according to a new Inside MBS & ABS analysis and ranking of call report data. That was up 4.9 percent from the previous period, a relatively strong increase in a market where the supply of MBS outstanding has barely budged and the Federal Reserve represents a huge competitor for new issuance. Compared to a year ago, credit union MBS holdings were up 10.9 percent, while the total MBS market actually declined by 1.4 percent. Credit unions for the most part have ignored...[Includes one data chart]