The latest tally from Inside The GSEs has Fannie and Freddie repaying all of their borrowings from the U.S. Treasury plus an additional $50.6 billion – money that has gone directly into the government’s coffers.
There has long been a concern in the market that if either GSE has a negative net worth, that investors will stop buying their MBS, which would cause the home buying process in America to crumble.
In a recent letter to HUD Secretary Julian Castro, 69 House members called for policy changes that would relax FHA restrictions to facilitate the purchase and sale of condominiums.
OCC chief Thomas Curry added: “It’s clear to me that these reserves need to rise to account for the increasing credit risk we are seeing in the system."
In an apparent confirmation of the fears of some industry representatives, CFPB Director Richard Cordray seemed to blame technology vendors for some of the failures the mortgage industry might have in complying with the bureau’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule. “Quite frankly, I have been disturbed by reports I have been hearing about the vendors on whom so many of you rely,” Cordray said in a speech at the Mortgage Bankers Association’s annual convention in San Diego recently. “Some vendors performed poorly in getting their work done in a timely manner, and they unfairly put many of you on the spot with changes at the last minute or even past the due date,” ...
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