Lenders selling loans to the GSEs will get buyback relief for mortgages that go through Fannie Mae’s and Freddie Mac’s quality-control review processes, according to a new policy the companies announced this week. The new policy, issued in conjunction with the unveiling of the Federal Housing Finance Agency’s updated strategic plan and conservatorship scorecard, tinkers at the edges of the buyback safe harbor for loans with acceptable payment history.
Expect eligibility standards for mortgage insurance firms that rely on the GSEs later this year, according to MI executives’ reading of the long-awaited strategic plan released this week by the Federal Housing Finance Agency. Although the plan didn’t say much about MI eligibility, it does carry the veiled promise that pending standards, including risk-to-capital rules – are forthcoming. “FHFA hasn’t dropped the ball on the issue,” said one MI consultant who has met with the agency over the topic. “They now know that the [GSE reform bill] is dead and they want to make sure they get it right.”
The Federal Housing Finance Agency, under recently installed Director Mel Watt, will continue to ensure that the 12 Federal Home Loan Banks play their “important role” in providing reliable funding and secondary mortgage market access to member institutions, as well as maintain the Banks’ statutory affordable housing requirements, so said the man himself. Last week, in his first public speech before a financial services group, Watt cautioned FHLBank directors to keep a close watch on captive insurers that are seeking membership in the FHLB system.
Fannie: Single Point of Contact Lessens Foreclosure Risks. Offering a single point of contact who is plugged into the case of a distressed borrower greatly lessens the chance of that mortgage reaching foreclosure, according to a new study from Fannie Mae. During a press call with reporters last week, Leslie Peeler of Fannie’s National Servicing Organization noted that the research conducted by the GSE involving five large – but unnamed – mortgage servicers using the SPOC model concluded that homeowners dealing with the same individual were twice as likely to receive and accept a modification.
The presence of the Consumer Financial Protection Bureau is causing a seismic shift in the way mortgage lenders relate to their customers, with customer dissatisfaction a high-profile barometer that can quickly capture the bureau’s attention and focus it with an uncomfortable intensity in an unwanted direction. “For the first time in our industry’s history, the safety and soundness of the financial institution is just one part, albeit an important one, of what the government hopes to ...
More elderly consumers are carrying mortgage debt into retirement, posing greater risk to their financial security, according to a new report from the Consumer Financial Protection Bureau. For an estimated 4.4 million retirees with mortgage debt, making mortgage payments on top of other monthly expenses can be a hardship, the CFPB observed. Consequently, they accrue less home equity than their peers did a decade ago. Less home equity means less accumulated net wealth for ...
When the Federal Housing Finance Agency unveiled its long-awaited strategic plan for Fannie Mae and Freddie Mac this week, it provided scant guidance on pending eligibility standards for mortgage insurance firms that rely on the government-sponsored enterprises. But the good news for the MI sector is that there was a mention of the topic and a vague promise that eligibility standards – including capital-to-risk rules – will see the light of day this year. Although the agency did not offer a specific timetable, MI executives told Inside Mortgage Finance that they expect to see the standards early in the second half. “FHFA hasn’t dropped...
The Department of Housing and Urban Development this week announced several measures to expand underserved borrowers’ access to credit and to protect the FHA insurance fund, including a new pilot that would qualify borrowers for reduced mortgage insurance premiums through counseling. In remarks to the National Association of Realtors’ Regulatory Forum, HUD Secretary Shaun Donovan unveiled a new “Blueprint for Access,” which echoes plans outlined in the Obama administration’s 2015 budget proposal. Donovan said...
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