In the past, the FHFA has shot down a couple of program myths and emphasized that being significantly underwater doesn’t disqualify borrowers from using HARP…
Investors in Freddie (and Fannie Mae) common and preferred who bought their shares as a speculative investment are still wondering: Hey, when do we get some of that money?
New issuance of non-agency commercial MBS fell dramatically during the second quarter of 2016, more than offsetting a modest uptick in the production of agency multifamily MBS, according to a new Inside MBS & ABS analysis. Non-agency CMBS issuance fell to just $12.87 billion in the second quarter, a 29.5 percent drop from the first three months of the year. It was the lowest quarterly output of new CMBS since the second quarter of 2012, when just $10.63 billion of new securities were issued and the market was still finding its legs after the financial meltdown. New CMBS issuance has been...[Includes one data table]
When rates plunge at the end of a given quarter – as they did in June – it usually translates into large hedging losses for Fannie Mae and Freddie Mac. But this time around, there seems to be less chatter about the topic – and a reduced level of anxiety. Next week, both government-sponsored enterprises will release second-quarter results and all eyes will be on the line item that reveals the net gain or loss from their derivatives, the instruments the two use to hedge their MBS positions. In the first quarter of this year, Freddie posted...
The Sixth U.S. Circuit Court of Appeals overturned a lower court decision that had cleared Freddie Mac of charges that it misled investors about its involvement in the subprime mortgage market. The lawsuit was filed in 2008 by the Ohio Public Employees Retirement System, which claimed Freddie made false public financial statements that hid its exposure to risky loans. The fund alleged that it lost more than $27.2 million as the value of Freddie stock plummeted. OPERS said...
Look for the Federal Reserve to repeat last year’s performance and raise interest rates one quarter of one percent in December, according to some supporters and critics of the U.S. central bank, enabling the Fed to say it did, in fact, lift interest rates this year. During its meeting in Washington, DC, this week, the Fed once again, as expected, opted to hold rates unchanged and did not tip its hand about a future move, although some market participants came away with the impression an increase in September is a little more likely than had been the case after the central bank’s last meeting. The Federal Reserve’s Open Market Committee last raised...
Ocwen Financial reported a net loss of $87.20 million for the second quarter of 2016, with most of the loss related to so-called legacy issues. A planned settlement with the Department of Justice of two lawsuits involving the Home Affordable Modification Program and FHA mortgages caused $40.10 million in pre-tax losses for the nonbank lender-servicer. The company also paid $28.10 million during the quarter to cover the cost of monitoring settlements involving federal regulators ...
EverBank Financial announced this week that it’s in “advanced discussions” with a “well-respected financial services company” that plans to acquire the depository. Everbank ranked 15th among jumbo lenders as of the first quarter of 2016 with $725.0 million in such originations during the quarter, according to Inside Nonconforming Markets. The company formerly known as NovaStar filed for Chapter 11 bankruptcy last week, citing ... [Includes four briefs]
Senate legislation that would make it easier to obtain FHA financing for condominium projects has been sent to the president for signature, though lenders seem to be more eager for long-anticipated condo reform guidelines from the Department of Housing and Urban Development. Senate lawmakers unanimously approved H.R. 3700, the “Housing Opportunity through Modernization Act,” before Congress retired for the August recess. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers said the bill would essentially codify FHA condo-financing guidelines, which HUD recently drafted and are currently undergoing clearance at the Office of Management and Budget. Under H.R. 3700, the FHA would be required to establish and implement a recertification process that is substantially less burdensome than the ...
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