By the end of this year, Fannie Mae and Freddie Mac plan to create a clearinghouse of resources such as translated mortgage documents to help borrowers who have a limited proficiency of English.
Goldman Sachs is approaching $1 billion in credit towards reaching a $1.8 billion consumer-relief obligation under two mortgage-related settlement agreements with the Department of Justice and three states, including New York, Illinois and California.
Fannie disclosed the single-security “may adversely affect our financial results and contribute to declines in the liquidity or market value of our MBS.”
Packaging the loans into a non-agency MBS suggests that Flagstar expects better execution in the non-agency market than from delivering the mortgages to Fannie Mae or Freddie Mac.