Democrats on the Senate Banking Committee are putting pressure on FHFA to answer whether the GSEs’ NPL sales impact homeowners’ access to foreclosure and forbearance protections under the CARES Act.
The concern centers on a clause that states beginning January 2022, the FHFA will cap the amount of mortgages any lender can deliver to the cash window at $1.5 billion over any four-quarter period.
The FHFA IG highlighted the agency’s failure to ensure the boards of the two GSEs are notified after its Division of Enterprise Regulation has identified serious deficiencies in management. The OIG said this has been the state of affairs since at least 2016.
MIAC is looking to place fix-and-flip loans originated by an unidentified lender in the mid-Atlantic. The seller, using private funds, is currently funding $3 million to $5 million of product per month…
The amended preferred stock purchase agreement provides Treasury with a liquidation preference, which undermines the GSEs’ ability to afford an exit from conservatorship.
Mortgage insurers have endorsed the proposed guidelines, even arguing the process should be made more transparent and objective. However, Quicken believes it will stifle innovation by the GSEs.
Four and a half years after the OIG recommended that FHFA notify GSE directors of supervisory concerns, the agency continues to notify Fannie and Freddie management instead.
The FHFA is looking for stakeholder views on the risks faced by the GSEs and the supervisory and regulatory framework necessary to meet these challenges.
Fannie financed $76 billion through its Delegated Underwriting and Servicing program, while Freddie pumped out $82.5 billion in loan purchases and guarantees.