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Inside The GSEs

August 26, 2009

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GSEs Navigating Tricky Counterparty Waters

The continuing tough times in the mortgage market are posing some dicey challenges for Fannie Mae and Freddie Mac and the relationships they have with their counterparties, many of which represent an increasing level of risk to the GSEs. On the one hand, Fannie and Freddie may be showing some leniency toward many of their struggling seller partners by not holding... Read More

FHLB Advances Down 20.4 Percent in 2Q09

After peaking in the third quarter of 2008, the 12 Federal Home Loan Banks saw their collective advance business drop for the third consecutive quarter, this time by 20.4 percent, to $739 billion, during the second quarter of the year. However, they were still able to report combined net income of $1.123 billion for the period, a 56.4 percent improvement from the... Read More

In Fannie’s Wake, Freddie Took a Chance on TBW

Fannie Mae’s decision in 2002 to stop doing business with Taylor, Bean & Whitaker now looks like a stroke of genius, while Freddie Mac’s decision to opportunistically swoop in to pick up some share now has come back to haunt it. TBW reportedly ran afoul of Fannie back in 2002 over some of its lending practices, compelling Fannie to demand the lender repurchase a number... [Includes one chart] Read More

Fannie Still Dominates GSE Production by State

Fannie Mae continued to own the lion’s share of GSE production through the first half of the year, holding 64.6 percent share of the business done for the period, according to the new GSE Market Profile: First Half 2009 report published recently by Inside Mortgage Finance Publications. In fact, of the 54 U.S. states, jurisdictions and territories... [Includes one chart] Read More

GSE Warehouse Lending Pilots Tantalize Originators

Mortgage originators desperate for greater warehousing capacity are anxiously, hopefully eyeing some pilot programs reportedly underway at Fannie Mae and Freddie Mac that might give them some relief. “We’re hopeful that in fact there’s going to be a role for the GSEs. [Federal Housing Finance Agency] Director James Lockhart has stated publicly that the GSEs have a couple of pilot... Read More

Freddie Volume Drops; Refi Boom Fades as Rates Rise

Freddie Mac’s refinance-loan purchase volume dramatically dropped 33 percent in July, from $50.9 billion to $34.1 billion, the company revealed this week, as rising mortgage rates choked off a healthy refi boom. Experts believe the surge in refinance mortgage lending ground to a halt after mortgage rates crept up over 5.00 percent. Freddie also indicated its purchases fell sharply, from $63.15... Read More

Freddie Adds Industry Vet Bruce Witherell as COO

Freddie Mac last week announced that mortgage industry veteran Bruce Witherell would assume the role of chief operating officer as of Sept. 14, 2009, overseeing the company’s three business lines – single family credit guarantee, multifamily sourcing, and investments and capital markets – as well as its operations and technology division. Witherell takes the position left vacant by... Read More

Judicial Watch Presses FHFA Over GSE Contributions

The conservative group, Judicial Watch, a self-styled government watchdog, has filed a lawsuit against the Federal Housing Finance Agency in an attempt to obtain the records of Fannie Mae’s and Freddie Mac’s political contributions to numerous lawmakers of both major political parties, including members of Congress with jurisdictional responsibility over the pair. The FHFA had previously... Read More

FHLBanks Oppose Centralized Reporting Function

The Federal Home Loan Banks and the Office of Finance are opposed to the recommendation of a study the Office of Finance sponsored last year that calls for more centralization of their collective reporting function. The report comes in the wake of the pounding the Banks have taken over accounting issues such as the “other-than-temporary impairment” charges associated with their deteriorating... Read More

News In Brief

FHLBank of Seattle is Now Officially Undercapitalized: The Federal Home Loan Bank of Seattle continued to get pounded by... FHFA’s Lockhart Gets a New Gig. So Who Will Replace Him?: Outgoing Federal Housing Finance Agency Director James... Fannie, Freddie On the Way to Averting NYSE Delisting Threat: Fannie Mae and Freddie Mac have seen their stock prices rebound above... Read More

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