Cart

Inside The GSEs

August 19, 2011

View Archived Issues

GSEs Weather S&P’s Ratings Downgrade

The consensus among mortgage market watchers is that the downgrade earlier this month of the GSEs by Standard & Poor’s will have no immediate, detrimental impact even as Fitch Ratings this week said it is keeping Fannie Mae and Freddie Mac’s “AAA” rating.Fitch this week also said its outlook for Fannie and Freddie’s ratings remained “stable.” The move was in concert with Fitch’s decision to keep its rating on U.S. debt at the highest grade.“A key element of the explicit support is the guarantee by the U.S. Treasury to inject funds into Fannie Mae and Freddie Mac, so that each firm can avoid being considered technically insolvent by their regulator,” said the rating agency. Read More

FHLBs Pay Off REFCORP, Launch Capital Plan

The Federal Home Loan Banks are moving forward with plans that would permit the Banks to bolster their capital following confirmation earlier this month that the FHLBanks have officially paid off their interest debt on Resolution Funding Corporation bonds.The Federal Housing Finance Agency formally announced on Aug. 5 that the 12 FHLBanks completed their REFCORP obligations with their July 15, 2011 payment. The Finance Agency subsequently approved amended plans for the Banks. Read More

GSE Critic Hensarling Appointed To Debt ‘Super Committee’

The Vice-Chairman of the House Financial Services Committee, and an outspoken GSE critic, is among the Capitol Hill lawmakers named to be one of the 12 “super committee” House and Senate members tasked with tackling debt reduction. Read More

Suggestions Wanted to Move GSE REO Units

Fannie Mae, Freddie Mac and three federal agencies are cranking up existing efforts to dispose of the GSEs’ ample real estate owned inventory of homes into overdrive by seeking investors’ ideas for converting thousands of REO properties into rentals.Last week, the Federal Housing Finance Agency, the Treasury Department and the Department of Housing and Urban Development put out a “request for information” on how best to sell GSE and FHA-owned REO properties. Read More

Fannie, Freddie Losses Mount in 2Q Earnings

Fannie Mae and Freddie Mac lost less in the second quarter of 2011 than during the previous three month period and less than one year ago, but the two GSEs continue to struggle with a huge run of losses well into the fifth year with no end in sight. Read More

Fannie Mae Updates Property Preservation Matrix for Servicers

Fannie Mae last week reminded its servicers of their responsibilities “for performing all property maintenance functions” throughout the foreclosure process “to ensure that the condition and appearance of the property are maintained satisfactorily.” Read More

House Dems: Extend GSE Jobless Forbearance

A group of House Democrats wants the Obama administration to extend the forbearance period up to a year for unemployed homeowners with mortgages owned by Fannie Mae or Freddie Mac. Read More

OIG Tells FHFA to Fix GSE HAMP Dispute

A report issued late last week by the Federal Housing Finance Agency Office of Inspector General has concluded that the FHFA did nothing to subvert its role as Fannie Mae and Freddie Mac’s regulator when the agency negotiated the GSEs’ administrative responsibilities under the Treasury Department’s Home Affordable Modification Program.However, the FHFA-OIG noted there was ample room for improvement in the Finance Agency’s oversight of the GSEs’ financial agency agreement (FAA) with Treasury, which resulted in poor communication and differing expectations as to the payment and scope of the HAMP-related work that the GSEs performed. Read More

Appeals Court Sides With FHFA in FOIA Case

A conservative, non-partisan public interest group is considering its options following a recent federal appeals court decision affirming the Federal Housing Finance Agency’s right to withhold documentation revealing the extent of political campaign donations made by Fannie Mae and Freddie Mac.On Aug. 5, the U.S. Court of Appeals for the District of Columbia upheld a lower court ruling against Judicial Watch. Read More

AARP Files Class Action Lawsuit Against Fannie, Wells Fargo

AARP has filed a class action lawsuit against Wells Fargo Bank and Fannie Mae in the U.S. District Court for the Northern District of California in San Francisco on behalf of reverse mortgage borrowers and their survivors in what it says is an attempt to head off illegal Home Equity Conversion Mortgage foreclosures and evictions. Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results