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Inside The GSEs

September 2, 2011

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FHFA Files Conditional Objection to BofA Deal

The Federal Housing Finance Agency this week became among the latest, most influential parties to legally weigh in on the proposed $8.5 billion Bank of America settlement over non-agency mortgage-backed securities.On Aug. 30, the deadline to file objections to the deal, the Finance Agency filed a “Notice of Appearance and Conditional Objection” with the U.S. District Court in Manhattan on behalf of Fannie Mae and Freddie Mac. Read More

FHLBanks Seek to Ensure QRM Exemption

The Federal Home Loan Bank system has requested that federal regulators clearly and unambiguously exempt the FHLBanks’ long-standing mortgage purchase programs from the government’s emerging risk-retention rule on securitization.In comments submitted to regulators last month on the interagency proposed rule, the 12 FHLBanks signed a joint letter to ensure the Banks’ Acquired Member Assets programs will be exempt under the final rule. Read More

FHLB Topeka Asks FHFA to Revise Director Eligibility Form

The Federal Housing Finance Agency needs to tweak its proposed eligibility certification form for prospective directors of the 12 Federal Home Loan Banks, according to comments received by the Finance Agency. Read More

GSE Debt Issuance Rises Overall in 2Q 2011

Debt issuance for Fannie Mae, Freddie Mac and the Federal Home Loan Banks rose during the second quarter of 2011, while Freddie recorded a decline in new debt during the April to June period.The GSEs collectively issued $726.2 billion in new debt during the second quarter, a 2.6 percent increase from the previous quarter, while GSE debt outstanding at $2.168 trillion declined 4.8 percent from the first quarter. Read More

CBO Projects $51B GSE Subsidy Over 10 Years

The government will subsidize Fannie Mae and Freddie Mac new business to the tune of about $51.0 billion over the next 10 years, according to the latest projections from the Congressional Budget Office.CBO’s most recent budget and economic outlook, released in late August, increased its estimate of the subsidy cost for the two GSEs during the period between 2012 to 2021 from the approximate $41.6 billion that the CBO forecast in June. Read More

FHLBanks, Freddie Seek Clarity on FHFA Standards

Several of the prudential management and operations standards recently proposed by the Federal Housing Finance Agency are “duplicative of, or conflict with, current regulatory requirements” and should be further refined before final issuance, according to a comment letter written by the 12 Federal Home Loan Banks.The FHLBanks suggest numerous and significant revisions or clarifications to the proposed rule the FHFA issued in June. Read More

Obama GSE Refi Plan May Revamp HARP

The Obama administration is expected to roll out a more aggressive agency refinance program soon as part of a new economic stimulus package with Wall Street analysts predicting the plan will likely focus on pricing changes at Fannie Mae and Freddie Mac or an expansion of the Home Affordable Refinance Program.A recent report by Amherst Securities Group notes that a massive government refinance program “is unlikely, as it could not be implemented without subjecting the GSEs (and implicitly the taxpayer) to an increased level of risk.” Read More

FHFA Amends Privacy Act Regulation to Include FHFA-OIG

The Federal Housing Finance Agency has issued an interim final regulation with a request for comments on changes to its existing Privacy Act regulations. Read More

PMI Suspended By GSEs Effective Immediately

In a not unexpected development, PMI Mortgage Insurance has become the second mortgage insurer in less than a month to be suspended by Fannie Mae and Freddie Mac as an approved GSE mortgage insurer after the company announced state regulators placed PMI under a supervisory order.Mortgages insured by PMI Mortgage Insurance or its affiliates PMI Mortgage Insurance Co. (MIC) and PMI Insurance Co. (PIC) with notes before May 19, 2011, or after Sept. 16, 2011, will no longer be purchased or securitized by Fannie or Freddie, the GSEs announced separately last week. Read More

Boxer Calls on FHFA to Enact Her GSE Refi Proposals

The junior senator from California is making another public push to overhaul GSE refinance rules — this time by calling on the Federal Housing Finance Agency to immediately implement parts of her bill that would allow underwater borrowers to refi with Fannie Mae and Freddie Mac into a lower-rate loan.Last week, Sen. Barbara Boxer, D-CA, sent FHFA Acting Director Edward DeMarco a letter urging the Finance Agency to take action on the parts of S.170 that can be implemented administratively. Read More

FHFA To Sue Banks to Recover GSE MBS Losses

The Federal Housing Finance Agency is expected to file suit in federal court within the next several days against “more than a dozen big banks” in connection with failed investments by Fannie Mae and Freddie Mac in non-agency securities, according to published reports. As Inside The GSEs was going to press, the New York Times reported that the Finance Agency is ready to pull the trigger on litigation aimed at Bank of America, JPMorgan Chase, Goldman… Read More

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