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Inside The GSEs

December 9, 2011

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Bill Critics: SEC, Not FHFA, Merits Authority

Lawmakers and experts reviewing a proposed bill that seeks to drastically overhaul the secondary mortgage market without the need for Fannie Mae and Freddie Mac question whether the Federal Housing Finance Agency is the most appropriate choice to implement key components of the program.The Private Mortgage Market Investment Act, drafted but not yet filed by Rep. Scott Garrett, R-NJ, would create a heavily regulated mortgage-backed securities market made up solely of private entities that would function with no federal guarantee at all. Read More

FHFA Sets Final Rule for FHLBank Mergers

The Federal Housing Finance Agency issued a final rule last week which clears the way for the Federal Home Loan Banks to voluntarily merge, but it remains to be seen whether any of the 12 FHLBanks desire consolidation.The final rule, published in the Nov. 28 Federal Register, is largely similar to the proposal the FHFA issued one year ago following “a number of minor revisions” to address concerns raised by commenters. Read More

GSE Debt Issuance Rises in Third Quarter 2011

Debt issuance for Fannie Mae, Freddie Mac and the Federal Home Loan Banks all recorded increases in new debt issuance during the third quarter of 2011.The three GSEs collectively issued $797.7 billion in new debt issue during the third quarter, a 9.8 percent increase from the previous quarter, while GSE debt outstanding at $2.152 trillion declined 4.8 percent from the second quarter. Read More

Fannie, Freddie Suspend Evictions During the Holiday Season

Just in time for the holidays, Fannie Mae and Freddie Mac each announced last week that all foreclosure-related evictions from occupied single-family and two-to-four unit properties with Fannie or Freddie mortgages will be suspended from Dec. 19, 2011 to Jan. 2, 2012. Read More

Senate Bill Puts GSEs in Receivership in 18 Months

Fannie Mae and Freddie Mac would be put into “irrevocable receivership” with the Federal Housing Finance Agency tasked as their receiver no later than 18 months after enactment of a bill introduced in the Senate this week.Sen. Johnny Isakson, R-GA, introduced the Mortgage Finance Act of 2011 to “get the American taxpayer out of the business of bailing out the mortgage industry.” The bill would wind down Fannie and Freddie while creating a new regulatory framework for “high-quality” mortgage securitization for both single-family and multifamily mortgages. Read More

OIG Finds Fault With FHFA’s Supervision of GSEs

The Federal Housing Finance Agency needs to be much more hands-on and engaged in its oversight of Fannie Mae and Freddie Mac, according to the Finance Agency’s official watchdog.The FHFA Office of Inspector General’s conclusion is not new, but the OIG doubled down on its criticism of the agency last week both in its Semiannual Report to Congress and in written testimony submitted to the House Financial Services Subcommittee on Oversight and Investigations. Read More

FHFA Appoints New COO, Senior GSE Examiner

The Federal Housing Finance Agency last week announced two new outside hires to fill the slots of chief operating officer and the agency’s deputy director of division enterprise regulation.As the FHFA’s COO, Richard Hornsby will be responsible for the strategic management of the agency’s operations and will oversee the FHFA’s administrative and support services, including budget and finance, human resources and information technology. Read More

GSEs Cite Cost Cutting, Reps Note Meeting Spending

The CEOs of Fannie Mae and Freddie Mac told lawmakers last week they have been working to manage all expenses prudently at the taxpayer-subsidized government-sponsored enterprises even as they sought to explain away reports that the two GSEs ran up a six-figure bill attending an industry convention in Chicago in October.Testifying before the House Financial Services Subcommittee on Oversight and Investigations, Fannie CEO Michael Williams and Freddie CEO Charles Haldeman noted the GSEs’ importance in the current and future mortgage markets even as they cited their efforts to reduce overall expenses through money-saving cuts and improvements in operational efficiency over the last three years. Read More

FHFA: Comments Slowly Shape REO Initiative

The government’s effort to develop and implement a plan for bulk sales of inventory of government-owned foreclosed properties is slowly gaining form and substance, according to the summary of suggestions released by the Federal Housing Finance Agency released last week.In August, the FHFA, along with the Treasury Department and the Department of Housing and Urban Development, issued a request for information seeking input for new options for selling single family REO held by Fannie Mae, Freddie Mac and the FHA. Read More

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