FHFA
By Ryan Schuette | 05/15/2012
The Federal Housing Finance Agency unveiled new additions to the strategic plan it released in February this year, with many changes focused on moving the secondary mortgage market back to private capital sources and creating infrastructure needed to replace Fannie Mae and Freddie Mac. The additions include four principles, such as safety and security for the residential mortgage market, stability and liquidity in housing finance, and preservation of current enterprise assets. The plan, due for enactment if passed by Congress between the years 2013 and 2017.
Read More
By Ryan Schuette | 05/11/2012
Freddie Mac announced Thursday that Donald Layton, a longtime banking executive from the private sector, will take over as CEO of the company come May. The new executive will replace outgoing CEO Charles Haldeman, who made the decision to step down last fall. Layton arrives at the new position with more than three decades of private-sector experience, largely with JPMorgan Chase, where he began as a trainee and finished as vice chairman in a top-tier three-member office upon retirement in 2004. The seasoned executive joins Freddie Mac at a time of challenge and transition for the company.
Read More
By Ryan Schuette | 05/09/2012
Fannie Mae revealed that it produced $2.7 billion in net income for the first quarter this year, enough to prevent another draw from the Treasury, a first for the mortgage giant since it entered federal conservatorship in 2008. The favorable results offer a significant difference to a net loss of $6.5 billion from the same quarter last year, along with a net loss of $2.4 billion by the fourth quarter. Despite net income for the first quarter, Fannie Mae sustains a debt for more than $180 billion in taxpayer funds it has received with Freddie Mac since 2008.
Read More
By Krista Franks Brock | 05/09/2012
Noting some recent strengthening in demand in the housing market, Capital Economics suggests housing prices "are close to, or already through, their trough," and recovery will continue through the coming months. While acknowledging the decline in home sales in March, Capital Economics’ analysts remain optimistic due to the recent increases in pending home sales. The National Association of Realtors' latest Pending Home Sales Index in March reached 101.4, its highest level since April 2010. Recent data on mortgage applications also point toward a strengthening market.
Read More
By Ryan Schuette | 04/26/2012
Talk of reform for Fannie Mae, Freddie Mac, and the Federal Housing Administration featured prominently at a hearing convened by the Senate Banking Committee Thursday to address HUD’s budget for the next fiscal year. The FHA has fallen under scrutiny in recent years over an inability to meet the 2 percent capital ratio buffer required by law. GSE also reform remains a dead issue this election year, despite numerous proposals for reform from lawmakers and public outcry over more than $180 billion in taxpayer funds sunken into conservatorship.
Read More
By Ryan Schuette | 04/26/2012
Lawmakers seated on the Senate Banking Committee convened a hearing Wednesday to determine just how radically draft legislation should lift barriers to refinance opportunities for homeowners and lenders. The message from those testifying: More refinance modifications would help, but beware of the impact for investors and lenders. The Obama administration moved on expansions to HARP last fall by working with the Federal Housing Finance Agency to sign off on lower loan-to-value ratio requirements and remove obstacles for lenders and servicers.
Read More
By Ryan Schuette | 04/25/2012
Parties to the landmark mortgage servicing settlement in February appointed one man to oversee $25 billion in compliance. In an interview with DS News, our sister publication, Joseph A. Smith, onetime banking commissioner for North Carolina and ex-nominee for the Federal Housing Finance Agency, lays out the role he envisions playing as he monitors funds for homeowners, states, and the federal government. The settlement monitor speaks with an understated tone about his stewardship of the historic settlement, which 49 state attorneys general and federal officials completed in February.
Read More
By Ryan Schuette | 04/16/2012
Mortgage servicers would feel the pain if the Consumer Financial Protection Bureau finalizes new rules it plans to propose this summer, according to Fitch Ratings. The ratings agency said in a statement that increased operational, compliance, and reporting expenses would take place if the rules take effect without any modification by the agency. The CFPB issued statements last week that signal its intentions to roll out with new proposals for rules that require more disclosure and transparency from servicers.
Read More
By Ryan Schuette | 04/12/2012
Democratic state attorneys general circulated a letter Thursday that called on Fannie Mae and Freddie Mac – and their regulator – to move forward with principal reductions. FHFA Acting Director Edward DeMarco continues to resist calls by lawmakers and policymakers to implement new loan modifications for homeowners, stressing the agency’s “preserve and conserve” mandate. Coakley and others were joined this week by International Monetary Fund Director Christine Lagarde.
Read More
By Ryan Schuette | 03/27/2012
Mortgage rates continued to show signs of stability this week, with rates for the 30-year fixed-rate mortgage largely repeating a series of bumpy but steady fluctuations. Real estate Web site Zillow fielded 3.88 percent for the 30-year loan, nine basis points down from 3.97 percent last week after a back-and-forth between 3.89 percent and 3.98 percent. The company said that rates for the 15-year loan averaged 3.1 percent this week, with those for 5-year and 1-year adjustable-rate mortgages not far behind at 2.72 percent.
Read More
