Fannie Mae and Freddie Mac this week reported a combined $15.1 billion in net income during the second quarter of 2013, as the two government-sponsored enterprises came closer to having paid the government as much in dividends as they have taken in bailout funds. Fannie reported $10.1 billion in net income, the companys sixth consecutive quarterly profit. During the first quarter, Fannie posted $58.7 billion in net income, boosted by its release of $50.6 billion in deferred tax assets. Under the revised conservatorship arrangement, any GSE net worth exceeding $3.0 billion is forked...
The three government MBS agencies issued $144.26 billion of single-family MBS last month, down 3 percent from Junes level. It was the lowest monthly production level so far in 2013.
Industry reaction to Obamas speech was generally favorable, particularly as it related to his call for continued, unfettered access to the 30-year FRM.
Stated-income loans are being offered at 5.49 percent as long as the borrower puts down 20 percent. Meanwhile, Walter wants to keep its contract terms with Fannie Mae secret.
Ocwen Financial has outpaced subprime servicers in terms of growth in the past year and hopes to more than double its portfolio within the next year. Ocwen handled $145.98 billion in subprime mortgages as of the end of the second quarter of 2013, a 54.8 percent increase compared with the same time last year. In the past year, no other servicer grew at a rate even close to that, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $440 billion in ... [Includes one data chart]
Ocwen Financial is preparing to enter a settlement with state regulators similar to the $25 billion national servicing settlement. A person with knowledge of the negotiations said regulators are working on settlements with individual servicers as opposed to the multi-servicer agreement with five banks announced last year. We look forward to finalizing this process, which we expect will occur very soon, Ronald Faris, Ocwens president and CEO, said last week during an earnings call. The servicer said ...
Three non-agency mortgage-backed security trustees filed lawsuits this week against Richmond, CA, which plans to use eminent domain to purchase mortgages with negative equity. The city recently sent letters to servicers and trustees of non-agency MBS offering to purchase 624 mortgages. If the MBS trustees do not sell the loans for the offered price of 80 percent of the current value of the properties, Richmond Mayor Gayle McLaughlin, a member of the Green Party, said the city intends to ...
Carrington Mortgage Services recently reversed its response to a survey regarding accounting for principal forbearance. The servicer initially told Fitch Ratings that it reported all forbearance amounts as losses on modifications and will continue to report forbearance mods as losses at the time of modification. However, near the end of July, Carrington said it has approximately $300 million in principal forbearance amounts that havent been reported as losses ... [Includes four briefs]
The question of whether the FHA should allow the refinancing of underwater mortgages seized through eminent domain has reemerged as a key issue following a recent decision by the city of Richmond, CA, to use its authority to take over distressed mortgages for restructuring. There is a new twist to the question, however. Could FHAs refusal to refinance such mortgages be deemed discriminatory against cities and homeowners if eminent domain programs meet the requirements of the FHA Short Refinance program? Is that tantamount to redlining? A top executive of Mortgage Resolution Partners, which developed the eminent domain strategy to help underwater homeowners at risk of foreclosure, said ...
PNC Financial Services Group is under federal investigation regarding claims on expenses it incurred in connection with the foreclosure of loans insured or guaranteed by the FHA, Fannie Mae or Freddie Mac. In a recent filing with the Securities and Exchange Commission, PNC disclosed a subpoena from the U.S. Attorneys Office for the Southern District of New York seeking documents related to the foreclosures. PNC said the inquiry is in its early stage and that ...