Fannie Mae, Freddie Mac and their government conservator are all calling on the Consumer Financial Protection Bureau to amend proposed changes to its mortgage servicing rule because certain provisions would inhibit similar servicing goals put forth by the Federal Housing Finance Agency. In a comment letter, the FHFA said its servicing alignment initiative has pushed for improved practices that are similar to the goals of the CFPB rule, but several provisions in the recently proposed amendments would actually make those goals more difficult to achieve. The four areas of the CFPB proposal that are especially important cover...
Policymakers should replace Fannie Mae and Freddie Mac with mandatory mortgage insurance and a catastrophic guaranty from the federal government, according to a new paper from Promontory Financial Group, a consulting firm. The paper was prepared at the request of Genworth Financial and Promontory said the mortgage insurance firm didnt influence the recommendations. Under Promontorys proposal to reform the government-sponsored enterprises, private entities would both issue and guarantee their own mortgage-backed securities, private MI would be required on a loan-level basis for mortgages securitized in the new system, and a government agency would provide a back-up guaranty on the MBS payable only upon default by the MBS issuer. Our proposal is...
The Special Inspector General for the Troubled Asset Relief Program is pressing the Treasury Department to focus on servicer actions as part of efforts to reduce re-default rates in the Home Affordable Modification Program. The Treasury has pushed back against the suggestions, stating that it is always looking to improve the program. In a report published last week, the SIGTARP said HAMP mods have re-defaulted at an alarming rate. As of the end of April, the re-default rate on HAMP mods completed in 2009 was 46 percent and the re-default rate for HAMP mods completed in 2010 was 38 percent. While HAMP has helped...
The Federal Housing Finance Agency withdrew a proposed rule it was forced to issue regarding Property Assessed Clean Energy programs after prevailing in court.
The Senate won't vote on the nomination of Rep. Mel Watt, D-NC, for director of the Federal Housing Finance Agency, before leaving for its August recess.