The Federal Housing Finance Agency has failed to implement its initiative to dispose of GSE and government-held real estate-owned properties in an “open and transparent manner” in the Golden State, according to the California Association of Realtors. Two weeks ago CAR renewed its vocal opposition to the FHFA’s implementation of an REO bulk sales pilot initiative in California, accusing the Finance Agency of advancing the program in a “highly secretive manner” despite the “negative economic impact” the trade group says it will have on the state’s housing market.

Fifth Third Bank received the highest ranking among servicers ranked by Fannie May during the first half of 2012, the GSE recently announced. In 2011, Fannie rolled out its Servicer Total Achievement and Rewards (STAR) program, designed to encourage customer service improvements and better foreclosure prevention outcomes for homeowners by rating servicers on their performance in those areas.

Mortgage repurchases and indemnifications by Fannie Mae and Freddie Mac seller-servicers increased during the second quarter of 2012, but the inventory of pending and disputed buyback demands continued to grow. A new Inside Mortgage Trends analysis of repurchase disclosures made by the two government-sponsored enterprises reveals that lenders repurchased some $3.03 billion of home loans, or otherwise indemnified the GSEs for losses on these loans, during the second quarter. That was ... [Includes one data chart]

Excess servicing spreads qualify as real-estate related investments for real estate investment trusts, according to a new ruling by the IRS. The private-letter ruling issued in August allows an un-named REIT to invest in the assets, with others exploring the possibility, according to industry analysts. “In anticipation of new financial industry regulations and in order to improve their liquidity and capital positions, many servicers have begun selling their excess servicing spreads to passive ...

New issuance of single-family agency MBS pass-through securities increased by 12.2 percent from July to August, pushing the market over the $1 trillion mark for the year with plenty of gas still in the tank. A new Inside MBS & ABS ranking and analysis reveals that all three agencies saw solid gains in MBS issuance last month, largely based on increased refinance activity. Agency MBS production climbed to $149.2 billion in August, the highest monthly production level since March. Ginnie Mae posted the biggest gain, a 15.1 percent increase from July levels, but Freddie Mac (13.5 percent) and Fannie Mae (10.3 percent) also saw healthy increases in production volume. Total agency issuance for the first eight months of 2012 was...[Includes one data chart]

Last month’s surprise move by the Treasury Department to revise the preferred stock purchase agreements with Fannie Mae and Freddie Mac definitively settles the question of “when” not “if” the two government-sponsored enterprises are to be wound down but it also removes any remaining sense of urgency to push a legislative solution to GSE reform, according to industry analysts. On Aug. 17, Treasury announced it will require Fannie and Freddie to turn over any profits they earn to the government. Rather than continue to borrow from the Treasury to make a 10 percent dividend payment to the Treasury, the revised PSPA implements a “full income sweep” of GSE profits. Additionally, Treasury’s announcement calls...

The Homeownership Protection Program Joint Powers Authority Board, a partnership between California’s San Bernardino County and two of its local communities, unanimously directed staff to develop a request for proposals that would invite interested parties with any kind of formal plan to assist underwater families in the JPA area to submit those plans for board consideration. The JPA is examining local government solutions to the negative-equity issues many homeowners in the two participating communities of Fontana and Ontario are having, with the goal of keeping families in their homes, reducing defaults and foreclosures, and enhancing the economic health of the communities. “Presently, the board has not received...

The Federal Housing Finance Agency is pushing its own version of mortgage reform: an ambitious agenda of standardizing Fannie Mae and Freddie Mac securitization operations to the point that their MBS are interchangeable. The plan, hatched in the absence of any substantial move by Congress or the Obama administration to address the nearly four-year-old conservatorships of the government-sponsored enterprises, has won broad endorsement from the lending and securitization industries. But some analysts say the FHFA strategy will make things worse, not better. Karen Shaw Petrou, managing partner of Federal Financial Analytics, a proprietary think-tank in Washington, DC, characterized the idea as “seductive” and “dangerous as all get-out.” First, there’s the issue of whether the two GSEs could be...

As Congress returns from its August recess next week for an abbreviated legislative session, mortgage market watchers inside the Capitol Hill beltway forecast a significant shift in the focus of those seeking to oust the current head of the Federal Housing Finance Agency. When Congress adjourned for the summer six weeks ago, lawmakers were alternately fuming or lauding the long-awaited decision by FHFA Acting Director Edward DeMarco to not allow Fannie Mae and Freddie Mac to implement the Treasury Department’s Home Affordable Modification Principal Reduction Alternative.