Delegated servicers hired by Fannie Mae failed on numerous occasions to close short sales at the authorized price, according to a new audit from the Inspector General of the Federal Housing Finance Agency. The IG also found that a Fannie Mae remediation plan does not hold servicers fully accountable for the resulting losses. Issued late last week, the IG audit focused on the effectiveness of the FHFA’s oversight and Fannie’s controls over delegated servicers to ensure that net proceeds for short sales met the authorized reserve established by Fannie. The IG found that both the GSE and its regulator came up short.

Fannie Mae’s and Freddie Mac’s conservator and the regulator of the Federal Home Loan Bank system is requesting input on its strategic plan for the next four years. The Federal Housing Finance Agency is seeking feedback on its draft document “FHFA Strategic Plan: Fiscal Years 2015-2019.” The plan sets the agency’s priorities in its oversight of the two GSEs and the 12 FHLBanks. The plan lists three strategic goals: ensure safe and sound regulated entities; ensure liquidity, stability and access in housing finance; manage the enterprises' ongoing conservatorships.

There is little to no chance of legislative GSE reform occurring until at least 2016, so market participants should plan accordingly, predicted a report issued last week. Despite two separate bills awaiting a floor vote in both the House and Senate, Kroll Bond Rating Agency said there’s little chance housing reform legislation will garner enough support to pass until after the next presidential election.

Fannie, Freddie Subprime Holdings Continue to Run Off. The GSEs’ holdings of nonprime mortgages continue to decline, largely due to runoff, according to a new analysis by Inside Nonconforming Markets, an affiliated publication. Fannie Mae and Freddie Mac held a combined $252.2 billion of Alt A and subprime mortgage assets at the end of the second quarter, down 18.3 percent from 2Q13. Purchased/guaranteed mortgages account for 71.9 percent of the holdings, with the rest of the GSEs’ nonprime exposure in non-agency mortgage-backed securities.

Fannie Mae and Freddie Mac in July posted a combined increase in the volume of single-family mortgages they securitized, according to a new Inside The GSEs analysis.Fannie and Freddie issued $57.9 billion in single-family mortgage-backed securities in July, a 12.3 percent increase from June. However, July’s MBS issuance was down 59.0 percent on a year-to-date basis.

Servicing advisors told IMFnews that many of the bulk deals they have been seeing of late are $4 billion in size or under.

Investors Unite now boasts almost 1,000 members, which include both common and preferred stakeholders in Fannie Mae and Freddie Mac.

A big deal or ho-hum: Fannie Mae in late July said it will allow for shorter waiting periods involving mortgage debt charge-off accounts and mortgage debt that is discharged through a bankruptcy.

Unlike the various 20 lawsuits filed against the government, Pershing Square Capital Management's legal actions focus on common shareholders.

Fannie and Freddie held a combined $252 billion in Alt A and subprime mortgage assets at the end of June, down 18.3 percent from the second quarter of 2013.