The Federal Housing Finance Agency and the Consumer Financial Protection Bureau announced this week they will partner to create a national mortgage database to provide detailed information about mortgage loans. The database will primarily be used to support the agencies policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends, said the FHFA and CFPB.
No matter who sits in the Oval Office or which party controls Congress following next weeks election, expect GSE reform to remain a secondary priority in 2013, despite the best efforts of select lawmakers who want to get the legislative ball rolling, experts say. A functioning non-agency mortgage-backed securities market is necessary before members of Congress can be convinced to move forward with GSE reform, according to Rep. David Schweikert, R-AZ. Schweikert told attendees of the ABS East conference in Miami last week thats why he plans to introduce legislation during the 113th Congress to establish a non-agency MBS framework.
Freddie Mac and MGIC Investment Corp. have reached a tentative agreement to settle their simmering dispute over pool insurance, the mortgage insurer announced this week. Milwaukee-based MGIC will make payments to the GSE over four years under the arrangement, which required approval from the boards of both firms, as well as from the Federal Housing Finance Agency.
The streamlined short sale programs announced last summer by Fannie Mae and Freddie Mac received an extra boost from mortgage insurers as the programs took effect Nov 1.The GSEs this week announced signed delegation agreements with nine private mortgage insurance companies to allow Fannie and Freddie servicers to complete short sales and deeds-in-lieu without seeking approval from the MI.
The governments civil mortgage fraud lawsuit filed last week against Bank of America and Countrywide Financial for allegedly scheming to defraud Fannie Mae and Freddie Mac could have serious adverse consequences for the industry going forward, according to an industry attorney. Filed by the U.S. Attorney for the Southern District of New York, the government contends that since the U.S. Treasury has been forced to bail out the two GSEs, losses suffered by Fannie and Freddie can be recovered under the False Claims Act a federal law that provides for treble damages and penalties. Laurence Platt, financial services practice leader at K&L Gates, warned participants during an Inside Mortgage Finance webinar that the governments lawsuit against BofA and others like it sure to follow, threatens to turn every low-level rep and warranty with Fannie or Freddie into a federal case.
The Federal Housing Finance Agency can and should impose greater transparency standards on Fannie Mae and Freddie Mac given the two GSEs linchpin role in the mortgage market today, according to the head of the Mortgage Bankers Association. MBA President and CEO David Stevens at the associations annual convention in Chicago two weeks ago called for the Finance Agency as GSE conservator to require Fannie and Freddie to comply with public notice and comment rules before the GSEs impose new rules on the real estate finance industry. Taxpayer-supported Fannie and Freddie, along with Ginnie Mae a wholly owned government corporation within the Department of Housing and Urban Development currently backstop some 90 percent of all new mortgages.
The Federal Housing Finance Agency recently issued an updated strategic plan in which the FHFA outlines the next phase of conservatorship for the GSEs, Fannie Mae and Freddie Mac. The FHFAs plan establishes restrictions and expectations for the GSEs, which have been under government conservatorship since September 2008, but the agency does not manage the day-to-day operations of the two companies. Just like the draft document first submitted to Congress earlier this year, the FHFAs updated Strategic Plan: Fiscal Years 2013-2017 sets four broad goals for the Finance Agency: safe and sound housing GSEs; stability, liquidity, and access in housing finance; preserve and conserve the GSEs assets; and prepare for the future of housing finance in the U.S.
Fannie Mae and Freddie Mac this week directed servicers to inform homeowners reeling from the damage inflicted by Hurricane Sandy that they may be eligible for a temporary reprieve on their mortgage payments. The GSEs announcement reiterated their policy on mortgage relief to borrowers located in jurisdictions that the president has declared to be major disaster areas.
Mortgage lenders reported solid increases in loan originations during the third quarter of 2012, leading to a surge in securitization activity at Fannie Mae and Freddie Mac. Single-family mortgage originations totaled $475.0 billion during the third quarter, according to a new Inside Mortgage Finance analysis. That was up 9.2 percent from the second quarter of the year and marked the highest quarterly origination volume since the end of 2010, when an earlier refi surge pushed production to $520.0 billion. The strong third quarter suggests...[Includes two data charts]
Officials at National Mortgage Insurance say a state-of-the-art business platform and a somewhat old-school approach to writing private MI will help the company establish a beachhead in an industry thats seen three long-time players washed out to sea by the housing market collapse. National MI hopes to have its Fannie Mae and Freddie Mac approvals within the next few months, and its made significant headway in lining up state approvals, officials say. In June, the new private MI was approved for an accelerated licensing process that allows it to seek multiple state licenses on a streamlined basis. The private MI industry has seen...