Come next year, Freddie Mac will assess lenders a fee of $7,500 if they fail to deliver mortgage loans with an aggregate principal balance of more than $5 million.
When was the last time a financial institution operating under a government conservatorship started a new company, one that potentially stands to make a bunch of money, given the rapidly improving mortgage market? Answer: Never. This and other questions are being asked by mortgage executives who are trying to track the progress of the Federal Housing Finance Agency’s common securitization platform, a joint venture between Fannie Mae and Freddie Mac. FHFA officials...
Freddie Mac this week issued $1.04 billion of MBS backed by modified loans, making a small dent in the government-sponsored enterprise’s portfolio of distressed mortgages. The securities were issued under a new MBS prefix reserved just for modified loans, and Freddie officials indicated that the securities would be held in portfolio rather than sold in the market. All of the modified loans are fixed-rate mortgages, although $138.2 million of the loans were originally adjustable-rate mortgages. Most of the loan mods have 30-year terms. The loans in the first batch of mod MBS were originated...
Sens. Mark Warner, D-VA, and Bob Corker, R-TN, are working on legislation that would create a new federal mortgage guarantor, replacing Fannie Mae and Freddie Mac, according to trade and legislative officials familiar with the matter. However, as Inside The GSEs went to press this week, little was known in terms of specifics. “This would be a federal insurance entity, involving insurance wraps” said one trade group official. “It would involve a tiered risk-sharing system.”
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