Housing-finance reform appears to be in the process of a slow death for 2018 partly because of the pending departure of key players, according to Bank of America Merrill Lynch analysts.

The Senate bill to roll back various parts of the Dodd-Frank Act has been stalled in the House, where leading Republicans have asked for additional provisions that would further relax regulations.

The staff of Rep. Jeb Hensarling, R-TX, is putting the finishing touches on a plan to reform the nation’s housing-finance system, but several lobbyists and trade group officials question what impact the proposal will have.

The Structured Finance Industry Group wants to make sure any housing-finance reform bill ensures continued liquidity in the MBS market. The Wall Street group recently penned a letter to Sens. Bob Corker, R-TN, and Mark Warner, D-VA, to give feedback on a draft version of the Senate bill.

Most experts agree that passing housing-finance reform legislation in 2018 now looks improbable, leaving the immediate future of Fannie Mae and Freddie Mac in the hands of the Treasury Department and the Federal Housing Finance Agency. Researchers at the Urban Institute say that if legislation remains stalled, the two GSEs could be placed into receivership and reconstituted. Laurie Goodman, director of UI’s Housing Finance Policy Center, said Fannie and Freddie could be wound down within five years, under the Housing and Economic Recovery Act, and be replaced by new entities with no government backstop. She noted that this scenario would leave the fate of government support for the GSEs’ legacy mortgage-backed securities unclear.

Possible changes suggested for Fannie Mae and Freddie Mac could lead to borrowers paying an extra $400 a month in mortgage payments, according to a new analysis from Zillow. If the 30-year fixed-rate mortgage were to be done away with, Zillow said future mortgage borrowers would get loans with shorter terms and higher interest rates. For example, without the popular 30-year fixed-rate mortgage, the typical buyer would pay an additional $390 each month on the median-priced home for a 15-year fixed-rate mortgage. Moreover, the conforming market would move closer to the jumbo sector. Zillow noted that a 30-year non-conforming loan would cost borrowers about $20 more per month than they now pay.

Both GSEs have now paid the government the 10 percent compound rate of return required by the original senior preferred stock agreement, according to the R Street Institute. The think tank’s senior fellow, Alex Pollock, said it’s time to put the senior preferred stock purchase agreement to rest. Fannie just recently joined Freddie in this “10 percent moment.” He said because Treasury has received dividend payments from both Fannie and Freddie that equal the economic equivalent of repayment of the entire principal of their senior preferred stock, plus a full 10 percent yield, “it is now entirely reasonable for it to consider declaring the senior preferred stock retired.”

The Senate this week passed a package of amendments to the Dodd-Frank Act by a vote of 67-31, moving the regulatory reform debate to the House, where Republicans have pushed through a large number of more aggressive changes.

The Department of Veterans Affairs has issued new guidance on a number of topics, including foreclosure relief in disaster areas, property management and servicing, lender’s payment or credit of veterans’ costs, acceptance of properties, redemption procedures, and reconveyance disputes. VA has extended the moratorium on foreclosures in areas that suffered the brunt of hurricanes Harvey, Maria and Irma from 180 days to 270 days to give more time for distressed homeowners with a VA mortgage to recover their financial footing. VA also extended the rescission date of guidance regarding its reconveyance dispute process and servicer statutory redemption procedures from Jan. 1, 2018, to Oct. 1, 2020. VA issued additional servicing guidance on real estate-owned properties and direct loan portfolio (VA’s national portfolio), which is currently serviced by ...

The White House this spring is expected to officially nominate Michael Bright, acting president of Ginnie Mae, to formally become the agency’s chief, according to industry officials