Originally published in the December 2010 issue of Asset Securitization Report There is a reasonable chance that the incoming Congress will finally attempt to tackle the contentious issue of GSE reform. However, radical changes to the GSEs (with some discussion of eliminating them entirely) have the...
Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, characterized the recent housing collapse as a classic asset-price bubble spurred by low interest rates, easily accessible and often-unsound financing, over-optimism about housing price trends, and a high - and difficult to control...
I've been very busy over the past few weeks answering questions regarding the foreclosure mess and the accompanying “robo-signing” dilemma. What surprises me are not the concerns over systematic risks surrounding the issue or whether or not fraud has occurred, but the fact that everyone I’ve...
Our mortgage banking clients continue to experience delays in the loan purchasing process. This issue reflects an increase in refinance application volume. The uptick in production activity combined with heightened compliance requirements and a greater number of investor overlays has clogged back shop...
The Federal Housing Finance Agency (FHFA) has released projections showing possible future financial performances of Fannie Mae and Freddie Mac and the potential draws from the U.S. Treasury under terms of the Preferred Stock Purchase Agreements (PSPAs). To date Fannie Mae and Freddie Mac have drawn...
Yesterday I received this note from an industry veteran: "In reference to your statement 'The entire mortgage business is bruised and battered,' I have to take issue with that characterization. Yes, the industry is certainly contending with a number of issues, several of which are complex and intimidating...
FYI: Fannie and Freddie have issued policy review directives to their seller/servicers on following proper procedure in the foreclosure process. While I don't see these bulletins as anything besides another wake up call for back shop operations managers and servicing staff, we can't forget the PR mess...
H.R. 3081 : Making Continuing Appropriations for Fiscal Year 2011, and For Other Purposes, passed the House of Representatives this morning. Buried in that legislation was authorization to extend current loan limits for mortgages provided through Fannie Mae, Freddie Mac, and the Federal Housing Administration...
Two high ranking officials testifying before congress this week made it clear that, when it comes to the future of Freddie Mac and Fannie Mae, the Departments of Treasury and Housing and Urban Development are reading from the same play book, Federal Housing Finance Agency Acting Director Edward J DeMarco...
The Federal Housing Finance Agency (FHFA), conservator of Freddie Mac and Fannie Mae (the Enterprises) has established its final housing goals for the Enterprises in 2010-2011. FHFA is required by the Housing and Economic Recovery Act of 2008 (HERA) to set such goals for targeted segments of the mortgage...