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After a week that saw mortgage rates fall to new historic lows , large numbers of American homeowners remain unable to refinance their higher rate mortgages and take advantage of low rates due to acollapse in home values that has left upwards of 23% of homeowners with negative equity in their homes....
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Opening today’s paper to more reports about the apparent processing problems involving foreclosures, I was struck by the near total absence of any discussion concerning ways to constructively address this dilemma. Instead of framing the discussions in the useful context of “root cause”...
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The Mortgage Bankers Association (MBA) has issued a blueprint for keeping Ginnie Mae and FHA "available and relevant into the future." Citing the dangerously low levels of FHA's capital reserves as revealed last fall and the increased reliance of the housing finance system on FHA guarantees, MBA convened...
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The proposed regulatory reform legislation recently agreed to by the House and Senate conferees will place more demand on the FHA and Ginnie Mae programs. Exempting FHA, VA and Rural Housing from the “qualified test” means there will be no risk retention requirements for mortgage originators...
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"Reform is coming," according to a Treasury Department official who spoke this week to the National Policy Conference 2010 held by the Mortgage Bankers Association in Washington, DC. Michael S. Barr, Assistant Secretary for Financial Institutions, recapped events leading up to the collapse...
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I was reminded that 70% of the US economy is propelled by consumers, all consumers. Last night, after giving a speech to some UC Berkeley econ students, I was in a book store and the gal in front of me asked the clerk, "Do you have a book on 'Karmageddon'? Its like, when everybody is sending...
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was shutting down for the day when I saw this : Obama Administration Seeks Public Input on Reform of the Housing Finance System WASHINGTON - The Obama Administration today released questions for public comment on the future of the housing finance system , including Fannie Mae and Freddie Mac, and the...
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In a recent Voice of Housing post , I lamented the fact that there seems to be shockingly little public debate underway concerning the future of the US Housing Finance Industry. I ended that post with the question ... in the industry's future form, is there any role left for the GSEs, Fannie Mae...
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The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the five trading days between August 13 and August 19, the Federal Reserve purchased a gross total of $26.640 billion agency MBS. After subtracting sales (providing liquidity/the roll) the Fed's...
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Curt, As I mentioned in another thread, the interest rate on the underlying loans in a MBS is typically around 0.5% higher than the pass-through coupon rate. This 1/2% difference is the servicing and guaranty premium. The guaranty premium charged by Ginnie Mae on a Ginnie I pool is .06% leaving the lender...