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...
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...
I’ve been on the road for the past three weeks, mostly performing reviews of mortgage bankers for warehouse lenders. I am happy to report that all channels of origination are doing well. I’m no longer hearing the grumblings we heard earlier in the year as record low rates have sparked a mini...
Freddie Mac has announced that it will be requesting an additional $1.8 billion cash infusion from the Treasury Department based on the results of its Second Quarter 2010 financial statement released on Tuesday. The government sponsored enterprise (GSE) reported a net loss attributable to common stockholders...
The conservator of Freddie Mac and Fannie Mae has ordered the two government sponsored enterprises (GSEs) to take steps to delist their respective common and preferred stocks from the New York Stock Exchange. The stocks will also be delisted from any other national securities exchange and but will continue...