Tag Archives: FHFA

While a new bill proposing the liquidation of the GSEs might have investors unsure about their future, analysts at Barclays insist there is little to worry about for the time being. The bill, authored by Sens. Bob Corker and Mark Warner (D-Virginia) and titled the ""Secondary Mortgage Market Reform Act of 2013,"" represents a major bipartisan step for housing finance reform. According to a discussion draft obtained by Bloomberg, the legislation would liquidate Fannie Mae and Freddie Mac within five years of its passage.

Refinance volume under the Home Affordable Refinance Program (HARP) stayed strong in March even as mortgage rates rose, the Federal Housing Finance Agency (FHFA) reported Wednesday. In March, the GSEs refinanced close to 100,000 loans through HARP, bringing the program total since the 2009 inception to nearly 2.4 million, according to the FHFA. The program continued to provide relief to underwater borrowers, who accounted for nearly half of all HARP refinances in Q1.

Shadow inventory held by the GSEs and HUD "vastly" outnumbers REO properties the groups maintain, according to a joint report from the Office of Inspector General for the Federal Housing Finance Agency and HUD. The report further warned HUD and the GSEs must pay close attention to shadow inventory, which threatens to increase their supply of REOs. For the GSEs, the ratio of shadow inventory to REO inventory was about 6-to-1, while shadow inventory for HUD was 19.9 times greater than REO inventory.

The Federal Housing Finance Agency (FHFA) and Citigroup have reached a settlement over allegations of fraud in the selling of $3.5 billion of mortgage-backed securities (MBS). A filing on Tuesday revealed FHFA had dropped its suit against the bank, having reached a settlement. A spokesperson for FHFA did not comment on the amount of the settlement or the terms, saying that it was ""satisfactory."" A spokesperson for Citigroup remarked only that the company is ""pleased to put this matter behind us.""

U.S. home prices appreciated at a strong pace in the first quarter as prices rose 1.9 percent from the previous quarter, the Federal Housing Finance Agency (FHFA) reported. The quarterly gain marks the seventh straight increase. Compared to the first quarter of 2012, prices were up by 6.7 percent, according to the FHFA's seasonally adjusted, purchase only House Price Index (HPI). From February to March, the index increased by 1.3 percent. FHFA also reported 41 states plus the District of Columbia experienced quarterly price gains.

Barclays forecast new non-agency RMBS issuance at $12 to $15 billion at the start of the year, and its latest research shows the market is on track to hit that mark. Contributing to that forecast are a few factors: First, Barclays notes, the capital costs of holding loans in portfolio will increase for many banks under Basel III, making securitization a more attractive proposition. Second, further hikes in guarantee fees (g-fees)--such as those mandated by the Federal Housing Finance Agency (FHFA)--could make for a more competitive private-label market.

Fannie Mae and Freddie Mac are offering the new Streamlined Modification Program to distressed borrowers before the effective date of July 1. As part of the program, Fannie Mae and Freddie Mac borrowers who are at least 90 days delinquent but no more than 720 days past due may be eligible for a modification that does not require the borrower to submit financial or hardship documentation.

Refinances through the government's Home Affordable Refinance Program (HARP) remained strong as mortgage rates stayed near record-low levels, according to the Federal Housing Finance Agency's (FHFA) most recent refinance report. In February, 97,738 Fannie Mae and Freddie Mac loans were refinanced under the program, bringing the total to 2.3 million since HARP's April 2009 inception. Underwater borrowers also continued to represent a large share total HARP refinance volume. Year-to-date through February, borrowers with LTVs beyond 105 percent accounted for nearly half of all HARP refinances.

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to limit future loan purchases to those that meet the Consumer Financial Protection Bureau's (CFPB) criteria for ""qualified mortgage"" loans. In a release, FHFA said that beginning January 10, 2014, the GSEs will no longer purchase loans subject to CFPB's ""ability to repay"" rule if those loans are not fully amortizing, have terms of longer than 30 years, or include points and fees in excess of 3 percent.

Without a government guarantee, Fannie Mae's and Freddie Mac's multifamily businesses would be less viable and ""have little inherent value,"" according to the Federal Housing Finance Agency (FHFA), the entities' conservator. As the FHFA works toward its goal of winding down the GSEs' presence in the market, the conservator required each GSE to determine whether its multifamily business could operate without a government guarantee. Both GSEs suggest without a government guarantee, their multifamily units would not be able to support affordable housing programs.