Tag Archives: Freddie Mac

Fannie Mae and Freddie Mac are offering a relief program to victims of Superstorm Sandy who were current on their mortgage before the storm, Governor Andrew M. Cuomo of New York announced in a release Thursday. According to the release, the program is in response to letters the New York State Department of Financial Services (DFS) sent in April, which urged for a change in what Cuomo's administration called ""restrictive"" guidelines that could lead to a spike in mortgage payments for Sandy victims.

Mortgage rates continued to creep down near record lows this week, according to reports from Freddie Mac and Bankrate.com. Rates fell all around in Freddie Mac's Primary Mortgage Market Survey for the week ending May 2. According to the weekly survey, the 30-year fixed-rate mortgage (FRM) averaged 3.35 percent (0.7 point) this week, down from 3.40 percent last week. The all-time low average is 3.31 percent, set the week of November 21, 2012. For the second week in a row, the 15-year FRM reached a new low, falling to 2.56 percent (0.7 point).

In a notice Thursday, Freddie Mac encouraged servicers to prepare for new requirements for default-related legal services that will take effect in less than a month. Under the new requirement, Fannie Mae and Freddie Mac servicers must select qualified law firms by June 1 to handle all new referrals of default-related legal services, such as foreclosures, loss mitigation, bankruptcy, and related litigation.

In the Federal Housing Finance Agency's (FHFA) Conservatorship Priorities for 2013, delivered in early March, Acting Director Edward DeMarco discussed his goal of creating a common securitization platform for the GSEs. As FHFA and the GSEs take the first steps toward developing this platform, Freddie Mac's SVP of conservatorship and corporate initiatives, Stephen Clinton, outlined some of the positive impacts the platform could have on the market.

Freddie Mac's weekly Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 3.40 percent (0.8 point) for the week ending April 25, down slightly from 3.41 percent last week. Last year at this time, the 30-year fixed averaged 3.88 percent. Bankrate.com also reported its sixth straight week of declines. According to the site's weekly national survey, the benchmark 30-year fixed rate retreated to a four-month low of 3.57 percent

Starting July 1, large numbers of non-paying borrowers will have the opportunity to modify existing mortgages through a more streamlined process. This sounds like a good way to reduce foreclosures and prop up home prices, but as we will shortly see the proposed program is oddly risky and likely to encourage additional defaults. The program is open to borrowers who have already modified their loans once, perhaps a few years ago when rates were higher. This, at least, is a good idea. So what's the big difference between the new program and the modifications offered previously?

Freddie Mac announced it is now offering a free, online CreditSmart tutorial to provide working families and new or inexperienced borrowers with basic sound information about building savings, personal credit, and making wise financial choices.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent (0.7 point) for the week ending April 18, down from last week, when it averaged 3.43 percent. Last year at this time, the 30-year fixed averaged 3.90 percent. Meanwhile, Bankrate.com's weekly survey showed yet another three-month low for fixed rates. According to the site, the benchmark 30-year FRM average retreated to 3.61 percent from 3.64 percent previously.

While the March jobs report delivered disappointing numbers, the strength in construction employment offers encouragement, Freddie Mac explained in its economic and housing outlook report for April. Construction jobs have been ""accelerating"" in recent months, with net construction job growth representing 15 percent of all job gains over the last six months, the report stated. ""Construction employment is showing signs of life, which should help to improve the overall macroeconomic picture,"" said Frank Nothaft, Freddie Mac VP and chief economist.

Unless the GSEs change their restrictive guidelines, Superstorm Sandy victims could face a hefty balloon payment or a spike in their monthly mortgage payments, according to a release from Governor Andrew M. Cuomo of New York. According to Cuomo, Sandy victims who receive forbearance on their mortgage payments could face an immediate balloon payment or see a spike in their monthly mortgage payments.