Tag Archives: Freddie Mac

Freddie Mac increased its efforts to support greater transparency through the release of loan-level data for its single-family mortgages. The dataset includes about 15.7 million fully amortizing 30-year fixed-rate single-family mortgages originated between 1999 to 2011, which represents about 53 percent of the GSE's mortgage acquisitions for that period.

While a few stumbling blocks remain, Freddie Mac insists the economy is finally headed from gloom to bloom this spring. The GSE's U.S. Economic and Housing Market Outlook for March shows low mortgage rates, rising prices, and gradually improving consumer confidence will bolster home sales as the homebuying season starts. Compared to 2012, experts at Freddie Mac expect home sales to increase 8 to 10 percent this year, coming to about 5.4 million units sold by year's end.

After spiking last week, mortgage rates took a dive this week as tension broke out in Europe over the financial crisis in the island country of Cyprus. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.54 percent (0.8 point) for the week ending March 21, down from 3.63 percent last week. Last year at this time, the 30-year FRM averaged 4.08 percent; it has remained below the 4.00 percent mark for a full year now.

A new report from a government watchdog accused Freddie Mac, its servicers, and the Federal Housing Finance Agency (FHFA) of not meeting requirements when handling and resolving escalated consumer complaints. According to a report from the FHFA Office of Inspector General (OIG), Freddie Mac and eight of its largest servicers, which service 70 percent of the GSE’s mortgages, received over 34,000 complaints that became escalated cases during a 14-month time period ending November 30, 2012. After tracking the escalated cases, FHFA OIG found seven out of the eight Freddie Mac servicers did not resolve all escalated cases within the 30-day requirement.

Amendments to the Senior Preferred Stock Purchase Agreement (PSPA) between Treasury and the GSEs, agreed to in August 2012 may lead to faster and greater returns to taxpayers but could also potentially leave the enterprises with largely illiquid portfolios, according to a report from the Federal Housing Finance Agency's Office of Inspector General (FHFA OIG). The amendments addressed several terms of the PSPAs. One of the most notable changes was the change in dividend structure.

The story of the London Interbank Offered Rate (Libor) scandal added another chapter in March as Freddie Mac brought suit against Barclays, Bank of America, Citibank, and several other institutions for investment losses related to alleged rate-rigging practices. The GSE filed March 14 against a dozen banks for ""punitive damages to the extent allowable by law"" as well as for the cost of attorneys and legal fees. A number for damages sought was not specified.

Speaking before the House Financial Services Committee at a hearing Tuesday morning, Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco presented his take on sustainable housing finance and what the future of housing finance might look like. DeMarco began his testimony at Tuesday's hearing, ""Sustainable Housing Finance: An Update from the Federal Housing Finance Agency on GSE Conservatorships"" by reiterating his goals for the GSEs this year. He then went on to describe three possible scenarios for the future of the housing finance system and the government's role in that system.

Three industry analysts gave testimony before a Senate committee on housing finance reform Tuesday. While all three experts expressed support for more private capital and less government involvement, the proposed degrees of government support varied. Mel Martinez, co-chair of the Bipartisan Policy Center's Housing Commission, recommended the elimination of the GSEs over a period of about 5-10 years and the creation of a limited, government guarantee called the ""Public Guarantor.""

A coalition of nine state attorneys general is petitioning the national government to replace Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco. The coalition charged DeMarco with positioning Fannie Mae and Freddie Mac as a ""direct impediment to our economic recovery"" and called for his replacement in a joint letter to the president, the Senate majority leader, and the Senate minority leader Friday. The attorneys' general complaint stems from DeMarco's refusal to allow the GSEs to engage in principal reductions for struggling and underwater homeowners.

Zillow and Pulsenomics surveyed a nationwide panel of 118 economists, real estate experts, and investment and market strategists to get their thoughts on future home values and housing market policies. On average, the panel forecasts price growth of 4.6 percent in 2013 and 4.2 percent in 2014. More moderate growth averaging 4.1 percent is expected to follow into 2017. The panel also responded to questions on refinance options for underwater borrowers, with the majority expressing support for proposals that would allow certain underwater borrowers to refinance