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Tag Archives: Freddie Mac

Fitch Finds Weaknesses in Recent RMBS Transactions

While most representation and warranty guidelines for recent residential mortgage-backed securities (RMBS) have been substantially stronger than observed in pre-crisis transactions, according to Fitch, the ratings agency has begun to encounter some proposals that fall short of the industry's recently-enhanced standards. Fitch is a strong proponent of the American Securitization Forum's Project Restart, which created a rep and warranty framework following the housing crisis. According to Fitch, the framework offers ""a high standard that provides the most assurances about loan origination and underwriting quality."" Some of the most recent RMBS transactions the agency reviewed stray from these guidelines and are ""weak,"" according to Fitch.

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Fixed Rates Show Little Movement Over the Week

Fixed mortgage rates moved up just a smidgen this week, according to surveys from Freddie Mac and Bankrate.com. According to Freddie Mac's Primary Mortgage Market Survey, the average interest rate for a 30-year fixed-rate mortgage (FRM) was 3.56 percent (0.8 point) for the week ending February 21, up from 3.53 percent last week. Last year at this time, the 30-year FRM averaged 3.95 percent. Meanwhile, Bankrate's findings showed the 30-year fixed rate rising a single basis point to 3.80 percent.

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Freddie Mac: Rental Sector Shows Growth, but Lacks Affordability

In a blog post, a Freddie Mac executive revealed more than one-third of U.S. households are renters, the largest share since 1997, yet adequate, affordable rental housing is still out of reach for many. According to David Brickman, SVP of multifamily at Freddie Mac, the nation has seen 5.4 million new renter households between 2004 and 2011, and growth is expected to continue. At the same time, Brickman noted more than half of all renters in the country exhaust more than 30 percent of their income on housing.

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GSEs Refinance More than 2M Loans Through HARP

As of November 2012, Fannie Mae and Freddie Mac have refinanced more than 2 million loans through the Home Affordable Refinance Program (HARP), the Federal Housing Finance Agency (FHFA) reported Tuesday. According to FHFA, nearly 130,000 homeowners refinanced their mortgages through HARP in November alone, making it the second biggest month for HARP activity in 2012 (behind June's 137,000 HARP refinances). In addition, HARP volume represented 23 percent of total refinance volume in November.

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Fixed Rates Stand Still in Freddie Mac’s Survey

Fixed mortgage rates continued to hold steady this week, according to data from Freddie Mac and Bankrate.com. Freddie Mac's Primary Mortgage Market Survey for the week ending February 14 showed no weekly changes in fixed rates: The 30-year fixed averaged 3.53 percent (0.8 point), while the 15-year average held at 2.77 percent (0.8 point). Meanwhile, Bankrate reported slight increases in fixed rates, though any movement was minor. According to Bankrate's survey, the average 30-year fixed-rate mortgage had a rate of 3.79 percent.

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Freddie Mac: Housing Still Has ‘Substantial’ Room to Grow

Housing may not be where it used to be, but on the upside, Freddie Mac suggested this indicates there's still plenty of room for the industry to grow. ""[T]he level of housing activity is still near historic lows. This means that there is still room for substantial growth in housing and housing-related industries before we return to a more normal environment,"" Freddie Mac stated in its latest economic and housing outlook. This optimistic viewpoint was reflected in the GSE's forecast for housing in 2013, especially for housing starts.

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Freddie Mac Introduces New Board Member

Freddie Mac's board has a new member. The company announced the election of Steven W. Kohlhagen, Ph.D. to its board of directors. Kohlhagen brings more than three decades of experience with him.

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Fixed Rates Barely Budge After Spiking

After spiking last week, fixed mortgage rates held their ground this week as the economy showed signs of stability, at least for the near future. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.53 percent (0.8 point) for the week ending February 7, unchanged from last week. This time last year, the average FRM was 3.87 percent. Bankrate reported similar findings: The 30-year fixed average was 3.76 percent, down a single basis point from last week.

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Recent Refis Reduced Interest Rates by Record Amount

Homeowners who refinanced their mortgage loans in the fourth quarter of 2012 reduced their interest rates by an average of 33 percent, a record savings not seen in 27 years of observance, according to Freddie Mac. ""On average, borrowers who refinanced reduced their interest rate by about 1.8 percentage points,"" said Frank Nothaft, VP and chief economist at Freddie Mac. This translates to about $3,600 in annual savings on a $200,000 loan, according to Nothaft.

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