Recently, an article was published by the Chicago Tribune discussing the work of my Office, the Federal Housing Finance Agency (FHFA) Office of Inspector General (FHFA-OIG). The piece, titled ""Mortgage cops taking tough stance"" (Sept. 13, 2012), implies that my Office is going to lock up anyone who strategically defaults on their mortgage. This is not the case, and I'd like to put in context what we are and are not doing.
Read More »FHFA Index Shows Home Price Gains in July
Homes with mortgages owned by Fannie Mae or Freddie Mac gained in prices both monthly and yearly in July, according to the FHFA monthly House Price Index (HPI). In July, prices rose 0.2 percent on a seasonally adjusted basis from June and rose 3.7 percent from July 2011. The index currently sits 16.4 below its April 2007 peak.
Read More »Mortgage Lenders’ Next Crisis: Insurers’ Denials of Repurchase Demands
Mortgage lenders who survived the residential mortgage meltdown must now brace for repurchase demands from their third-party investors  and for the refusal of their liability insurers to defend and indemnify them against these demands. Mortgage lenders should be prepared to protect themselves against such denials of coverage.
Read More »Freddie Mac Warns Servicers of Suspicious Invoices
Freddie Mac issued a noticed of potentially fraudulent invoices in a bulletin to sellers and servicers on Monday.
Read More »GSEs Work with More than 300 ‘High-Risk’ Counterparties: Report
As of the third quarter of 2011, more than 300 sellers and/or servicers (counterparties) were placed in the high-risk category by Fannie Mae and Freddie Mac, according to a report from the FHFA Office of Inspector General. In addition, the report stated the GSEs ended business relationships with more than 40 servicers/sellers on their high-risk watch lists since 2007.
Read More »New York Allots $60M for Legal Services to Prevent Foreclosures
New York Attorney General Eric T. Schneiderman announced his state will spend $60 million on housing counseling and legal services for struggling homeowners. A portion of the funds are a result of the historic $25 billion national mortgage settlement, which was reached in February between the five largest mortgage servicers and state and federal officials and 49 states.
Read More »Four Arrested Over Real Estate Scheme in California
Four suspects were arrested and charged with securities fraud, conspiracy and elder abuse for their roles in a Ponzi scheme that cost investors $2.3 million, California Attorney General Kamala D. Harris announced Friday in a release.
Read More »BLS Breaks Down Unemployment Stats, West Region Still Hurting Most
Across the United States, 26 states recorded unemployment rate increases in August, while 12 states and the District of Columbia posted decreases. BLS also reported that non-farm payroll employment increased in 28 states, with Texas, Florida, and Missouri leading the pack in month-over-month increases. Meanwhile, Virginia, D.C., and Washington led the 21 states that saw a decline in employment. Colorado was the only state with no changes reported.
Read More »FDIC to Hold Workshops for Asset Purchasers, Investors
FDIC announced Friday it is conducting a series of outreach workshops to provide information on investing in or purchasing assets retained from failed financial institutions.
Read More »Basel III Will Increase Mortgage Costs, Limit Riskier Lending: Fitch
Proposals found in Basel III to raise capital requirements for mortgage loans would increase borrower costs for traditional mortgages and make nontraditional mortgages less available at regulated banks, according to a commentary from Fitch Ratings.
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