News

Acknowledging economic activity decelerated somewhat over the first half of this year and growth in employment has been slow in recent months, the Federal Open Market Committee nonetheless decided Wednesday to take no new actions to stimulate growth. Concluding a two day meeting the FOMC instead said it would maintain its low interest rate policy and continue previously announced programs to reinvest proceeds of maturing Treasury securities it already holds and extend the average maturity of its portfolio.

Freddie Mac released the results of its second quarter refinance analysis Wednesday, revealing that homeowners who refinance continue to strengthen their housing situations. Freddie Mac's report showed that 81 percent of homeowners who refinanced their first-lien home mortgage either maintained the same loan amount or lowered their principal balance in the year's second quarter.

In a long-running debate, Edward DeMarco, acting director of the Federal Housing Finance Agency, stated again this week that he does not support principal reductions and does not endorse their use at Fannie Mae and Freddie Mac. After stating his position, he immediately faced criticism and opposition from a broad spectrum of individuals, especially throughout the government. However, DeMarco's decision received a few words of praise as well.

Shaken up by the bankruptcy of Residential Capital (ResCap), Ally Financial Inc. (Ally) reported a net loss of $898 million for the second quarter of 2012. Ally stated its second quarter results were adversely affected by a $1.2 billion charge resulting from Rescap's Chapter 11 bankrupty protection, which was announced May 14.

Starting September 1, Fannie Mae and Freddie Mac will lower their standard modification interest rate from 4.625 percent to 4.25 percent. The GSEs stated the rates are adjusted based on market conditions.

Fannie Mae announced Wednesday that it is opening an extension of its Los Angeles Mortgage Help Center. The Los Angeles Mortgage Help Center serves the Inland Empire region as part of the GSE's nationwide effort to educate families about their options and tools for avoiding foreclosure.

A new asset management firm announced plans to invest over $1 billion into distressed properties and convert them into rental homes. Sylvan Road Capital, LLC, which launched Wednesday, was co-founded by a former head of U.S. housing strategy at Morgan Stanley, Oliver Chang. According to a company release, the $1 billion will be invested over the next two years, and Sylvan Road will acquire over $300 million in distressed single-family homes through initial capital from an unnamed private equity firm.

Digital Risk announced Wednesday the launch of Veritas, a mortgage analytics platform built as a more reliable method for risk analysis.

While the month-month Case Shiller Home Price Index shot up in May a record high increase (2.2 percent) in the 20-city index and a near-record (2.2 percent increase) in the narrower 10-city index it also suggested employment has less to do with the change in home prices than might otherwise have been thought.

Nationwide Title Clearing, Inc. (NTC) announced a new training program it developed as the company anticipates changing compliance requirements.