The conservatorships were required by law to put Fannie Mae and Freddie Mac in a “sound and solvent condition” but this focus at times conflicted with other public policy objectives, such as the aggressive enforcement of the GSEs of “representations and warranties” whereby the firms “put back” large volumes of defaulted mortgages to their originators, according to the authors.
Read More »Government’s Control of Fannie Mae and Freddie Mac Unlikely to Change, Analyst Says
Swann and his team wrote in a report to clients that the impasse among lawmakers as to the future of the GSEs, the fact that Fannie Mae and Freddie Mac have been profitable since 2012, and the near recovery of most housing markets have made the privatization of the GSEs or any type of reform unlikely for the foreseeable future.
Read More »KBW lifts MGIC to Outperform, Delinquent Loan Inventory Drops 56 Percent in 3 Years
Insurer MGIC, which provides mortgage insurance through its principal subsidiary Mortgage Guaranty Insurance Corp., saw its stock rise 2 percent in morning trading after Keefe, Bruyette & Woods (KBW) analysts gave the company a vote of confidence in a new report. KBW raised MGIC to “outperform” from market perform on Monday.
Read More »Fannie Mae Offers Three Pools of NPLs totaling $1.2 Billion in UPB
Fannie Mae's NPL transactions require the loan owner to market the property exclusively to owner-occupants and non-profits before offering it to investors when foreclosure cannot be prevented.
Read More »GSEs Issue Updates to Mortgage Repurchase Guidelines
The new policies, sent in a letter to sellers and servicers, are expected it go into effect January 1, 2016, at the direction of the Federal Housing Finance Agency (FHFA).
Read More »Fannie Mae, Freddie Mac Bring Foreclosure Prevention Total to 3.56 Million
With July's total of nearly 20,000 foreclosure prevention actions, the Enterprises have now completed 3.56 million such actions since the start of the conservatorship in September 2008, according to FHFA.
Read More »IG Condemns FHFA’s Review of GSE Budgets
According to a recent report from the FHFA Office of the Inspector General, however, the Agency's budget review and approval process has fallen short of achieving that stated purpose due to a number of factors that include late timing, cursory-level analysis, and inadequate resources.
Read More »Fannie Mae, Freddie Mac Combined Income Spikes in Q2
REO inventory for the GSEs totaled about 88,000 at the end of Q2, a decline of 14 percent from the end of Q1 (about 102,000) and 34 percent from the end of Q2 2014 (134,000), according to FHFA.
Read More »Share of Mortgage Delinquencies Triggered by Unemployment is Receding
For the first half of 2015, approximately 38 percent of mortgage delinquencies were brought about by job loss or some type of income curtailment, according to an analysis of mortgages guaranteed or owned by Freddie Mac.
Read More »Fannie Mae’s Mortgage Portfolio Contracts at a Rate of Nearly 20 Percent
For the first eight months of 2015, Fannie Mae's gross mortgage portfolio has contracted at an annualized rate of 12.6 percent; the only two months that saw expansion were January and March at a rate of 3.5 percent and 7.8 percent, respectively.
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