The first quarter of 2015 experienced slow economic growth due to temporary factors, but the economy is expected to make a comeback starting in the second quarter, according to Fannie Mae's Economic & Research Strategic Research Group's March 2015 Economic Outlook released Monday. Notably, the slower economic growth did not deter Fannie Mae's prediction that the economy will drag housing upward in 2015. The temporary factors that slowed economic growth include a drawdown in inventory, unusually high snowfall in some parts of the country, and the West Coast port slowdown.
Fannie Mae expects the reducing of those factors in the second quarter combined with upbeat labor market conditions and positive consumer and business fundamentals to push GDP growth to 2.8 percent in 2015, ahead of 2014's pace of 2.4 percent. Fannie Mae chief economist Doug Duncan indicated in the report that the Agency's forecast for housing is little changed from the previous forecast, in which he stated that stronger housing recovery will follow stronger wage growth, which he expects to occur.
In a letter to 119 trustees and master servicers released Monday, Ocwen Financial responded to criticism of its mortgage servicing practices made by a group of residential mortgage-backed securities investors in a notice issued in January. Ocwen said it has yet to receive proper data to support claims made that the company had "breached the standard of servicing called for by the agreements." Ocwen claims the notice is a part of a long campaign by the RMBS investors to force more home foreclosures and fewer loan modifications.