Fannie Mae's gross mortgage portfolio has now expanded in two of the last three months following an increase at a compound annualized rate of 7.8 percent in March, according to Fannie Mae's March 2015 Monthly Volume Summary released Thursday.
Read More »GSEs Would Need Up To $157 Billion Bailout in Economic Downturn
The Dodd-Frank Act Stress Tests (DFAST) – Severely Adverse Scenario report indicated that the two GSEs would need a second taxpayer bailout, this time of up to $157.3 billion, under hypothetical adverse economic conditions that included a rise in the nation's unemployment level up to 10 percent by the middle of 2016; a decline in real GDP as large as 4.5 percent by the end of 2015 before recovery begins in 2016; and long term interest rates drop significantly while short-term rates remain near zero.
Read More »Will Banks Benefit From Recent Non-Performing Loan Sales by GSEs?
While the demand for high-quality mortgage-backed securities has been slow since the housing crisis, Fitch said that more major institutional buyers that are hungry for new, higher-yielding investment opportunities have emerged as suitors for bulk NPL pools. Previously, distressed mortgage buyers tended to be specialized alternative investment firms.
Read More »Treasury: Taxpayer Bailout of Fannie Mae and Freddie Mac Was Not an ‘Ordinary’ Loan
DeValk noted that when Fannie Mae and Freddie Mac were taken into conservatorship by the FHFA in September 2008, the GSEs agreed to pay quarterly fixed dividends to Treasury that were equal to 10 percent of the total amount of outstanding funding that Treasury had provided for the enterprises.
Read More »FHFA Reiterates Vow to Protect GSE-Backed Loans From ‘Super-Priority’ Liens
Several states currently allow HOAs to enforce the super-priority lien status and foreclose on a home non-judicially when the owner falls behind on his or her HOA dues—thus extinguishing the note held by the mortgagee, which in many cases suffers losses totaling hundreds of thousands of dollars as a result.
Read More »Fannie Mae’s 2015 Economic Forecast Unchanged Despite Q1 Setback
In the ESR's April 2015 Economic Outlook released Monday, the projection for economic growth in 2015 held steady at 2.8 percent despite a downward adjustment for Q1 growth from the prior forecast. However, Fannie Mae is expecting some volatility in financial markets due to the Federal Reserve's expected interest rate increase later in the year.
Read More »FHFA: Current G-Fees Are at an Appropriate Level, Only Modest Adjustments Needed
When considering adjustments to G-fees for certain categories of loans, FHFA took into account the decision (also announced Friday) to enhance the eligibility standards for mortgage insurance companies. Overall, the FHFA said, the modest changes being made to the upfront G-fees are revenue neutral and will mean little or no change for Fannie Mae and Freddie Mac.
Read More »FHFA Launches Neighborhood Stabilization Pilot Program in Illinois
The Neighborhood Stabilization Initiative is a set of strategies that aim to help delinquent borrowers avoid foreclosure and create a more efficient disposition path for foreclosed properties that will first be introduced in Cook County, Illinois. The housing market in the county, which contains Chicago, took a precipitous dive at the end of 2008 that took four years to reverse, according to data from DePaul University.
Read More »With the Announcement of Fannie Mae’s First Bulk NPL Offering, More Sales Could Be Coming
Fannie Mae just announced last week that it is in the process of marketing its first-ever bulk sale of non-performing loans. Bids are due for this bundle of NPLs, worth about $786 million, on May 6 and the sale is expected to close in mid- to late June – but there could be more similar sales coming later.
Read More »Study Says Homebuyers Should Do Their Homework When Shopping for a Mortgage
The authors found that about 31 percent of first-time buyers took such advice, regardless of income, while more than half of those who earn less than $75,000 a year sought referral advice. About 7 percent above that income line sought advice.
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