Tag Archives: Fannie Mae

Following the announcement that CFO Susan McFarland will be departing by the end of June, Fannie Mae appointed David C. Benson as EVP and new CFO. Benson will take over McFarland's position following the filing of the company's annual report on Form 10-K for 2012, Fannie Mae said in a filing with the Securities and Exchange Commission (SEC).

Fannie Mae unveiled 2012 program results for the Servicer Total Achievement and Rewards (STAR) scorecard. The STAR program was introduced to recognize Fannie Mae servicers and establish servicing standards. ""STAR is one of the many ways that we are helping servicers improve their work with homeowners,"" said Leslie Peeler, SVP of Fannie Mae's national servicing organization. The final STAR Program designations, set to be released in April, will evaluate customer service and foreclosure prevention, as well as operational assessments of the servicer's processes, policies, and capabilities.

Federal Housing Finance Agency Acting Director Edward DeMarco released his 2013 priorities for the GSEs Monday. DeMarco anticipates the gradual reduction of the GSEs' presence in the market, and this year's goals largely build on last year's. ""Despite some signs of normalization in the housing market, our Nation finds itself in the uncomfortable position of having over 90 percent of new mortgage originations supported by the Federal government,"" DeMarco said. As such, FHFA's goals for this year expand on last year's three main goals of building an infrastructure for the future of the secondary market, contracting the GSEs' role in the market, and maintaining the GSEs' foreclosure prevention and credit availability efforts.

As the private sector struggles with regulatory uncertainty, Fannie Mae and Freddie Mac will continue to maintain their dominant role in the housing market, according to a report from Fitch Ratings. Since the GSEs act as key players in the market's fragile recovery, political motivation for far-reaching GSE reform has been limited, the rating agency explained. Although regulators and politicians have emphasized the need for the private sector capital to enter the mortgage market, Fitch said ""results have been disappointing.""

While most representation and warranty guidelines for recent residential mortgage-backed securities (RMBS) have been substantially stronger than observed in pre-crisis transactions, according to Fitch, the ratings agency has begun to encounter some proposals that fall short of the industry's recently-enhanced standards. Fitch is a strong proponent of the American Securitization Forum's Project Restart, which created a rep and warranty framework following the housing crisis. According to Fitch, the framework offers ""a high standard that provides the most assurances about loan origination and underwriting quality."" Some of the most recent RMBS transactions the agency reviewed stray from these guidelines and are ""weak,"" according to Fitch.

Even with tax hikes and spending cuts creating a significant headwind to the economy, Fannie Mae's Economic & Strategic Research Group is maintaining its outlook for slow and steady growth in 2013. On the housing front, continued lean inventory and the increase in rate of household formation bode well for homebuilding activity and residential construction employment, the outlook says, giving housing an opportunity to contribute more to economic growth. However, one unknown variable on the supply side is how many underwater borrowers are waiting to list their homes.

As of November 2012, Fannie Mae and Freddie Mac have refinanced more than 2 million loans through the Home Affordable Refinance Program (HARP), the Federal Housing Finance Agency (FHFA) reported Tuesday. According to FHFA, nearly 130,000 homeowners refinanced their mortgages through HARP in November alone, making it the second biggest month for HARP activity in 2012 (behind June's 137,000 HARP refinances). In addition, HARP volume represented 23 percent of total refinance volume in November.

Real estate professionals who find themselves stuck in the short sale process can turn to a recently expanded tool from Fannie Mae. The HomePath for Short Sales tool can be used by agents to escalate the short sale process. The tool is for loans owned by Fannie Mae. When agents escalate a case, Fannie Mae will contact the appropriate agent or servicer to address the challenge that may be stalling the process.

In Fannie Mae's housing survey for January, consumers maintained their expectation for growth in home and rent prices and also expressed more optimism toward the economy. The January 2013 survey found 41 percent of consumers believe homes prices will rise in the next 12 months, down from 43 percent in December, but up from 30 percent a year ago. As prices continue to climb, more consumers also said now is a good time to sell. The percentage rose to 23 percent in January, up from 21 percent in December and 11 percent a year ago.

Fannie Mae's CFO is planning to retire from the company by the end of the June, the GSE said in a filing with the Securities and Exchange Commission (SEC). According to the filing, Susan McFarland, who also serves as EVP at Fannie Mae, ""notified the company that she will retire ... after a transition period that will begin on the effective date of the appointment of a new Chief Financial Officer by our Board of Directors and end no later than June 30, 2013.""