Tag Archives: Fannie Mae

Though the Great Recession officially ended three years ago, low aggregate income is keeping Americans from climbing out of the income slump that resulted. While real average earnings (per person) trended downward or stayed flat during the previous four business cycles, Fannie Mae's Economic & Strategic Research group found that average earnings actually increased from pre-recession levels during the Great Recession.

Fannie Mae and Freddie Mac new representations and warranty guidelines for lenders Tuesday to clarify lenders' risk regarding repurchase claims and define steps lenders can take to challenge repurchase claims they feel are without grounds. Under the new guidelines, if a loan is current for 36 consecutive months, lenders ""will be relieved of certain repurchase obligations,"" according to the Federal Housing Finance Agency, regulator of Fannie Mae and Freddie Mac.

According to the GSE's August 2012 National Housing Survey, consumers maintain a cautious but improving view of homeownership and the housing market. The average home price change expectation is 1.6 percent, mostly consistent with July's results and down from a June high of 2.0 percent. Meanwhile, 11 percent of those surveyed say home prices will go down in the next year, holding steady at the lowest level since the survey began in 2010.

After much anticipation, FHFA announced the first winning bidder for its REO bulk sale. San Diego-based Pacifica Companies, LLC, purchased 699 Fannie Mae properties in Florida through the REO pilot initiative. Out of the 699 properties, 506 were occupied units. In a release, the agency stated it will announce the winning investors for properties in other areas in the coming weeks when the transactions close.

To repair, or not to repair. That was the question posed to a number of panelists Thursday morning at the Five Star Conference and Expo. The panel featured a discussion between GSE and field asset representatives as they tried to help brokers and servicers tackle a common issue: Whether or not it's worth the investment to repair a home not in showcase condition.

Before the end of this year, Fannie Mae and Freddie Mac will raise guarantee fees (g-fees) on single-family mortgages by an average of 10 basis points. On Friday, FHFA announced it has directed Fannie Mae and Freddie Mac to increase g-fees as a step toward encouraging more mortgage market participation from private firms. The increase are scheduled to take effect on December 1 for loans exchanged for mortgage-backed securities and for loans sold for cash, the increases are scheduled for November 1, 2012.

Homeowners and officials in held a town meeting Thursday in Akron, Ohio, to discuss the impact of the housing crisis on their communities. The event, called #MyHomeMyVote, was designed to put the housing crisis and voters' concerns at the forefront of the wave of issues surrounding this year's election season.

Massachusetts attorney general Martha Coakley issued a letter Thursday to Fannie Mae, Freddie Mac, and their conservator, FHFA, reminding the agency and mortgage giants that they are required to offer reasonable loan modifications in the state and urging flexibility on principal reductions. In a letter addressed to FHFA acting director Edward DeMarco, Coakley outlines a law recently passed in Massachusetts that requires creditors to ""make commercially reasonable efforts to achieve a commercially reasonable loan modification.""

Fifth Third Bank outshined all other servicers in Fannie Mae's Servicer Total Achievement and Rewards (STAR) Program in 2011. The bank came closer than any other bank to receiving four out of five available stars for performance in foreclosure prevention. A five star rating ""represents superior performance wherein the servicer is meeting or exceeding Fannie Mae's targets,"" according to Fannie Mae.

According to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS), the 30-year fixed rate mortgage (FRM) averaged 3.66 percent (0.7 point) for the week ending August 23, up from 3.62 percent the previous week. The 15-year FRM also slid up, averaging 2.89 percent (0.6 point). A week ago, the 15-year fixed averaged 2.88 percent.