Tag Archives: Fannie Mae

With numbers from a CoreLogic report revealing 22.8 percent of borrowers are underwater, principal reduction has been eyed as a key solution to keep borrowers in their homes. The Center for American Progress has released a report detailing solutions to the ""moral hazard"" issue. One is to make principal reduction a one-time program open to borrowers already delinquent; another is to open the program only to current borrowers who are at-risk of default; and the third is ""shared appreciation"" modifications.

Since the September 2008 conservatorship, Fannie Mae and Freddie Mac have completed nearly 1.1 million permanent loan modifications, according to the FHFA's latest foreclosure prevention report. Data from the Office of the Comptroller of the Currency show that in the two years ending in the third quarter of 2011, modifications on Fannie Mae and Freddie Mac loans accounted for 40 percent of all loan modifications. Overall, the GSEs have completed more than 2.1 million foreclosure prevention actions since being taken over by the federal government.

As the government begins to tiptoe into the REO-to-rental arena after many months' deliberation and input from thousands of industry participants, Fannie Mae released a data note on the single-family rental market. Single-family renting increased by 2.7 percentage points from 2005 to 2010; multifamily renters decreased by about as much, 3 percent. This may suggest the single-family rental sector is cutting into the multifamily market share, but Fannie says the single-family renter doesn't fit the demographic that typically drives multifamily demand.

The Federal Housing Finance Agency (FHFA) released its final rule regarding private transfer fees Thursday. After reviewing the 4,200 comments it received in response to its proposed guidance, the FHFA is issuing a rule that restricts Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from taking on mortgages and related securities encumbered by certain types of private transfer fee covenants, also known as Wall Street home resale fees.

Fannie Mae announced results for its annual Servicer Total Achievement and Rewards (STAR) program performance scorecard Thursday. Fannie Mae reviewed 33 servicers for the STAR program, but plans to add other servicers in 2012. As of June 30, 2011, Fannie Mae had 1,498 mortgage servicers and a loan portfolio of $2.7 trillion, with the 10 largest servicers managing 76 percent of Fannie Mae's loan portfolio, according to the FHFA Office of Inspector General.

Fannie Mae is looking to change the way insurance is applied to borrowers who end up with force-placed insurance due to gaps in coverage. The GSE announced Tuesday that it has issued a request for proposals (RFP) inviting insurance companies to compete for Fannie Mae LPI business, which should lead to significantly reduced insurance costs. By reducing insurance costs, homeowners, taxpayers, and Fannie Mae are all said to save money. Fannie Mae also said it will provide servicers with new policy guidelines on when and how to secure LPI, as well as guidance regarding allowed reimbursable costs.

Fannie Mae has put a block of 2,490 REOs up for sale. It's the first pilot transaction of the federal government's Real-Estate Owned (REO) Initiative announced in August 2011, which aims to sell homes repossessed by government agencies to private investors for the purpose of turning the properties into rental units. The homes up for grabs are concentrated in the hard-hit metropolitan areas of Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix, and parts of Florida, and 85 percent of them are already occupied by tenants.

Bank of America will no longer sell new loans to Fannie Mae due to disputes over repurchase claims. The bank will still deliver modifications and refinancings for Fannie Mae loans. The disclosure was made Thursday in the bank's Securities and Exchange Commission Filing. In January 2011, the bank paid about $2.5 billion to Fannie Mae and Freddie Mac for loans that were allegedly originated with improper underwriting standards. Due to a settlement in June 2011, the bank also agreed to pay $8.5 billion to Bank of New York.

Respondents from a Fannie Mae National Housing Survey for January 2012 expressed expectations for home prices to increase by 1 percent over the next 12 months, and most Americans continue to expect no change in mortgage rates. This marks the fourth month in a row consumer expectation was positive. The Fannie Mae survey polled 1,000 Americans through a telephone interview to assess attitudes towards different areas of the mortgage industry, including owning and renting, rates, homeownership distress, and the economy.

Fannie Mae announced Tuesday that it has expanded its online system to accept purchase offers for all its REOs listed for sale. Real estate agents will now submit offers online on behalf of clients, receive receipt confirmation, and track the status of submitted offers through the HomePath.com website. In November 2010, Fannie Mae launched the HomePath Online Offers pilot in Orlando, Florida; San Diego, California; and Detroit, Michigan. Now, the Online Offers feature is available for all Fannie Mae-owned properties across the nation.