Tag Archives: FHFA

Freddie Mac has priced a $630 million offering of Structured Agency Credit Risk (STACR) debt notes, marking the second STACR offering in which private sources--not taxpayers--take on the credit risk. According to a statement from the GSE, about 50 broadly-diversified investors participated in the offering for the debt notes, which are scheduled to settle November 12.

Senate Republicans blocked a vote on the nomination of Rep. Melvin Watt to head up the Federal Housing Finance Agency. Watt's proponents say the former real estate lawyer would support greater consumer protections and assistance for homeowners. Critics say acting director Edward DeMarco has dutifully protected taxpayers, pursued policies that promote a healthy housing economy, and should get the nod for the director's spot.

Ally Financial is the fifth bank to reach a settlement with the federal government over soured mortgage bonds sold to Fannie Mae and Freddie Mac prior to the housing and foreclosure crisis. The bank announced Tuesday that it settled the 2011 lawsuit brought by the Federal Housing Finance Agency over toxic mortgages. Ally also reached a separate settlement with the FDIC to resolve pending litigation related to the company's legacy mortgage dealings.

JPMorgan Chase's $4 billion settlement with the Federal Housing Finance Agency (FHFA) reached late last week ""sets a relatively high bar"" for the 13 other banks still facing litigation from the federal agency, according to Fitch Ratings, which suggested Tuesday that some of the banks may need to increase their litigation reserves before settling. The $4 billion is about 12 percent of the original face value of the private-label mortgage-backed securities for which FHFA sought damages.

JPMorgan Chase reached agreements to resolve its mortgage-backed securities litigation with the Federal Housing Finance Agency (FHFA) and rep and warranty repurchase claims from Fannie Mae and Freddie Mac. Altogether, the bank has agreed to pay $5.1 billion to the GSEs.

A 10-person panel of jurors is holding Bank of America and a mid-level manager liable for high-risk mortgages originated by Countrywide through a program known as Hustle and then sold off to Fannie Mae and Freddie Mac. After hearing arguments for four weeks in a Manhattan federal court, the jury returned a decision finding BofA liable on one charge of fraud in the civil case and finding Rebecca Mairone, former COO of one of Countrywide's lending divisions, liable on the one civil fraud charge she faced.

Marking 19 consecutive months of appreciation, the Federal Housing Finance Agency's (FHFA) House Price Index rose 0.3 percent on a seasonally adjusted monthly basis in August. On a yearly basis, the index is up 8.5 percent. Of the nine census divisions, FHFA detected the greatest monthly price increase in the Mountain division, where prices increased 1.3 percent in August. The greatest monthly decrease took place in the South Atlantic division, where prices declined 0.5 percent.

Fannie Mae priced its first risk-sharing transaction under the Connecticut Avenue Securities series (C-deals). The $675 million note offering is scheduled to settle on October 24 and is similar in structure to the STACR risk-sharing transaction from Freddie Mac this summer. Likewise, Fannie Mae's C-deal is intended to attract private capital to the housing market and reduce taxpayer risk.

As the industry prepares to comply with the January implementation of new rules from the Consumer Financial Protection Bureau (CFPB), Fannie Mae and Freddie Mac updated their servicing guides to bring GSE standards in line with the new regulations. Among the guideline changes, servicers are prohibited from mentioning foreclosure earlier than 121 days into delinquency.

Federal Housing Finance Agency Acting Director Edward DeMarco is deliberating lowering the loan limits for Fannie Mae and Freddie Mac. Congress and the industry, however, are voicing a singular opposition, claiming such action would be detrimental to the housing recovery that is starting to take place across the country. Federal lawmakers and several industry groups sent letters to DeMarco over the past week, some even questioning the legality of such a move.