Tag Archives: FHFA

Fannie Mae and Freddie Mac are offering a relief program to victims of Superstorm Sandy who were current on their mortgage before the storm, Governor Andrew M. Cuomo of New York announced in a release Thursday. According to the release, the program is in response to letters the New York State Department of Financial Services (DFS) sent in April, which urged for a change in what Cuomo's administration called ""restrictive"" guidelines that could lead to a spike in mortgage payments for Sandy victims.

In a notice Thursday, Freddie Mac encouraged servicers to prepare for new requirements for default-related legal services that will take effect in less than a month. Under the new requirement, Fannie Mae and Freddie Mac servicers must select qualified law firms by June 1 to handle all new referrals of default-related legal services, such as foreclosures, loss mitigation, bankruptcy, and related litigation.

President Obama announced Wednesday his nomination of Rep. Mel Watt (D-North Carolina) to serve as FHFA's director, a role played by Edward DeMarco since he was appointed acting director in August 2009. Watt has represented his district for more than 20 years. In his time as a congressman, Watt has made it part of his mission to put a spotlight on predatory lending practices and to ensure access to mortgages for low-income borrowers. ""He's helped protect consumers from the kind of reckless risk-taking that led to the financial crisis in the first place,"" Obama said in his personnel announcement.

Fannie Mae made available loan-level credit performance data for single-family mortgages delivered to the GSE from January 1, 2000 to March 31, 2012. The release of the new data marks a step toward greater transparency. Through the data, investors can model the credit performance of Fannie Mae loans and analyze potential risk sharing transactions. In a statement, FHFA applauded Fannie Mae's release, explaining it ""represents an important step toward returning private capital to the mortgage market.""

Starting July 1, large numbers of non-paying borrowers will have the opportunity to modify existing mortgages through a more streamlined process. This sounds like a good way to reduce foreclosures and prop up home prices, but as we will shortly see the proposed program is oddly risky and likely to encourage additional defaults. The program is open to borrowers who have already modified their loans once, perhaps a few years ago when rates were higher. This, at least, is a good idea. So what's the big difference between the new program and the modifications offered previously?

The Federal Housing Finance Agency (FHFA) released Tuesday its House Price Index (HPI) for February, revealing home prices rose 0.7 percent month-over-month on a seasonally adjusted basis. Year-over-year, U.S. house prices were up 7.1 percent in February, according to FHFA. As of February, the U.S. index rested at 196.3, 13.6 percent below its peak in April 2007 and was roughly the same as its October 2004 reading. FHFA's index has not declined on a monthly basis since January 2012.

As the GSEs approach their fifth year in government conservatorship, Congress held a hearing Thursday to evaluate the Federal Housing Finance Agency's (FHFA's) role as regulator and conservator. Acting Director Edward DeMarco offered testimony detailing the agency's achievements, and Steve A. Linick, inspector general at the FHFA Office of the Inspector General, highlighted some areas in need of improvement at FHFA. Linick praised the FHFA as it has ""accepted and begun to implement the vast majority of our audit and evaluation recommendations."" He also addressed areas that could use improvement.

Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA), announced the promotion of Fred C. Graham to deputy director of the Division of Federal Home Loan Bank Regulation. Graham has been with FHFA since its establishment in 2008 and has held several senior positions within the agency.

The Federal Housing Finance Agency (FHFA) granted the Home Affordable Refinance Program (HARP) a two-year extension, the agency announced Thursday. Under the direction of FHFA, Fannie Mae and Freddie Mac's regulator, the program will live on until December 31, 2015. ""More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,"" said FHFA Acting Director Edward J. DeMarco. ""We are extending the program so more underwater borrowers can benefit from lower interest rate.""

The National Association of Home Builders expressed its support for a housing finance system that phases out Fannie Mae and Freddie Mac but maintains a degree of federal support. ""[A] federal backstop should be a fundamental element of bipartisan legislation moving forward,""said Rick Judson, NAHB chairman. The Bipartisan Policy Center Housing Commission and the Mortgage Bankers Association have also expressed support for a housing finance system that calls for an expanded role of private capital while maintaining a level of federal support as measure of last resort.