Tag Archives: FHFA

Fannie Mae and Freddie Mac continue to administer foreclosure prevention efforts while experiencing declines in delinquencies, foreclosures, and REO inventories, according to a report from the Federal Housing Finance Agency (FHFA). The GSEs enacted 541,219 foreclosure prevention actions in 2012, contributing to a total of 2.7 million foreclosure prevention efforts since the enterprises came under government conservatorship in 2008, according to the report. Over the year, delinquencies also fell by a substantial 14 percent with the FHFA reporting declines in every state except New Jersey and New York.

The Federal Housing Finance Agency (FHFA) introduced a new tool to help seriously delinquent borrowers avoid foreclosure. Starting July 1, Fannie Mae and Freddie Mac servicers will lift loan modification barriers by offering eligible borrowers reduced payments without asking for financial or hardship documentation. Through the FHFA's Streamlined Modification Initiative, eligible borrowers who are 90 days to 24 months past due will receive a solicitation offer with a trial period plan that lasts for three months. The offer will include a dollar amount for a new mortgage.

A new report from the watchdog for the Federal Housing Finance Agency (FHFA) charges that the department isn't doing enough to make sure companies doing business with the GSEs are adhering to consumer protection laws. The Office of the Inspector General for FHFA (FHFA-OIG) released an audit report Tuesday examining the agency's oversight of Fannie Mae and Freddie Mac's monitoring of businesses that sell and service loans.

Representation and warranty costs remained elevated in the fourth quarter among top originators, though new and outstanding repurchase claims were mixed for large mortgage companies, according to a recent analysis from KBW. The GSEs continued to drive much of the new and outstanding repurchase claims, with Fannie Mae repurchases totaling $1.9 billion in Q4, down from $2.02 billion in Q3, while Freddie Mac repurchases totaled $638 million, down from $819 million, the report revealed.

Home prices rose another 0.6 percent in January, according to the Federal Housing Finance Agency's (FHFA's) House Price Index, which measures the prices of homes owned or guaranteed by Fannie Mae and Freddie Mac. January's gain continues a persistent monthly trend of rising prices started in January 2012. The past 12 months of rising prices have resulted in a total gain of 6.5 percent. While prices continue their upward trend nationally, one-third of the nine U.S. Census Divisions recorded price declines in January--the East South Central Division, the New England Division, and the Middle Atlantic Division.

A new report from a government watchdog accused Freddie Mac, its servicers, and the Federal Housing Finance Agency (FHFA) of not meeting requirements when handling and resolving escalated consumer complaints. According to a report from the FHFA Office of Inspector General (OIG), Freddie Mac and eight of its largest servicers, which service 70 percent of the GSE’s mortgages, received over 34,000 complaints that became escalated cases during a 14-month time period ending November 30, 2012. After tracking the escalated cases, FHFA OIG found seven out of the eight Freddie Mac servicers did not resolve all escalated cases within the 30-day requirement.

Amendments to the Senior Preferred Stock Purchase Agreement (PSPA) between Treasury and the GSEs, agreed to in August 2012 may lead to faster and greater returns to taxpayers but could also potentially leave the enterprises with largely illiquid portfolios, according to a report from the Federal Housing Finance Agency's Office of Inspector General (FHFA OIG). The amendments addressed several terms of the PSPAs. One of the most notable changes was the change in dividend structure.

Speaking before the House Financial Services Committee at a hearing Tuesday morning, Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco presented his take on sustainable housing finance and what the future of housing finance might look like. DeMarco began his testimony at Tuesday's hearing, ""Sustainable Housing Finance: An Update from the Federal Housing Finance Agency on GSE Conservatorships"" by reiterating his goals for the GSEs this year. He then went on to describe three possible scenarios for the future of the housing finance system and the government's role in that system.

Three industry analysts gave testimony before a Senate committee on housing finance reform Tuesday. While all three experts expressed support for more private capital and less government involvement, the proposed degrees of government support varied. Mel Martinez, co-chair of the Bipartisan Policy Center's Housing Commission, recommended the elimination of the GSEs over a period of about 5-10 years and the creation of a limited, government guarantee called the ""Public Guarantor.""

A coalition of nine state attorneys general is petitioning the national government to replace Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco. The coalition charged DeMarco with positioning Fannie Mae and Freddie Mac as a ""direct impediment to our economic recovery"" and called for his replacement in a joint letter to the president, the Senate majority leader, and the Senate minority leader Friday. The attorneys' general complaint stems from DeMarco's refusal to allow the GSEs to engage in principal reductions for struggling and underwater homeowners.