Tag Archives: FHFA

Oklahoma Governor Mary Fallin recently signed legislation to restrict Wall Street home resale fees, also known as private transfer fees. The fees require that a private third party receive a percentage of the final sale price of a home every time the property is sold, typically for 99 years. Oklahoma is the 30th state to restrict their use. On the federal level, the Federal Housing Finance Agency has issued a proposed rule that would prevent Fannie Mae and Freddie Mac from investing in mortgages with these fees.

House lawmakers have introduced a bipartisan plan that would replace Fannie Mae and Freddie Mac with a group of private firms to fill the role of issuing government-guaranteed mortgage-backed securities. The bill's authors say it would not only protect taxpayers but would ensure financing for home loans and products like the 30-year fixed-rate mortgage remain available to middle-class families. Market observers say the proposal is the only one so far that could win sufficient support from both sides of the aisle.

Fannie Mae has released new details on its book of business, which shows the share of mortgages it owns or guarantees that's past due by three months or longer has been on a steady decline for a year now. The nation's largest mortgage company reported that its seriously delinquent rate on single-family mortgage loans slipped to 4.44 percent in February of this year. That's down just 1 basis point from 4.45 percent in January, but it marks the 12th straight month that the rate has decreased.

Fannie Mae and Freddie Mac are issuing new guidelines to servicers in order to align their procedures for handling past-due mortgages. The objective is to ensure consistent servicing requirements for loans handled on behalf of the GSEs across four key areas: borrower contact, delinquency management practices, loan modifications, and foreclosure timelines. The new approach provides monetary incentives for servicers that perform well and imposes fines on those that do not.

North Dakota is the 27th state to restrict home resale fees, also known as ""private transfer fees."" Governor Jack Dalrymple recently signed bill SB 2149 to ban them. Private transfer fees require that a private third party receive a percentage of the final sale price of a home every time the property is sold, typically for 99 years.

The percentage of home loans going unpaid is steadily declining for the nation's second largest mortgage company. Freddie Mac reported Tuesday that its single-family seriously delinquent rate decreased to 3.63 percent in March. That's down 15 basis points from 3.78 percent in February, and the fourth consecutive month that the rate has headed south. With only a few intermittent blips upward over the last year, Freddie has recorded a drop in its seriously delinquent rate in nine of the past 12 months.

Data released by the Federal Housing Finance Agency (FHFA) Thursday shows further declines in residential property values. Home prices in the United States declined 1.6 percent on a seasonally adjusted basis from January to February, according to FHFA's latest monthly house price index. FHFA's index is calculated using purchase prices of houses backing conventional mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac, and FHFA says it is now at the same level seen in February 2004.

Washington Governor Christine Gregoire recently signed legislation to restrict Wall Street home resale fees - also known as private transfer fees. The new law, sponsored by Sen. Nick Harper, places a ban on these fees. Rep. Roger Goodman sponsored the companion bill in the state's House of Representatives. Washington is the 25th state to restrict the use of these fees.

Virginia Governor Robert McDonnell recently signed legislation to restrict Wall Street home resale fees (also known as ""private transfer fees"") in the state. Virginia is the 24th state to ban the use of these fees. The fees require that a private third-party receive a percentage of the final sale price of a home every time the property is sold, typically for 99 years.

Fannie Mae, Freddie Mac, and their regulator anticipate a decision on revamping mortgage servicers' payment structure by mid-summer, according to the Mortgage Bankers Association (MBA). The trade group, however, is urging the GSEs and federal agency to tread carefully and slowly in undertaking such an endeavor. MBA says the options put forth raise more questions than answers, particularly related to the ""default servicing fee.""