Tag Archives: Freddie Mac

Radian Guaranty Inc. reported a decline in primary mortgage insurance delinquencies in August. The monthly release, based on statistics reported to Radian from loan servicers, showed delinquent inventory fell by 11,715 (15.2 percent) over August to end the month at 65,427. The majority of the monthly decline came from a master transaction agreement with Freddie Mac which removed its exposure to 9,756 loans that were delinquent as of December 31, 2011 (in addition to 4,586 re-performing loans).

As mortgage rates climb, refinances are on the decline. However, refinances through the government's Home Affordable Refinance Program (HARP) remain elevated compared to last year's volumes, according to the Federal Housing Finance Agency's (FHFA) Refinance Report for the second quarter of 2013. HARP refinances totaled about 280,000 for the quarter, down slightly from about 290,000 in the first quarter of this year, FHFA reported.

Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., has entered into a master transaction agreement with Freddie Mac which the company says eliminates its claim exposure on 9,756 delinquent mortgage loans and 4,586 re-performing loans. The agreement involves a group of 25,760 first-lien mortgages held by Freddie Mac that were insured by Radian and were delinquent as of December 31, 2011. The agreement spells out future claim payments, loss mitigation activity, and insurance coverage of these loans.

Mortgage interest rates headed higher this week, nearly reaching year-to-date highs as markets waited for the Friday morning release of the August Employment Situation Report. Freddie Mac's weekly survey put the 30-year fixed-rate mortgage at an average 4.57 percent for the week ending September 5, up from 4.51 percent last week. Shorter term fixed rates and adjustable-rate mortgages all climbed higher as well. Freddie Mac's chief economist attributed the rise in rates to ""signs of a stronger economic recovery.""

Freddie Mac's weekly updated Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging 4.51 percent (0.7 point) for the week ending August 29, down from 4.58 percent the prior week. A year ago at this time, the 30-year FRM averaged 3.59 percent. The 15-year FRM this week averaged 3.54 percent (0.7 point), down from 3.60 percent previously.

The Federal Housing Finance Agency's (FHFA) House Price Index (HPI) rose 2.1 percent from the first to second quarter, marking the eighth consecutive quarterly increase. In June alone, the index was up 0.7 percent month-over-month. Compared with the same quarter last year, home prices increased 7.2 percent, while prices of other goods and services inched up only 1.0 percent. According to FHFA, the inflation-adjusted price of homes rose approximately 6.2 percent over the latest year.

Fannie Mae and Freddie Mac have both updated their seller guides to incorporate the Consumer Financial Protection Bureau's Ability to Repay rule under the Truth in Lending Act. The Federal Housing Finance Agency (FHFA) worked with the GSEs to update their respective seller guides in alignment with one another. The basic goal of the ""Ability to Repay"" rule is to ensure lenders act in good faith that a borrower can repay his or her loan before offering the loan.

Freddie Mac is requiring servicers to offer a new modification to help borrowers in eligible disaster areas starting November 1, 2013. Dubbed the Capitalization and Extension Modification for Disaster Relief, the new option provides relief to borrowers by adding payments to the end of the loans to bring the account current. Fannie Mae also announced similar disaster relief policies in a recent servicing guide last week.

Over the past four years since the recession ended, GDP has grown only 9 percent, Freddie Mac revealed in a recent analysis. At the current rate, the ""U.S. has experienced the weakest economic recovery coming out of a recession in the Post-War era,"" said Frank Nothaft, Freddie Mac VP and chief economist. Despite the ""frustratingly slow"" growth rate, the GSE expects the housing sector to aid the sluggish economic recovery in three ways.

Freddie Mac's Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 4.40 percent (0.7 point) for the week ending August 15, flat from last week. Last year at this time, the 30-year FRM averaged 3.62 percent. The 15-year FRM this week averaged 3.44 percent (0.6 point), up very slightly from 3.43 percent in the last survey. Bankrate.com also reported slight movements in average fixed rates.