Tag Archives: Freddie Mac

Market participants reacting to speculation that the Federal Reserve may taper its bond purchases later this year should refrain from acting too hastily, Freddie Mac says in its U.S. Economic and Housing Market Outlook for July. According to Freddie Mac's metrics, the 30-year fixed-rate mortgage has jumped a full percentage point since mid-May as ""taper talk"" rules the day. Rates are expected to gradually move higher, closing out 2013 in the range of 4.6 to 4.7 percent.

The Federal Housing Finance Agency Office of Inspector General (FHFA OIG) argued in a report released Tuesday that the FHFA should define specific performance goals for encouraging private participation in the mortgage credit risk market. For example, FHFA has not defined what it considers ""increased private sector investment"" nor determined how much it must raise guarantee fees to achieve this goal, according to the report. Similarly, FHFA has not set specific goals for its pricing initiatives with FHA.

With criticism for the Obama administration and the shortcomings of the Dodd Frank Act, the House of Representatives Financial Services Committee announced Thursday a new plan to fix housing finance and end the bailout for good. The Protecting American Taxpayers and Homeowners Act (PATH) aims to end the federal bailout of Fannie Mae and Freddie Mac within five years; increase competition in the housing finance market; and offer consumers more choices when shopping for mortgages.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent (0.8 point) for the week ending July 11, up from 4.29 percent last week and almost a full percentage point higher than the same week last year (3.56 percent). The 15-year FRM averaged 3.53 percent (0.8 point), up from 3.39 percent previously. Meanwhile, Bankrate.com's weekly national survey saw mortgage rates rising to their highest level in the last two years. The 30-year fixed averaged 4.66 percent this week.

The Federal Housing Finance Agency (FHFA) is facing a lawsuit from a housing group for allegedly failing to uphold the GSEs' obligations to make contributions to a housing trust fund. The National Low Income Housing Coalition announced the suit Tuesday. According to the group, Fannie Mae and Freddie Mac have not met their requirements to pay into the National Housing Trust Fund. Law requires the enterprises to transfer a portion of the value of their new business into the fund, though it was suspended in 2008.

The Mortgage Bankers Association has expressed support mixed with concern for the common securitization platform the Federal Housing Finance Agency is developing as part of its strategic plan for this year. While MBA condones the potential taxpayer savings and market efficiencies, the industry group continues to argue for more transparency and industry input in the platform development. In a paper released Wednesday, the MBA explained its vision for a successful common securitization platform.

Freddie Mac's Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 4.29 percent (0.7 point) for the week ending July 3, down from last week's two-year high of 4.46 percent. The 15-year FRM averaged 3.39 percent (0.7 percent), down from 3.50 percent the previous week. Bankrate's weekly national survey showed similar trends, with the 30-year fixed falling to 4.48 percent.

So far, efforts from the GSEs have led to nearly 2.8 million foreclosure prevention actions since the start of the September 2008 conservatorship, the FHFA reported Monday. The agency also found the serious delinquency rate for GSE borrowers decreased to 3 percent compared to 8 percent for Federal Housing Administration (FHA) loans. However, more than half of the GSEs' seriously delinquent borrowers were past due by at least a year in the first quarter.

Over the last year, Freddie Mac servicers have helped over one million borrowers remain in their homes through available programs. The total includes 687,000 borrowers who refinanced in 2012, of which 434,000 were borrowers who refinanced under the Home Affordable Refinance Program (HARP).

A bipartisan group of senators introduced on Tuesday legislation to replace Fannie Mae and Freddie Mac with a newly created agency. Citing the overwhelming presence of the GSEs in today's mortgage marketplace, Sens. Bob Corker and Mark Warner unveiled a new piece of legislation designed to wind down the enterprises and rebuild the private mortgage sector. The legislation would dissolve Fannie Mae and Freddie Mac within five years of passage and transfer appropriate utility duties and functions to a ""different, modernized and streamlined agency.""