Tag Archives: Freddie Mac

Delinquencies among commercial and multifamily mortgages are down, according to the latest report from the Mortgage Bankers Association (MBA). Measured separately, the delinquency rates for commercial and multifamily mortgages held by Fannie Mae, Freddie Mac, and life companies are all ""extremely low,"" according to Jamie Woodwell, VP for commercial real estate research at MBA.

Freddie Mac is ramping up repurchase demands and increasing the pool of defaulted loans subject to put-backs to include mortgages originated prior to the crisis in 2004 and 2005, according to U.S. Bancorp CEO Richard Davis. Speaking to investors at the Goldman Sachs Financial Services Conference this week, Davis described the news as ""unexpected,"" but Freddie Mac maintains it has always had the authority to pull files for review when loans stop performing regardless of when the loans were originated. The GSE says its repurchase policies have not changed and it is committed to working with lenders to resolve any issues.

A controversial bill that would extend an increase on guarantee fees (g-fees) on mortgages backed by the GSEs or the Federal Housing Administration (FHA) has passed in the House of Representatives. The bill, H.R. 6429 proposes reforms for visas offered to immigrants who possess advanced training in science, technology, engineering, or mathematics.

Despite a number of potentially damaging headwinds, the ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say in a recently released report. The housing industry's rapid rebound took many experts by surprise--even the researchers who authored the report admit they ""have been slightly taken aback"" by the recovery's speed. However, they point to several major indicators that show the current upturn is more than a temporary blip or a false recovery.

Freddie Mac's single-family seriously delinquent rate decreased from 3.37 percent in September to 3.31 percent in October--the lowest it's been since August 2009. The GSE's multifamily delinquency rate also fell, from 0.27 percent in September to 0.24 percent for the month of October. At the same time, Freddie Mac's total mortgage portfolio continued to shrink, however increased purchase and issuance volume pushed the company closer to positive growth for the first time in more than a year and a half.

Fannie Mae and Freddie Mac refinanced more than 90,000 mortgage loans through the Home Affordable Refinance Program (HARP) in September, bringing the program's total reach to 1.7 million since its inception in 2009, according to the latest refinance report from the Federal Housing Finance Agency. The rate of HARP refinances has increased since the program was revised in the fall of 2011 to expand borrower eligibility. Year-to-date, 709,000 loans have been refinanced through HARP, already far exceeding last year's total of about 400,000.

David Stevens, president and CEO of the Mortgage Bankers Associations, is voicing concerns about legislation (H.R. 6429) that would raise guarantee fees charged on single-family mortgages by Fannie Mae and Freddie Mac in order to pay for immigration reforms. Stevens issued a public statement stressing that the GSEs' guarantee fees are supposed to be used to offset risks associated with their mortgage purchases. He says dipping into the housing piggybank to pay for unrelated policy items on the backs of America's homebuyers sends the wrong message.

Fixed mortgage rates showed little signs of movement in the last full week of November, hovering near record lows as market worries heightened over the impending fiscal cliff. Freddie Mac puts the average 30-year fixed mortgage rate at 3.32 percent and the 15-year rate at 2.64 percent. Analysts say uncertainty surrounding the fiscal cliff has businesses, consumers, and financial markets all feeling uncertain themselves, which will keep mortgage rates at these levels as long as talks drag on in Washington.

The Federal Housing Finance Agency (FHFA) announced Thursday that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2013 will remain at existing levels. In most of the country, the loan limit will be $417,000 for one-unit properties, but that ceiling goes as high as $625,500 in certain high-cost markets.

The average 30-year fixed-rate mortgage rate fell to 3.31 percent (0.7 point) over the week ending November 21. The previous week, the rate was 3.34 percent, and last year, the rate stood at an even higher 3.98 percent, according to Freddie Mac. The 15-year fixed-rate mortgage also experienced a decline this week, falling from 2.65 percent to 2.63 percent (0.7 point), according to Freddie Mac's data. This week last year, the rate was 3.3 percent.