Tag Archives: Freddie Mac

Business Solutions, an affiliate of the American Bankers Association, and Freddie Mac announced in a release Wednesday the extension of their 10-year old alliance helping community banks compete in the purchase money mortgage market and support the nation's housing recovery.

The 30-year fixed averaged 3.56 percent (0.7 point) for the week ending July 12, down from 3.62 percent the previous week. At the same time in 2011, the 30-year fixed averaged 4.51 percent. This week marks the 16th straight week that the 30-year average has stayed below 4 percent. The 15-year fixed also fell, averaging 2.86 percent (0.7 point), a drop from 2.89 percent last week. A year ago, the 15-year fixed averaged 3.65 percent.

Freddie Mac selected William H. McDavid to serve as executive vice president, general counsel, and corporate secretary on Monday. McDavid will begin his new role on July 16 and replace Alicia Myara, who has worked as interim general counsel since November 2011.

In a report released Thursday, Wells Fargo's Economics Group cautioned that although the housing recovery is picking up steam, the good news needs to be placed in the larger context of a weakened market. The Housing Data Wrap-Up for June 2012 shows that even with the overall economy slowing, the recovery in the housing market seems to be picking up momentum. A mild winter boosted construction in the Northeast and Midwest during what is traditionally a slow season, giving builders more inventory to sell in the spring.

The search for a new low is still on as fixed-rates continue to break record-lows week after week. According to Freddie Mac's survey, fixed rates fell again following reports showing a slowdown in consumer spending and the manufacturing industry. The 30-year fixed-rate mortgage fell to 3.62 percent (0.8 point) for the week ending July 5. Last week, it averaged 3.66 percent. The 15-year fixed-rate dropped down to 2.89 percent (0.7 point) from last week's 2.94 percent.

The American Securitization Forum (ASF) released on Monday a white paper regarding FHFA's proposed single securitization platform, revealing that while originators and investors disagree on how to implement it, they concur that a single agency would be beneficial. The consensus among ASF members was that in order for the GSEs' securities to be exchangeable, standardization would have to occur in four key areas: Loan delivery and pooling requirements; remittance requirements; underwriting guidelines and refinance programs; and servicing standards and loan repurchase policies.

With high foreclosure rates still presenting a major hurdle to housing and economic recovery, GAO conducted a study to evaluate and find opportunities to enhance foreclosure mitigation efforts. The report asserts that government agencies participating in foreclosure mitigation programs need improve their existing strategies to help borrowers. The report specifically addressed loans modified by the Treasury (through HAMP), the United States Department of Agriculture (USDA), FHA, and the GSEs.

Mortgage rates remained somewhat flat for the week ending June 28, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). The 30-year fixed averaged 3.66 percent (0.7 point), staying level with the all-time low that was achieved the previous week. At this time in 2011, the 30-year fixed averaged 4.51 percent. The 15-year fixed averaged 2.94 percent (0.7 point), down slightly from 2.95 percent the previous week. This week's average matches the all-time low set in the first week of June 2012. At the same time last year, the 15-year fixed rate mortgage averaged 3.69 percent.

When hearing about the different narratives on the housing crisis, oftentimes the private sector is largely blamed. During an event hosted by The American Enterprise Institute (AEI) Wednesday, a recently published book was discussed which highlights a different perspective on the story of the housing market crash. Oonagh McDonald, a UK-based academic, wrote the book titled ""Fannie Mae and Freddie Mac: Turning the American Dream Into A Nightmare"" and asserts that the failures in the housing industry started with 'affordable housing ideology,' and was worsened by policy makers and the GSEs.

The OCC Mortgage Metrics Report for the First Quarter of 2012 showed that percentages of mortgages between 30-59 days delinquent and mortgages between 60-89 days delinquent both fell to their lowest levels since the OCC began publishing mortgage performance reports in Q1 2008. The percentage of mortgages that were current and performing increased to 88.9 percent, the highest level seen in three years. Also, of the more than 2.5 million loans modified by servicers from 2008-2011, 50.7 percent were either current or had been paid off by the end of 2012's first quarter.