Tag Archives: Freddie Mac

Fixed rate mortgages were little changed this week after falling and breaking record lows, according to Freddie Mac's Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 3.78 percent (0.8 point) for the week ending May 24, down slightly from last week when it averaged 3.79 percent. The 15-year rate was unchanged from last week's average at 3.04 percent (0.7 point). Bankrate.com reported little movement as well in its weekly survey.

MGIC Investment Corporation announced Thursday that its Mortgage Guaranty Insurance Corporation subsidiary filed a lawsuit against Freddie Mac and its conservator, FHFA. The lawsuit was filed in federal court in Milwaukee, Wisconsin, and the dispute is in regards to a disagreement over aggregate loss limit under certain pool insurance policies.

Just when it seemed like they could not fall any further, fixed-rate mortgages continued to drop, breaking record-low numbers once again, according to Freddie Mac's weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.79 percent (0.7 point) for the week ending May 17, slipping from last week's average of 3.83 percent. The 15-year fixed-rate mortgage also fell, ending the week at 3.04 percent (0.7 point). Bankrate.com, which releases a weekly survey using data provided by the top 10 banks and thrifts in the top 10 markets, reported a record-low average for the 30-year fixed, which dropped below 4 percent.

Freddie Mac said Thursday that its board of directors has selected Donald H. Layton to serve as the company's new CEO. Layton will join the GSE on May 21, and will also have a seat on the board of directors. In October 2011, the Federal Housing Finance Agency announced that Charles E. Haldeman, Jr. had informed Freddie Mac's board of his desire to step down within the year. Haldeman served as the GSE's CEO since August 2009. Layton has had a long career in the private banking and financial services sectors. He worked for nearly 30 years at JPMorgan Chase and its predecessors and more recently, served as chairman and CEO of E*Trade Financial.

According to Freddie Mac's first quarter refinance analysis, 79 percent of homeowners who refinanced their first-lien mortgage either maintained or reduced their mortgage debt. Of these borrowers, 58 percent retained about the same loan amount, which is the highest level reached in the 26-year history of the analysis, while 21 percent managed to reduce their principal balance.

Due to one important adjustment, Fannie Mae and Freddie Mac might start accepting funds to be applied toward principal reduction in California. The Keep Your Home California program once required participants in its principal reduction program to match funds it provided towards reducing principal. Recently, housing finance agency officials from the state announced a decision to no longer require lenders to match the funds the program provides, the L.A. Times first reported.

Freddie Mac reported net income of $577 million for the first quarter of 2012. That combined with $1.21 billion in unrealized gains on securities investments resulted in comprehensive income of $1.79 billion. The GSE's finances didn't sit in the black for very long, however. After a $1.8 billion dividend payment to its primary shareholder, the U.S. Treasury, Freddie's net worth was a deficit of $18 million. Looking at the GSE's loss mitigation numbers, short sales almost equaled the number of loan modifications during the first quarter.

After just over two years as executive vice president over the single-family mortgage business at Freddie Mac, Anthony Renzi is stepping down. According to documents filed with the Securities and Exchange Commission Monday, Renzi submitted his resignation on April 24 and will officially depart from the organization on May 11. Renzi was responsible for managing and minimizing losses on Freddie Mac's nearly two trillion-dollar single-family guaranteed portfolio, which included overseeing the company's loss mitigation activities.

Fixed mortgage rates slipped further down, maintaining their near-record low averages despite evidence of an improving economy, according to Freddie Mac's Primary Mortgage Market Survey. The Fed stated that it expects economic growth to remain moderate and then pick up gradually. The 30-year fixed-rate mortgage, which has been below 4 percent every week in 2012 except one so far, averaged 3.88 percent (0.7 point), a drop from last week's average of 3.90 percent.

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days. The GSEs issued new guidelines Tuesday that aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales. Fannie and Freddie plan to use the new short sale timelines to evaluate servicer compliance with their Servicing Alignment Initiative.