Tag Archives: Freddie Mac

Freddie Mac plans to re-securitize certain mortgage loans that were previously delinquent but have been reinstated to current, performing status. The new-issue bonds will not, however, include loans that have been modified. The GSE says this new avenue for securitization will provide more flexibility for the company to manage its mortgage-related investment portfolio and its distressed assets. Freddie Mac expects to make its first offering of reinstated loans later this month.

California Attorney General Kamala Harris reportedly sent subpoenas to Fannie Mae and Freddie Mac, requesting information about their servicing, foreclosure, and property leasing actions in the state. The attorney general's office also intends to investigate the GSEs' actions regarding purchases of ""toxic mortgages."" With one of the highest default rates in the nation, Harris has been actively seeking aid for California homeowners and has recently lobbied for increased principal reductions from Fannie and Freddie.

Fannie Mae and Freddie Mac have notified servicers that they can no longer refer foreclosure or bankruptcy cases to the law firm of Steven J. Baum, P.C. in upstate New York. The Baum law firm has found itself at the center of controversy. In early October, the firm agreed to pay $2 million to end an investigation by the U.S. Department of Justice into its foreclosure practices. Two weeks after the DOJ settlement was announced, the New York Times ran photos of the firm's 2010 Halloween party, which depicted a mockery of homeowners who had been foreclosed on.

Data released by Freddie Mac shows the average rate for a fixed-rate mortgage with a 30-year term has hovered at or below the 4.00 percent threshold for three consecutive weeks. The GSE's latest study, averaging rate data from 125 lenders for the week ending November 17, puts the 30-year fixed-rate mortgage at exactly 4.00 percent. The 15-year fixed-rate mortgage, a popular refinancing choice, averaged 3.31 percent.

Freddie Mac has announced the launch of a nationwide winter sales promotion to move its inventory of foreclosed homes and put them back into the hands of responsible homeowners purchasing a primary residence. HomeSteps, the GSE's REO sales division, will pay selling agents a $1,000 bonus for offers received on Freddie Mac-owned homes in select locations. The offer is valid only on homes sold to owner-occupant buyers and runs through March 15, 2012. Freddie Mac held 59,596 single-family REO homes as of the end of September.

Fannie Mae and Freddie Mac have released highly anticipated guidelines for the revised Home Affordable Refinance Program (HARP). Among the key program revisions, the GSEs have eliminated or raised the loan-to-value cap, and relaxed representation and warranty stipulations. Both government officials and market analysts have said rep and warranty waivers could spark heated competition among lenders to refinance borrowers through HARP. With the new guidelines, the GSEs laid out exactly what will be waived.

The House Financial Services Committee voted in favor of a bill Tuesday that would prohibit Fannie Mae and Freddie Mac from paying out future bonuses and suspend the 2011 compensation packages that have been approved by their regulator. The bill passed the committee by a vote of 52 to 4 and now moves to the full House for consideration. On the other side of Capitol Hill the very same day, the Senate Banking Committee held a hearing in which members grilled the GSEs' regulator about executive pay.

Freddie Mac says its REO homes sell for an average of 94 percent of market value. According to the GSE, because Freddie Mac-owned homes are well maintained and priced right for the local market, most sell close to full estimated market value. Freddie Mac sold more than 80,000 single-family REO homes in the first nine months of 2011, which the company says is a record. According to the GSE, it is selling more homes than it's taking in through foreclosure.

Sen. Bob Corker of Tennessee has introduced a bill aimed at winding down the GSEs and bringing uniform standards to the industry. Coker's proposal would gradually reduce the amount of new mortgage backed securities (MBS) issued by Fannie Mae and Freddie Mac over 10 years. At the end of the 10-year period, the MBS market would be completely private. The bill also mandates sales of the GSEs' technology and other systems to private investors, and calls for a replacement to the MERS registry system.

The average 30-year fixed-rate mortgage came in at 3.99 percent this week, according to data released Thursday by Freddie Mac. It's the second time this year the rate has dropped below the 4.00 percent mark, and is the second lowest reading in the history of the GSE's survey. It averaged 3.94 percent for the week ending October 6, 2011. Freddie Mac described rate movement overall as ""changing little"" amid a mix of economic data reports, with most loan products up or down just 1 to 2 basis points.