Tag Archives: Freddie Mac

The Federal Housing Finance Agency (FHFA) issued its third report to Congress Monday, detailing the regulator's 2010 annual examinations of Fannie Mae and Freddie Mac. The GSEs' losses last year totaled $28 billion, versus $94 billion in 2009. The amount of taxpayer support needed by the two mortgage giants also narrowed, but FHFA says both Fannie and Freddie remain ""critical supervisory concerns,"" primarily because of continuing credit losses from loans originated during 2005 through 2007.

Servicers using the XetusOne Loan Management System already exceed the minimum requirements for the Treasury Department's new guideline mandating a single relationship manager for Home Affordable Modification Program (HAMP) borrowers. Available via California-based Xetus, the system provides servicers with compliance through its Web-based Software-as-a-Service (SaaS) platform.

Weaker than expected job growth in May pushed both fixed- and adjustable-rate mortgages to new lows for the year, Freddie Mac reported Thursday. The GSE's study, which is based on data collected from about 125 lenders across the country, put the 30-year rate at 4.49 percent and the 15-year at 3.68 percent.

Freddie Mac announced new leadership this week for its three lines of business, including its new single-family and operations and technology unit. The new division consolidates previously separated single-family business lines as well as the technology unit. Anthony Renzi has been named EVP to head up the new division. In addition, David Brickman was named SVP in charge of the multifamily division, Carol Wambeke was promoted to SVP and chief compliance officer, and Devajyoti Ghose will assume the roles of SVP of the investments and capital markets division and company treasurer.

Delinquency rates among different groups of commercial and multifamily mortgage investors were mixed in the first quarter, the Mortgage Bankers Association (MBA) reports. Delinquency loans held in commercial mortgage-backed securities (CMBS) reached their highest level since 1997, but MBA says the climb was slower than in recent quarters. On the other hand, delinquency rates for other investors, including Fannie and Freddie, remain below levels seen in the last major real estate downturn - some by large margins.

Foreclosure prevention actions on loans held by Fannie Mae and Freddie Mac declined during the first three months of this year, driven primarily by loan modifications. Permanent loan mods dropped for the third consecutive quarter to 86,201. Short sales were essentially flat at 25,705. According to the GSEs' regulator, even with the drop-off in loss mitigation actions the two companies' delinquency rates ""remain below industry levels."" In the first quarter, foreclosure starts declined while completed foreclosures increased.

Fannie Mae laid out new standards for mortgage servicers Monday related to the management of delinquent loans. The move is part of the Servicing Alignment Initiative announced by the company's regulator in late April to bring both Fannie Mae's and Freddie Mac's procedures for handling past-due mortgages in line with one another. The new rules are intended to address identified servicing issues such as the commencement of foreclosure actions while loss mitigation talks are ongoing and breakdowns in borrower communication.

Provided they live on in their current form, Fannie Mae and Freddie Mac will need another $42 billion from taxpayers over the next decade, according to the Congressional Budget Office (CBO). The agency says subsidies related to the GSEs' new business have fallen but they'll continue to need funding as long as their mortgage guarantees are priced below private institutions. CBO says the government faces two choices: either retain the GSEs' portfolios until the mortgages are paid off, or pay a private entity to assume the guarantee obligations.

The cost of borrowing for a fixed-rate home loan has slipped to its lowest level of the year yet again. Fixed mortgage rates dropped this week amid weak economic and housing reports, marking the seventh consecutive week they've headed lower. Market data released Thursday by Freddie Mac puts the 30-year fixed-rate at 4.55 percent and the 15-year at 3.74 percent.

Both new foreclosure actions and completed foreclosure sales took a dive in April after rising sharply the month before, according to industry data released Wednesday. Foreclosure starts nationwide totaled approximately 163,000 in April, while foreclosure sales dropped to 73,000, reports the industry alliance HOPE NOW. At the same time, though, proprietary loan modifications also declined. HOPE NOW says the performance of these loan mods has remained ""steady,"" with a re-default rate of 20 percent.