Tag Archives: Freddie Mac

The nation's two largest mortgage companies saw the number of actions carried out to prevent foreclosures on their loans more than double in 2010 when compared to 2009. Servicers of Fannie Mae and Freddie Mac loans completed 946,305 foreclosure prevention workouts in 2010, according to data from the GSEs' regulator, the Federal Housing Finance Agency (FHFA). In 2009, they completed 431,098. FHFA also stressed that the performance of recently modified loans has improved relative to loans modified in earlier periods.

Interest rates on home loans continued their downward trend this week, marking the third straight week that they've headed lower. According to Freddie Mac's national survey, the average rate on a 30-year fixed mortgage came in at 4.87 percent for the week ending March 3. That's down from 4.95 percent the week prior. Freddie's chief economist says the drop means homebuyers could now expect to pay $263 less per year on a $200,000 loan.

The U.S. Department of Veterans Affairs (VA) has issued a notice announcing regulatory changes for modifying VA-guaranteed home loans. According to the department, the new rule makes VA loan modifications more flexible and encourages loan holders to modify more loans. It changes the requirements related to maximum interest rates allowed on modified VA loans and the items that can be capitalized into the modified loan amount.

Treasury Secretary Timothy Geithner told lawmakers Tuesday that the government played a role in bringing down the housing market. He also blamed the government for creating moral hazard and leaving taxpayers responsible for cleaning up the mess, and said the government made mistakes that were avoidable. As part of his pitch to lawmakers for housing finance reform, Geithner stressed that fundamental change is needed -- change that is based on a shift of what many believe is the ""American Dream.""

New Vista Asset Management announced Tuesday that it has purchased the REO asset management business unit of REDC Default Solutions, LLC. Terms of the transaction were not disclosed. The asset management unit, previously operated within REDC, which is a wholly-owned subsidiary of Irvine, California-based Auction.com, LLC(formerly Real Estate Disposition, LLC), offers outsourced residential asset management services for banks and other financial institutions.

The Federal Housing Finance Agency (FHFA) reports that home prices nationally dropped 0.8 percent in the fourth quarter of 2010 when compared to the previous three-month period. On a year-over-year basis, the agency's index is down 3.9 percent. It's the largest annual decline recorded since the third quarter of 2009. Home prices have come in below their year-ago levels for 13 consecutive quarters now. The ongoing depreciation is being attributed, in part, to an elevated number of distressed properties weighing heavy on surrounding home prices.

Fannie Mae has released its fourth-quarter and full-year 2010 earnings results. The GSE reported net income of $73 million for the last three months of 2010. It's the first time the company's been in the black in over three years. Still, after a hefty $2.2 billion fourth-quarter dividend payment to the U.S. Treasury, Fannie Mae had a net worth deficit as of the end of last year and has requested $2.6 billion more in taxpayer dollars. For the full year of 2010, Fannie Mae recorded a net loss of $14 billion, compared with a loss of $72 billion for 2009.

Freddie Mac reported Thursday that it lost $113 million in the fourth quarter of 2010. The loss, compounded by the company's $1.6 billion quarterly dividend payment to Treasury for bailout money, left the GSE with a net worth deficit again. Freddie's regulator is requesting another draw from Treasury, this time to the tune of $500 million. The company's fourth-quarter shortfall was actually the smallest of 2010 and brings the GSE's losses for the full year to $14 billion.

For the second week in a row, mortgage rates continued to drop. Freddie Mac reported the rates of 30-year fixed-rate mortgages fell to 4.95 percent (0.6 point), and Bankrate reporting a drop as well, from 5.16 percent last week to 5.09 percent (.45 point) this week. The 15-year fixed rate mortgage averaged 4.22 percent (0.7 point) this week, down from last week's 4.27 percent.

Stewart Lender Services, a nationwide provider of centralized origination, loss mitigation, and REO asset solutions for mortgage lenders and servicers, has announced three key partnerships that will allow the company to expand its service offerings. Stewart is collaborating with Inglet Blair, LLC, Spectrum Field Services, and Field Asset Services.