Tag Archives: Freddie Mac

The Obama administration says its plan for reforming the housing finance system will dramatically reduce the government's role in the mortgage market and bring an end to Fannie Mae and Freddie Mac within seven years. Key actions for phasing out the GSEs include pricing their guarantees based on the same capital standards as private lenders and increasing down payment requirements to 10 percent. The proposal also outlines near-term reforms to correct problems in foreclosure processing such as setting national standards for mortgage servicing.

Mortgage interest rates rocketed higher this week. Reports from Freddie Mac and Bankrate recorded significant jumps across all home loan products. Both companies' surveys showed that the average rate on a 30-year fixed mortgage has hit its highest level since April 2010. Some industry experts argue that rising rates could be a positive for the housing market. While the ascension will likely slow refinancing activity, it could be the nudge prospective homebuyers need to get off the fence and lock in lower borrowing costs.

The industry is abuzz with news that the federal government could unveil its proposal for overhauling Fannie Mae and Freddie Mac as early as Friday. The GSEs haven't had a profitable quarter in over three and a half years and were placed under government control in 2008 to avert their collapse. Since then, Treasury has pumped more than $150 billion into the two GSEs and cries for their reform have grown louder. The forthcoming proposal is expected to lay out three recommendations that call for phasing out the nation's two largest housing-finance companies.

Bruce M. Witherell resigned from his position and responsibilities as chief operating officer of Freddie Mac on Wednesday, according to a regulatory filing with the Securities and Exchange Commission (SEC). The GSE says Witherell is stepping down ""for personal reasons."" His resignation is effective immediately. According to the SEC filing, Witherell will not receive any termination benefits. A former Morgan Stanley and Lehman Brothers executive, Witherell joined Freddie Mac as COO just 17 months ago.

DecisionReady, a provider of default servicing compliance solutions based in California, announced this week that it has reviewed 1 million delinquent residential mortgage loans for loss mitigation and foreclosure process and policy compliance for leading servicers. DecisionReady technology offers compliance for early stage delinquency through loss mitigation, foreclosure, and the post-sale process to ensure regulatory rules and investor guidelines are met.

Mortgage bankers originated $110 billion of commercial and multifamily mortgages during 2010 - an increase of 36 percent from 2009, according to the Mortgage Bankers Association. A separate report from Jones Lang LaSalle corroborates the trade group's assessment of a resurgence in the financing market and indicates even stronger growth in 2011, even without the predicted surge is distressed sales. Wells Fargo is ranked as the largest servicer of commercial and multifamily mortgages.

The Federal Housing Finance Agency (FHFA) is restructuring its safety and soundness and mission offices this week, including establishing an integrated supervision structure and a revamped housing mission and policy division. The agency says changes in the supervision program structure will promote greater uniformity and consistency in the examinations of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

Freddie Mac announced this week that its multifamily whole loan and bond guarantee business had approximately $15 billion in volume in 2010, down from $17 billion in 2009. The volume includes Freddie Mac's targeted affordable housing products. Last year Freddie Mac's multifamily business settled more than $13 billion through the GSE's conventional programs.

The Federal Housing Finance Agency (FHFA) has sided with consumer advocacy groups that say private transfer fee covenants, also referred to as Wall Street home resale fees, place a hidden financial burden on homebuyers and home sellers. FHFA sent a proposed rule to the Federal Register this week, which would limit Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from dealing in mortgages on properties the federal agency describes as ""encumbered"" by certain types of private transfer fee covenants.

This week, mortgage rates showed mixed results, according to a study released by Freddie Mac, which is compiled using data gathered from around 125 lenders across the country. Mortgage rate data released this same week from Bankrate, shows more steady rates, using data from the top 10 banks and thrifts in the top 10 U.S. markets.