Tag Archives: Freddie Mac

The agency charged with overseeing the nation's two largest mortgage companies is downsizing its own real estate. The Federal Housing Finance Agency (FHFA) said Monday that it is consolidating its three Washington, D.C. office locations into one. FHFA currently has employees in offices on G Street; Pennsylvania Ave.; and Eye St., Northwest, but plans to move all staff to a new central location at the Constitution Center at 400 Seventh St., Southwest, beginning November 2011.

President Obama's nominee to take the role of Federal Housing Finance Agency (FHFA) director and lead the government's efforts to reform the housing finance system has pulled his name out of the running. Joseph A. Smith, Jr. has served as North Carolina's banking commissioner for the past eight years, and he was the White House's top pick to head the agency charged with overseeing Fannie Mae and Freddie Mac.

For the second week in a row, mortgage interest rates have edged up, according to Freddie Mac. The average rate on a 30-year fixed mortgage climbed to 4.80 percent, while the 15-year rate increased to 4.09 percent. The GSE's chief economist attributed the rise to positive news on the economic front that suggests the recovery is gaining some traction and consumers are more confident in the job market. Bankrate reported that the larger jumbo 30-year fixed rate increased to 5.53 percent, after falling for three weeks in a row.

The passing of the Dodd-Frank Reform Act last summer was hailed as the end of ""too-big-to-fail"" and the end of corporate bailouts. But in a report to be presented to Congress Wednesday, Neil Barofsky, head of the group charged with overseeing the government's handling of the Troubled Asset Relief Program (TARP) says the ""too-big-to-fail"" problem has not been solved; in fact, it's gotten worse, thanks to implicit guarantees that came with the massive bailouts of companies such as Citigroup, AIG, and Bank of America.

The latest Case-Shiller figures released by S&P Tuesday signal home prices across the United States continue to weaken. Based on data through November 2010, the 10-city composite of the closely watched gauge was down 0.4 percent and the 20-city composite fell 1.6 percent from their November 2009 levels. Home prices fell in 19 of 20 major metros on a month-to-month basis. S&P's analysts say a double-dip in home prices could be confirmed before spring.

In November, Texas representative Randy Neugebauer sent a letter to the Federal Housing Finance Agency (FHFA) requesting a report from Acting Director Edward DeMarco detailing how much taxpayer dollars are being spent on legal costs for former Fannie and Freddie execs. A report released last week details just that, and the results are eye opening. Currently the bill sits at a hefty $160 million and counting.

For decades the GSEs have made it possible for many people to achieve their homeownership goals by reducing the cost of credit and making it more readily available. But in light of the recent financial meltdown, banks and other corporations are calling for reform that they say the Dodd-Frank Act didn't cover. The government is set to release a report on the future of Fannie and Freddie in the coming weeks, but market participants have low expectations for a definitive solution in the report.

The nation's largest bank reported this morning that it lost $2.2 billion in 2010. During the fourth-quarter period, Bank of America posted a net loss of $1.2 billion, which included a goodwill impairment charge of $2.0 billion in its home loans and insurance division. Had it not been for this charge, the company says it would have earned $756 million in the fourth quarter. The company called 2010 a year of ""necessary repair and rebuilding."" Bank of America is the only one of the 'Big Four' to report a loss.

Industry data released Thursday show that interest rates for 30-year fixed mortgages moved up this week, while adjustable-rate mortgages dipped lower. Freddie Mac puts the 30-year fixed-rate mortgage at an average of 4.74 percent. The 15-year rate, on the other hand, headed down with adjustable rates. Analysts say the gap between fixed and adjustable rates has grown significantly in the last six months, making some of the hybrid adjustable rate products a compelling option for certain borrowers.

Freddie Mac released a new seller/servicer guide this week with revised rules regarding mortgage refinance and underwriting requirements. For loans with settlement dates on or after May 1, 2011, Freddie Mac will require verification of funds for all refinance mortgages. The GSE is also eliminating streamlined refinances for mortgages it owns and has updated refinance requirements for mortgages secured by properties subject to Property Assessed Clean Energy (PACE) obligations.