Wingspan Portfolio Advisors said Tuesday the company has appointed E.J. Kite to the newly created position of SVP of information management. A mortgage technology veteran with 26 years' experience, Kite is responsible for leading Wingspan's expanding technology infrastructure, reporting and analytics capabilities, and integration of the specialty servicer's supporting software tools. Kite joins Wingspan from Fannie Mae and previously spent 20 years at Freddie Mac.
Read More »FHFA to Develop New Mortgage Servicing Compensation Plan
The Federal Housing Finance Agency (FHFA) on Tuesday said it has directed Fannie Mae and Freddie Mac to work in coordination with FHFA and HUD to consider alternatives for future mortgage servicing structures and fees for single-family mortgage loans. The current compensation plan is typically based on a minimum servicing fee that is a part of the mortgage rate, which FHFA says decreases flexibility for the servicing of non-performing loans.
Read More »Adjustable-Rate Mortgages Likely to Gain Favor with Borrowers: Report
Since the onset of the mortgage crisis, homebuyers have shied away from adjustable-rate mortgages (ARMs) but these loan products are slowly gaining back lost market share, according to Freddie Mac's chief economist, Frank Nothaft. In June 2004, ARMs hit a peak share of 40 percent of the home-purchase market but by early 2009, that share had fallen to just 3 percent. Today, ARMs are financing approximately 7 percent of new home-purchase loans, and Nothaft says he expects that number to rise to 9 percent in 2011.
Read More »Bank Foreclosures in Miami-Dade County Priced 47% Below Market
According to RealtyStore, a provider of local foreclosure listings, the median price of bank foreclosures in Miami-Dade County, Florida, are nearly half that of the current market rate. The firm's analysis showed 64 percent of all foreclosures for sale in the county are marketed by banks. The other foreclosures are listed for sale by government entities, including HUD and the GSEs. Bank-owned foreclosures are priced 47 percent less than the median market price. When it comes to government foreclosure pricing, the discounts are even deeper.
Read More »Fed’s Mortgage Investments Result in Record Returns
Income and expense data released by the Federal Reserve this week shows the central bank is earning a pretty penny from its investments in mortgage securities. The Fed began buying mortgage bonds from Fannie Mae, Freddie Mac, and Ginnie Mae in November of 2008 to help prop up the nation's deteriorating mortgage markets. In 2009, Fed officials reported that these efforts, combined with its purchases of Treasury securities, yielded a $46.1 billion profit. In 2010, earnings on those investments jumped to $76.2 billion.
Read More »Mortgage Interest Rates Ease Further This Week
Mortgage rates retreated this week, marking the second week in a row they've headed lower. Interest rates began a sharp ascension in early November, and experts have warned that the trend is likely to continue. The recent change of pace was attributed to last Friday's jobs report, which was weaker than market forecasts. Freddie Mac says 30-year rates this week dropped to 4.71 percent while 15-year rates fell to 4.08 percent. Bankrate says the larger jumbo 30-year fixed rate edged down to 5.57 percent.
Read More »Losses on Private-Label Mortgage Securities to Increase: Moody’s
As the backlog of foreclosures continues to drive down housing prices, losses on private-label residential mortgage backed securities (RMBS) will increase in 2011, according to Moody's. The forecast for more red ink seeping from home loans sold to investors comes despite the fact that the agency believes the rate at which loans become delinquent will decline during the year. Moody's expects flaws in foreclosure practices that have recently come to light to delay foreclosures by three to six months, further extending the window of losses for investors.
Read More »Veros’ Valuation Platform Ready for New GSE Appraisal Requirements
Veros announced Monday that its VeroSELECT valuation management platform now gives lenders the ability to order, manage, and electronically deliver appraisals in compliance with the new requirements mandated by Fannie Mae and Freddie Mac for the Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP). These initiatives are part of the GSEs' program intended to standardize and drive data quality to benefit the entire mortgage industry.
Read More »Mortgage Interest Rates Fall Back This Week
Two separate industry reports released Thursday show that mortgage interest rates across the board retreated this week, beginning the new year slightly lower than levels seen at the end of 2010, and still well below where they sat at the beginning of last year. Freddie Mac says the downward movement, however slight, ""should help aid the recovery in the housing market."" However, Bankrate warns that if Friday's jobs report proves positive, it could push mortgage rates higher.
Read More »Bank of America Agrees to $3B Settlement with Fannie and Freddie
Fannie Mae and Freddie Mac have reached an agreement with another lender to cover repurchase claims from alleged faulty underwriting standards in origination. Bank of America announced Monday that it paid a nearly $3 billion settlement to Fannie Mae and Freddie Mac on the last day of 2010 to cover repurchase claims from the two GSEs. According to BofA, the settlement resolves ""substantial legacy issues"" in the best interest of its shareholders, and the company says it is committed to putting such issues in its rearview mirror.
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