Tag Archives: Freddie Mac

Fixed-rate mortgages have become the dominant choice among borrowers looking to refinance their home loans, with more applicants gravitating toward shorter loan terms. A study by Freddie Mac on loan transition trends found that in the third quarter, more than 95 percent of homeowners who refinanced chose fixed-rate loans, regardless of whether their original loan was an adjustable- or fixed-rate mortgage. Borrowers who previously held shorter-term mortgages also showed a stronger preference for staying with a 15-year or 20-year loan.

Embrace Home Loans, a direct lender for Fannie Mae and Freddie Mac, has met the licensing requirements of the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. The company said it has been preparing for the SAFE Act for more than a year and consequently has invested thousands of man-hours and millions of dollars in resources to ensure all of its loan officers are ready to meet the requirements of the SAFE Act for originating loans in multiple states.

President Obama said Friday that he intends to nominate North Carolina Banking Commissioner Joseph A. Smith, Jr. to head the Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac. If confirmed by the Senate, Smith will replace Edward DeMarco, who has served as acting director of the agency since September 2009. The timing of Smith's appointment would put him at the center of the administration's efforts to reform the nation's housing finance system and decide the future of the GSEs.

Interest rates on home loans sunk to new lows this week, according to figures released by Freddie Mac Thursday. The GSE surveyed 125 lenders across the country and found that rates on 30-year mortgages are now averaging 4.17 percent, while the average rate for 15-year loans dropped to 3.57 percent. The GSE's chief economist expressed concern that although rates are at their lowest level in more than a half century, they've done little to pull would-be buyers from the sidelines as the housing recovery continues to slow.

Freddie Mac's report on mortgage interest rates this week says long-term 30-year rates rose slightly, while 15-year rates eased and short-term adjustable-rate mortgages set new lows. A separate study from Bankrate claims mortgage interest rates dropped across the board to record lows. On Wednesday, the Federal Reserve announced another injection of $600 billion into the nation's sluggish economy, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much.

Commercial and multifamily mortgage loan originations during the third quarter jumped 15 percent from the previous quarter and were 32 percent higher than during the same period last year, according to data released by the Mortgage Bankers Association (MBA) Thursday. Origination volumes for Fannie Mae, Freddie Mac, and life insurance companies were relatively strong, MBA says, but commercial mortgage borrowing at banks fell on both a quarter-over-quarter and year-over-year basis.

Freddie Mac said Wednesday that it lost $2.5 billion during the third quarter of this year. Add to that the $1.6 billion dividend payment the GSE had to make to Treasury on stock the company relinquished in exchange for bailout money, and Freddie Mac reported a net loss attributable to common shareholders of $4.1 billion. The company is asking Treasury for a draw of $100 million in taxpayer dollars. Since Freddie Mac was placed under government control, it has needed $64.2 billion to stay afloat.

The Securities and Exchange Commission (SEC) is putting mortgage lenders on alert regarding disclosures about potential losses from foreclosure paperwork defects and loans they may be forced to buy back from investors. In a letter sent to the chief financial officers of publicly traded banking companies, the federal agency reminded lenders that they are obligated to relay to their investors any known trends, commitments or uncertainties that they expect could have an ""unfavorable impact"" on the company's financial results.

Freddie Mac announced Tuesday that it has terminated its relationship with the law offices of David J. Stern, P.A. in Plantation, Florida. Fannie Mae, too, says it has suspended business with the so-called Florida foreclosure mill. The Stern law firm is one of the largest in the state, processing thousands of cases a month, and had been retained by both Fannie and Freddie as a preferred legal counsel for its servicers to go to handle pending foreclosures and home repossessions.

The percentage of home loans 90 or more days past due held by the nation's two largest mortgage companies has declined yet again. Both Fannie Mae and Freddie Mac have reported a steady drop in their single-family delinquency rates since February of this year. According to the latest figures from Fannie, its serious delinquency rate fell to 4.70 percent in August. Freddie's dropped to 3.80 percent at the end of September. Movement in the two GSEs' multifamily delinquency rates was mixed.