Tag Archives: Freddie Mac

Even with record-low mortgage rates, many refinancing borrowers are choosing to pay down their loan balances rather than borrow more money. According to a recent report by Freddie Mac, cash-in borrowers - those who reduced their principal balance by paying in additional money at the closing table - represented 22 percent of all borrowers who refinanced during the second quarter, up from 19 percent the previous quarter. This, Freddie said, tied the record for the third highest cash-in share since the GSE began keeping records on refinancing patterns in 1985.

Mortgage rates continued to slide downward for the week ending July 29, 2010, marking yet another round of record lows, Freddie Mac and Bankrate reported Thursday. According to Freddie Mac's Primary Mortgage Market Survey, 30-year fixed-rate mortgages averaged 4.54 percent this week, and 15-year fixed-rate mortgages fell to 4 percent. Bankrate said 30-year fixed-rate mortgages came in at 4.71 percent, and 15-year fixed-rate mortgages inched down to 4.17 percent.

David M. Moffett has been named to the board of directors at CIT Group Inc., a century-old middle market business lender that emerged from Chapter 11 just seven months ago after filing for bankruptcy in November 2009. Moffett served as CEO of Freddie Mac for a very short period during one of the most tumultuous times in the GSE's history, from when it was placed into conservatorship by the federal government in September 2008 to March 2009.

Fannie Mae and Freddie Mac are beginning to initiate foreclosures at a faster pace. According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent. LPS says the recent momentum coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the increase and volume concentrated in the very late stages of delinquency.

Freddie Mac recently named Deborah Jenkins as VP and national head of multifamily underwriting and credit. In her new role, Jenkins is responsible for managing the underwriting and credit approvals of all multifamily debt investment for Freddie Mac.

The Obama administration said Tuesday that it plans to deliver a proposal for housing finance reform to Congress by January 2011. Government officials will hold a conference on August 17 at the Treasury building in Washington D.C. to solicit input from industry stakeholders on the future of the housing finance system, Fannie Mae, and Freddie Mac. The White House says the ""heads private shareholders win, tails taxpayers lose"" structure at the GSEs makes no sense for the nation...and change is coming.

The number of past due home loans guaranteed by Freddie Mac has fallen below the 4 percent threshold. The milestone is a sign that the performance of the GSEs' loan portfolio is improving and loss mitigation efforts are having an impact, considering Freddie endured three long years of delinquency increases until March of this year. The company's latest report shows that the number of single-family mortgages at least three months past due or in foreclosure stood at 3.96 percent at the end of June. That's down from a high of 4.20 percent as recently as February.

In order to double its mortgage banking operation, Superior Bank of Alabama announced Tuesday that it will add more than 60 people to its existing operation.