Tag Archives: Freddie Mac

Though Freddie Mac’s net income was lower this quarter than last, the GSE will still pay $2.2 billion in dividends to the U.S. Treasury for this quarter, according to its recent financial results report. The agency saw single-family revenues, purchase volumes, and mortgage-related investments all decline for Q1. These declines, according to Freddie Mac CEO Donald Layton, were due to steady interest rates and low market spreads

Volume of government-backed purchase loans rose by 10 percent in January, despite an uptick in mortgage rates. RHS loans far outpaced other categories, with FHA comprising the smallest segment. The number of first-time buyers also rose, increasing 11 percent over the year.

Freddie Mac’s total mortgage portfolio grew 4.8 percent from March 2016 to March 2017, according to recent data. The GSE has handled $98 billion in purchase and refinance loans this year to date. Serious delinquencies were down on Freddie single-family loans but stayed steady for multi-family ones.

In an effort to reduce community blight and vandalism damage to vacant properties, as well as maintain property values, Freddie Mac released an allowable for clear boarding in a recent bulletin. Freddie Mac will reimburse servicers for use of clear boarding up to $2.25 per united inch, with a maximum amount of $2,000. According to Freddie Mac, in order to qualify, the clear boarding must be made of polycarbonate material or at least the same strength, at least 3/16” thick, and properly installed.

A new white paper has proposed a detailed plan for reforming the nation’s GSEs. Offering a roadmap toward reform, the paper also outlines how to handle the transition to a new GSE system, as well as the secondary markets role in the move. The paper is designed to help legislators move GSE reform along—a goal the new administration has made clear.

The 2017 Servicer Success scorecard is a part of Freddie Mac’s Servicing Success Program, which offers analysis of servicer performance through defined metrics, benchmarks, requirements, financial incentives, and compensatory fees. The Scorecard offers metrics for both default management and investor reporting, and releases at the end of every month. New reports in the scorecard include a Rank Improvement Report and a 12-Month Rolling Scorecard Summary.

On Wednesday, Freddie Mac priced a $1.32 billion Structured Agency Credit Risk (STACR), its largest STACR to date. Freddie Mac transfers a large portion of its mortgage credit risk on some groups of loans to private investors through STACR.

According to a recent outlook report from Freddie Mac, total U.S. home sales will come in slightly under 2016’s numbers. This is due to a drop in refinancing activity, rising interest rates, and declining affordability. The outlook predicts originations will drop more than 25 percent in 2017.

Fannie Mae and Freddie Mac have made headway on goals set forth in the 2016 Scorecard by the Federal Housing Finance Agency, according to the FHFA's Progress Report released on Wednesday. GSE efforts to improve credit access, assist borrowers, and reduce taxpayer credit risk were all noted in the agency's report. FHFA is currently soliciting comments on the Progress Report at FHFA.gov.

Since Fannie and Freddie were seized by regulators in 2008, a fix has been promised. As the two GSEs, which back close to 40 percent of U.S. home loans, face the threat of requiring aid, that need for a fix has become more urgent. Senators Corker and Warner are not assured that an overhaul will succeed.