fhfa: Republicans Seek to Block Housing Funds Payments
- 01/28/15 09:44 AM
As I wrote in my post dated December 14, 2014, entitled "Fannie / Freddie To Make Housing Fund Payments" Mel Watt, Director of the Federal Housing Finance Agency ordered FNMA and FHLMC to make their payments to the Housing Trust Fund and the Capital Magnet Fund as required under the Housing and Economic Recovery Act of 2008. The GSEs never made a payment to the housing funds since that legislation was passed. Now House Republicans, led by representative Ed Royce (R-California) are about to introduce a bill entitled "Pay Back the Taxpayers Act of 2015". The measure, which has not yet been introduced … (4 comments)
fhfa: Fannie, Freddie Told to Ease Credit Standards
- 01/19/15 07:01 AM
Last week it was reported by REUTERS that Mel Watt, Director of the Federal Housing Finance Agency ("FHFA") has instructed Fannie Mae and Freddie Mac to "explore 'alternate' credit score models and the credit history of the loans they support". Watt has stated that expanding credit availability is an important goal, but also indicated that it must be balanced against the risks associated with loan losses. As you will recall, Fannie and Freddie have both introduced 97% LTV loan products. They are going to be pursuing other means to make financing available to more home buyers. Among other things, FHFA wants … (11 comments)
fhfa: Petition to End Conservatorship
- 01/01/15 10:01 PM
In an article dated 12.31.2014, DSnews reported that an online petition has been posted, addressed to the Obama Administration, to end the conservatorship of FNMA and FHLMC. The petition organizers hope to obtain 100,000 signatures by 01.19.2015. The petition was posted as of 12.20.2014 and has 968 signatures as of the writing of this post. The petition is HERE. The article indicates that the conservatorship is costing taxpayers money and that the GSEs have been turning a profit since 2012. The article cites that more than several law suits are pending against FHFA and the GSEs to stop the sweep of … (4 comments)
fhfa: FHFA Takes Aim At "Super-Priority Liens"
- 12/23/14 11:49 PM
In a statement released by the Federal Housing Finance Agency and reported in DS news the Federal Housing Finance Agency ("FHFA") has indicated that it will aggressively protect the lien position of mortgages backed by Fannie Mae and Freddie Mac. Certain energy retrofit financing programs adopted by states and municipalities and homeowners' associations are given super-priority for the sums due them. They have the ability to wipe out the lien securing a mortgage in the event the HOA or energy financing program is forced to foreclose its lien to collect sums due. Some energy financing programs are being treated as tax … (6 comments)
fhfa: Bailout Repayment Bad For Borrowers
- 12/16/14 10:58 PM
A lenders' group has called upon the U.S. Department of the Treasury ("DOT") and the Federal Housing Finance Agency ("FHFA") to restructure the bailout payments that are required from FNMA and FHLMC to the federal government for the bailout of the GSEs after the burst of the housing bubble. In an article appearing today in DSNews it is reported that a group known as Community Mortgage Lenders of America ("CMLA") has requested that DOT and FHFA amend the repayment agreement between the government and the GSEs to allow the GSEs to retain more of their profits and restore their capital positions so … (5 comments)
fhfa: Fannie / Freddie To Make Housing Fund Payments
- 12/13/14 11:46 PM
Mix results seem to abound about the announced payments to be made by Fannie Mae and Freddie Mac to federally sponsored national housing trust funds for very low and low income housing. FHFA Director Melvin Watt has lifted the suspension of payments by the GSEs that were requied under the Housing and Econimic Recovery Act of 2008 ("HERA"). In fact, the GSEs never made any payments to the housing funds as the GSEs went into conservatorship and HERA provides that the FHFA can suspend the required payments if the payments would contribute to the financial instability of the GSEs or would … (8 comments)
fhfa: Little Impact by Policy Change
- 11/28/14 07:07 PM
The Federal Housing Finance Authority ("FHFA") recently announced a policy change for FNMA and FHLMC regarding the sale of their REO inventory to the foreclosed party , but this change in policy will have a limited impact based upon information in a report published by Bloomberg News. Previously, if you were foreclosed out of your home by FNMA or FHLMC, you (or a third party on your behalf) could not buy back your home for its current value, but had to pay the balance that was due on the foreclosed mortgage. Under the policy change recently announced, foreclosed parties will now … (6 comments)
fhfa: A Peak Inside "G-fees"
- 11/23/14 07:58 PM
The Federal Housing Finance Agency ("FHFA") has released its annual report to Congress and there are a couple of interesting bits of information that are revealed about the guaranty fees ("G-fees") that are collected by FNMA and FHLMC for the guarantees that they issue in connection with mortgage loans and mortgage-backed securities. The first thing that is listed in an article in Mortgage News Daily that was released mid-afternoon, Friday 11.21.2014, is that the G-fees have doubled since 2009. Generally the formula for determining G-fees is based on three costs. The GSEs determine the cost of expected losses, add the cost … (4 comments)
fhfa: Increase of Guaranty Fees On Hold
- 11/20/14 09:14 PM
As you may have heard, Mel Watt, the new director of the Federal Housing Finance Agency ("FHFA") testified before the Senate Banking Committee on Wednesday, 20141119. Watt was essentially there to defend the stance taken in January of this year to postpone any increase in the guaranty fees charged by Fannie Mae and Freddie Mac so the FHFA could study and analyze the situation more thoroughly. Watt did indicate that guidelines for increased fees would be rolled out during the first quarter of 2015. Watt was criticized by Republicans for delaying the fee increase and for considering the return of the … (5 comments)
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Randy Kirsch
(NMLS# 1012303) Your Dedicated Mortgage Consultant
As I wrote in my post dated December 14, 2014, entitled "Fannie / Freddie To Make Housing Fund Payments" Mel Watt, Director of the Federal Housing Finance Agency ordered FNMA and FHLMC to make their payments to the Housing Trust Fund and the Capital Magnet Fund as required under the Housing and Economic Recovery Act of 2008. The GSEs never made a payment to the housing funds since that legislation was passed. Now House Republicans, led by representative Ed Royce (R-California) are about to introduce a bill entitled "Pay Back the Taxpayers Act of 2015".
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