Tag Archives: FHFA

The principal reduction debate resurfaced after 45 members of the House of Representatives--led by Rep. Elijah E. Cummings (D-Maryland) and John F. Tierney (D-Massachusetts)--sent a letter to President Obama, urging him to replace Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco with a permanent director.

Realtors in December expected prices to rise by about 3.5 percent over the next year, while consumer estimates were more modest at 2.5 percent for the same time period, Capital Economics noted in its monthly housing report. The estimates show a growing optimism among those groups. But, with the low supply of inventory, Capital Economics anticipates much bigger gains.

After steadily dropping throughout the year, mortgage rates closed out 2012 with one final monthly decline, according to the Federal Housing Finance Agency's (FHFA) December index. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) was 3.28 percent in December, down from 3.36 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.42 percent, down from 3.49 percent the previous month.

The last few weeks have seen a deluge of new rules from the Consumer Financial Protection Bureau (CFPB) and other regulatory agencies, but a new report from the U.S. Government Accountability Office (GAO) says the reform process is still coming along slowly. As of the end of 2012, GAO estimates regulators have issued rules for approximately 48 percent of the Dodd-Frank provisions that call for them. Most of the effective deadlines for those rules have not yet been reached, the agency says.

The Federal Housing Finance Agency and General Electric reached a settlement to resolve claims of faulty mortgage-backed securities sold to Freddie Mac.

Consistent with most industry indices, the Federal Housing Finance Agency (FHFA) reported continued gains in its most recent House Price Index. On a seasonally adjusted basis, prices increased 0.6 percent from October to November. This rate matches the previous month's revised index, which was revised from a 0.5 percent increase to a 0.6 percent increase. National home prices have increased 5.6 percent over the 12-month period ending in November, according to FHFA. The current index is 15.2 percent lower than the national peak.

U.S. Senator and Senate Banking Committee member Bob Corker (R-Tennessee) warned federal regulators Tuesday to stick to simplified, synchronized lending rules in order to avoid driving out private capital. Corker specifically pointed to the qualified residential mortgage (QRM) rule, which includes an exemption on risk retention for loans sold to Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA)--an exemption Corker believes may drive lenders away from the private market.

The debt ceiling controversy and its impact on the nation's financial credibility demands a solution that will last for more than just a few months.

Starting in January 2014, mortgage lenders will work under new rules governing the handling of appraisals and other home value estimates. The Consumer Financial Protection Bureau (CFPB) announced Friday the adoption of a new rule intended to improve consumer access to appraisal reports. In addition, the CFPB (in partnership with five other federal regulatory agencies) issued a rule establishing specific appraisal requirements for higher-priced mortgage loans and properties flipped within six months of purchase.

Bank of America and Fannie Mae reached a $10.3 billion agreement Monday to resolve repurchase claims on loans originated from 2000 through 2008.