From the start of QM to the end of quantitative easing, the past year saw plenty of big news in the mortgage and financial markets. As the new year rolls in, MReport is taking a look at some of the biggest secondary market headlines of 2014.
- Fannie, Freddie Investors File Another Suit Against U.S.: The ongoing battle over profits at Fannie and Freddie took another turn with the filing of additional lawsuits by investors led by New York-based hedge fund giant Pershing Square Capital Management. The suit revolves around the Treasury's sweeping of GSE profits, which critics say created a windfall for the government at the expense of shareholders.
- BofA, Justice Department Announce Record Settlement: Less than a year after JPMorgan Chase struck a landmark deal with the government, Bank of America agreed to pay nearly $17 billion to resolve claims surround the sale of problem mortgages. The agreement marked the largest civil settlement with a single entity in the history of the United States.
- Fed, SEC Approve Finalized QRM Rule: As policymakers had hoped, regulators released in October their finalized qualified residential mortgage rule. The rule, first proposed in 2011, sets certain lending standards and a risk retention framework for lenders packing their mortgages for the secondary market.
- GSE Reform in a Post-Midterm Congress: Republicans swept Washington in November, and as always, elections have consequences. But what do the midterm results mean for Fannie and Freddie, whose fate has been a topic of debate on Capitol Hill?
- Fannie, Freddie Tweak Mortgage Repurchase Reqs: In a move meant to reassure lenders, the GSEs retooled their mortgage repurchase requirements to provide clarity about the potential risk of buybacks.