Tag Archives: Fannie Mae

Uncertainty is the greatest hindrance to the housing recovery today, according to Federal Reserve Governor Elizabeth A. Duke, who speak before the National Association of Realtors on Tuesday. Duke called on policymakers to "move forward with the difficult decisions that will affect the future of the mortgage market," deeming this the "most important solution" to today├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós struggling market. While the economy and the housing market are beginning to see some signs of ripening, Duke pointed out that lending remains tight.

The Federal Housing Finance Agency unveiled new additions to the strategic plan it released in February this year, with many changes focused on moving the secondary mortgage market back to private capital sources and creating infrastructure needed to replace Fannie Mae and Freddie Mac. The additions include four principles, such as safety and security for the residential mortgage market, stability and liquidity in housing finance, and preservation of current enterprise assets. The plan, due for enactment if passed by Congress between the years 2013 and 2017.

After suffering from bad loans during the financial crisis, Ally Financial looks to close the books on its share of ownership in the mortgage business. Executives with Ally took to the phone with investors Tuesday to explain a filing for bankruptcy protection Monday by subsidiary Residential Capital LLC. The consensus: Residential mortgage loans are out for Ally and auto finance is back in the center. Ally will still subservice loans via ResCap while it serves as counterparty to Fannie Mae and Freddie Mac.

The Obama administration made another push Friday to expand refinancing opportunities for homeowners, with HUD Secretary Shaun Donovan behind the effort to adopt any one of three bills currently in Congress. Officials told reporters in a teleconference Friday that President Barack Obama would appear with a family in Nevada later that day to tout the need for a wider refinance net. The HUD secretary outlined three bills before Congress that seek to streamline the refinance application process and increase servicer competition by reducing barriers.

Fannie Mae revealed that it produced $2.7 billion in net income for the first quarter this year, enough to prevent another draw from the Treasury, a first for the mortgage giant since it entered federal conservatorship in 2008. The favorable results offer a significant difference to a net loss of $6.5 billion from the same quarter last year, along with a net loss of $2.4 billion by the fourth quarter. Despite net income for the first quarter, Fannie Mae sustains a debt for more than $180 billion in taxpayer funds it has received with Freddie Mac since 2008.

Solvency issues re-emerged for the Federal Housing Administration in a hearing convened Tuesday by the Senate Banking Committee, with HUD Secretary Shaun Donovan calling for lower loan-to-value thresholds and more servicer competition to expand refinance opportunities. The hearing follows a bill by Sens. Barbara Boxer and Robert Menendez to roll back refinancing barriers for homeowners with GSE-held mortgages and featured the legislation as lawmakers discussed solutions to the housing crisis. The hearing quickly turned to servicer competition.

The Mortgage Bankers Association released a report Friday that ranked mortgage giant Wells Fargo last year's top commercial and multifamily mortgage originator. The trade group offered a set of comprehensive listings responsible for tracking originations by different investor groups. Wells Fargo snagged mentions in several listings, including those for commercial banks, savings institutions, Fannie Mae, Ginnie Mae, the Federal Housing Administration, Real Estate Investment Trusts, and other investors.

Talk of reform for Fannie Mae, Freddie Mac, and the Federal Housing Administration featured prominently at a hearing convened by the Senate Banking Committee Thursday to address HUD├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós budget for the next fiscal year. The FHA has fallen under scrutiny in recent years over an inability to meet the 2 percent capital ratio buffer required by law. GSE also reform remains a dead issue this election year, despite numerous proposals for reform from lawmakers and public outcry over more than $180 billion in taxpayer funds sunken into conservatorship.

Lawmakers seated on the Senate Banking Committee convened a hearing Wednesday to determine just how radically draft legislation should lift barriers to refinance opportunities for homeowners and lenders. The message from those testifying: More refinance modifications would help, but beware of the impact for investors and lenders. The Obama administration moved on expansions to HARP last fall by working with the Federal Housing Finance Agency to sign off on lower loan-to-value ratio requirements and remove obstacles for lenders and servicers.

In Maryland, New American Funding is working to help borrowers who may qualify for refinancing under HARP 2.0. The third-party lender allows struggling homeowners to avoid broker fees through their mortgage banking services, should the borrower meet the HARP 2.0 requirements. Current statistics show that 23 percent of Maryland's homeowners are considered underwater, owing more on their home than it is worth. Maryland's high number of underwater borrowers makes it the seventh-ranked state nationally, based on the percentage of struggling homeowners.