Tag Archives: FHFA

Lawmakers from both sides of the aisle introduced legislation Thursday to curb multibillion-dollar bonuses for senior-level executives with Fannie Mae and Freddie Mac. Sens. Mark Begich and John Thune sponsored the bill, colorfully titled the Stop the Outrageous Pay at Fannie Mae and Freddie Mac Act. The bill would assign federal pay scale to employees with either of the GSEs, capping the highest salaries at $275,000. It would also repurpose any such funds so designated this year to pay down the politically important national debt.

The Federal Housing Finance Agency (FHFA) reported a 1.0 percent rise in U.S. house prices between the timeframe of October to November. The previously reported 0.2 percent decrease in October was revised downward to reflect a 0.7 percent decrease, according to FHFA. Dr. Alex Villacorta of Clear Capital delivered insights on the recent findings, stating in part, "As this index is calculated using sale prices from only the conforming loan segment of the market, it has a tendency to understate both gains and losses than the broader market."

During the month of November alone, Fannie Mae and Freddie Mac handled approximately 36,000 mortgages versus October's 34,000 mortgages within the Home Affordable Refinance Program. President Obama's most recent proposition aims to assist more households in refinancing, and in the president's recent State of the Union address, he presented possible modifications to the Home Affordable Refinance Program stating that "responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief."

New-home sales crawled to a seasonally adjusted annual rate of 307,000 in December despite modest signs of recovery. The Commerce Department said Thursady that new-home sales fell 2.2 percent below expectations from November, which held that homebuyers would pick up a seasonally adjusted 314,000 homes annually. New homes from last month carried a median sales price around $210,300, with the average sales price hovering around $266,000. Experts suggest contract failures, foreclosures, short sales, and tight credit helped slow sales.

Former Fannie Mae CEO Daniel Mudd resigned from his role as CEO of Fortress Investment Group Wednesday amid ongoing controversy related to a Securities and Exchange Commission suit. The company announced his resignation in a statement, not long after Mudd had decided to take a leave of absence from his role.

Earlier Tuesday the FDIC went forward with a notice of proposed rulemaking in the Federal Register that calls for annual stress tests to determine capital adequacy for banks. The notice built on the Basel Accords, which the Basel Committee on Banking Supervision revisited with help from a consortium of central bankers over 2010 and 2011. Basel III is the latest by BCBS to require stress tests for systemically important financial institutions, which include Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and several other U.S. lenders.

The Justice Department issued a legal opinion Thursday in which it backed President Barack Obama's decision to recess appoint Richard Cordray director of the Consumer Financial Protection Bureau last week. The agency wrote that three-day pro forma sessions fail to constitute an actual session for the Senate. Obama riled the industry when he appointed Cordray and several others despite three-day sessions in which several lawmakers would meet without filing motions to consider nominees or legislation. Critics charge that the decision breaks with years of legal precedent under the agency.

Twenty-eight California Democrats urged President Barack Obama Wednesday to sidestep Congress by recess-appointing another agency director ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô this time for the Federal Housing Finance Agency. Democratic signers criticized the FHFA for failing to assist more homeowners and prevent foreclosures, beginning with an energy program described by the members of Congress as one that would lower energy payments and help Americans afford their mortgages. Last week Obama bypassed Republican opposition by recess-appointing Richard Cordray.

Ed Delgado, CEO of our parent company, the Five Star Institute, reflects on 2011 as we enter a New Year. He takes into account events from around the economy over the last year to forecast a period of hoped-for renewal in 2012.

The head of Fortress Investment Group has left his position with the company and has simultaneously stepped down from the company's board of directors. Daniel Mudd, who has previously served as the CEO of Fannie Mae, is currently one of six former GSE executives under investigation by the U.S. Securities and Exchange Commission for fraud-related charges. The SEC's accusations encompass fraudulent actions regarding the GSEs' exposure to subprime loans.