Fundamental changes are probably ahead for the American mortgage system as the federal government pushes to unwind its unprecedented involvement in the housing market.
These changes could significantly raise the down payments demanded by lenders, curtail the availability of long-term mortgages with fixed interest rates, and increase the cost of borrowing in general.
The government's effort to scale back its role in housing could show up in small ways soon. In April, the Federal Housing Administration plans to raise the annual premium it charges borrowers by a quarter of a percentage point. In October, the maximum size of loans that the federal government backs is scheduled to drop to $625,500 from $729,750. The most dramatic proposal - eliminating mortgage financiers Fannie Mae and Freddie Mac - could take five to seven years.
Click Here to Read: Major Changes Ahead For Mortgage System...
Showing posts with label Fannie Mae. Show all posts
Showing posts with label Fannie Mae. Show all posts
Major Changes Ahead For Mortgage System
Thursday, March 17, 2011
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Fannie Mae,
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Freddie Mac,
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BofA May Owe Fannie, Freddie $230 Million for Foreclosure Delay
Bank of America Corp. said it will probably have to pay government-sponsored enterprises Fannie Mae and Freddie Mac an additional $230 million because of delays foreclosing on mortgages bought by the firms.
Bank of America’s agreements with Fannie Mae and Freddie Mac “provide for timelines to resolve delinquent loans through workout efforts or liquidation, if necessary,” the Charlotte, North Carolina-based lender said today in its annual report to the Securities and Exchange Commission. “In the fourth quarter of 2010, we recorded an expense of $230 million for compensatory fees that we expect to be assessed by the GSEs as a result of foreclosure delays.”
Click Here to Read: BofA May Owe Fannie, Freddie $230 Million for Foreclosure Delay...
Bank of America’s agreements with Fannie Mae and Freddie Mac “provide for timelines to resolve delinquent loans through workout efforts or liquidation, if necessary,” the Charlotte, North Carolina-based lender said today in its annual report to the Securities and Exchange Commission. “In the fourth quarter of 2010, we recorded an expense of $230 million for compensatory fees that we expect to be assessed by the GSEs as a result of foreclosure delays.”
Click Here to Read: BofA May Owe Fannie, Freddie $230 Million for Foreclosure Delay...
Towards A Fannieless Future Or Maybe Not
Well the Obama administration’s proposal(s) for remaking the country’s mortgage finance system has finally arrived. It, to my mind, is both a reminder of the paucity of leadership we currently enjoy as well as an important document around which to frame, hopefully, a private system which delivers unsubsidized mortgages.
As with health care, Obama has once again displayed his preference for allowing Congress to bang out the nuts and bolts of a major policy. He has perhaps taken it a step further this time by offering up a menu of possible structures, lest he be tagged with advocating something that might need a defense in the 2012 elections.
Click Here: Towards A Fannieless Future Or Maybe Not...
As with health care, Obama has once again displayed his preference for allowing Congress to bang out the nuts and bolts of a major policy. He has perhaps taken it a step further this time by offering up a menu of possible structures, lest he be tagged with advocating something that might need a defense in the 2012 elections.
Click Here: Towards A Fannieless Future Or Maybe Not...
The Latest Confusing Foreclosure News
Trying to keep up with what’s happening with foreclosures around the nation is confusing, indeed.
At the end of November, Fannie Mae and Freddie Mac – the government-sponsored enterprises which underwrite the bulk of mortgages in the United States – told real estate agents to resume with sales of foreclosed properties. That was a significant announcement as Fannie and Freddie had about 240,000 properties set for foreclosure at the end of September.
Click Here to Read: The Latest Confusing Foreclosure News...
At the end of November, Fannie Mae and Freddie Mac – the government-sponsored enterprises which underwrite the bulk of mortgages in the United States – told real estate agents to resume with sales of foreclosed properties. That was a significant announcement as Fannie and Freddie had about 240,000 properties set for foreclosure at the end of September.
Click Here to Read: The Latest Confusing Foreclosure News...
Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure Crisis
Fannie Mae and Freddie Mac defended their role in the foreclosure crisis in prepared testimony to Congress on Wednesday, while at least one federal regulator said the mortgage giants had contributed to the problem.
Speaking to the Senate Banking Committee at a hearing on the national foreclosure debacle, Fannie and Freddie executives emphasized that they are not responsible for managing payments by borrowers on home loans or foreclosing on homeowners when they default.
Click Here to Read: Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure Crisis...
Speaking to the Senate Banking Committee at a hearing on the national foreclosure debacle, Fannie and Freddie executives emphasized that they are not responsible for managing payments by borrowers on home loans or foreclosing on homeowners when they default.
Click Here to Read: Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure Crisis...
Fannie And Freddie Give Green Light To Resume Sales Of Foreclosures
Fannie Mae and Freddie Mac gave real estate agents the green light to resume selling foreclosed homes, after suspending the process as the robo-signing debacle unfolded the past two months.
Freddie told agents in a memo last week to "resume all normal sales activity," as the government-sponsored enterprise will "resume marketing, sales and disposing of assets previously placed 'on hold.'"
Fannie Mae told its real estate agents "to proceed with scheduling and holding the closings" of sales of homes with mortgages owned or backed by the GSE.
Click Here to Read: Fannie And Freddie Give Green Light To Resume Sales Of Foreclosures...
Freddie told agents in a memo last week to "resume all normal sales activity," as the government-sponsored enterprise will "resume marketing, sales and disposing of assets previously placed 'on hold.'"
Fannie Mae told its real estate agents "to proceed with scheduling and holding the closings" of sales of homes with mortgages owned or backed by the GSE.
Click Here to Read: Fannie And Freddie Give Green Light To Resume Sales Of Foreclosures...
Has The Federal Government Gone Subprime?
Uncle Sam sure has a lot of explaining to do.
He's spent years pumping untold billions into the housing market, only to see home prices and sales sink again.
Now he's getting hit by critics on the right and now the left, who contend our wayward uncle, in his desperation to keep the real estate market from collapsing completely, has made the ultimate down market move.
He's gone subprime, according to a growing number of critics on both sides of the political spectrum, replacing the high-cost mortgage dealers of old on the neighborhood stoop.
My guess is that readers of this blog are more familiar with the right's critique of the federal government's takeover of the mortgage market. In order to keep the mortgage market alive, Fannie Mae, Freddie Mac and the FHA let through a lot of questionable borrowers over the past two years, only to reap a whirlwind of bad loans.
Click Here to Read: Has The Federal Government Gone Subprime?...
He's spent years pumping untold billions into the housing market, only to see home prices and sales sink again.
Now he's getting hit by critics on the right and now the left, who contend our wayward uncle, in his desperation to keep the real estate market from collapsing completely, has made the ultimate down market move.
He's gone subprime, according to a growing number of critics on both sides of the political spectrum, replacing the high-cost mortgage dealers of old on the neighborhood stoop.
My guess is that readers of this blog are more familiar with the right's critique of the federal government's takeover of the mortgage market. In order to keep the mortgage market alive, Fannie Mae, Freddie Mac and the FHA let through a lot of questionable borrowers over the past two years, only to reap a whirlwind of bad loans.
Click Here to Read: Has The Federal Government Gone Subprime?...
Bankers Brace for a Tongue-Lashing
Bank executives are expecting to get an earful from lawmakers Tuesday when they defend themselves in front of the Senate Banking Committee against allegations they mishandled thousands of home foreclosures.
The banks’ likely defense – that the volume of foreclosures was so great that they were simply overwhelmed – isn’t likely to placate politicians looking to score points with struggling homeowners.
While the sputtering economic recovery has left far more people out of work than was expected, greatly hampering any recovery in the real estate market, bankers are nonetheless expected to concede that the foreclosure system is broken, and that they are working on ways to repair it. Part of the problem, the bankers will say, stems from the demands of investors – including Fannie Mae and Freddie Mac.
Click Here to Read: Bankers Brace for a Tongue-Lashing...
Wednesday, November 17, 2010
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Bankruptcy,
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Foreclosure,
Freddie Mac,
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Homeowner Makes Sign In Foreclosure Fight
Juan Guzman has a large, lawn-wide sign in his front yard labeled 'JP Morgan Chase help.' It's his last hope to save his dream home. The Acreage man built his house in 2007 but couldn't handle the mortgage payment of $3,600 a month. He said he tried negotiating a lower loan from his bank but it wouldn't budge. Last year Guzman became unemployed and now his house is in foreclosure.
Click Here to Read: Homeowner Makes Sign In Foreclosure Fight....
Click Here to Read: Homeowner Makes Sign In Foreclosure Fight....
Talk Is Cheap for Fannie and Freddie
When it comes to Fannie Mae and Freddie Mac, the most likely course of action over the coming year might end up being inaction. Not that you would know, listening to the Obama administration or its Republican opponents. Both are preparing plans to overhaul the mortgage giants and housing finance.
The administration says it will have proposals ready by January. Its revamp may include some form of continued backstop for mortgage-finance. Republicans in their "Pledge to America" last week, meanwhile, called for an end of the "government takeover" of Fannie and Freddie and a "shrinking of their portfolios."
For all the talk, paralysis may be more likely, especially if elections change control in Congress. And secretly, this may be just what politicians from both parties prefer.
Click Here to Read: Talk Is Cheap for Fannie and Freddie...
The administration says it will have proposals ready by January. Its revamp may include some form of continued backstop for mortgage-finance. Republicans in their "Pledge to America" last week, meanwhile, called for an end of the "government takeover" of Fannie and Freddie and a "shrinking of their portfolios."
For all the talk, paralysis may be more likely, especially if elections change control in Congress. And secretly, this may be just what politicians from both parties prefer.
Click Here to Read: Talk Is Cheap for Fannie and Freddie...
Fannie and Freddie Foreclosures Increasing at Fastest Rate Yet
Another day, more foreclosure news, more bad news at Fannie and Freddie, ho-hum…
From a story today at Housing Wire by Jacob Gaffney, we learn that the number of homes with mortgages owned by government sponsored entities (GSEs) Fannie Mae and Freddie Mac entering foreclosure is at an all-time high, and is still increasing.
Thus far, 1.46m homes have entered foreclosure in 2010. In the same amount of time in 2009, we had 1.68m foreclosures, and 1.25m in 2008. According to a study by Lender Processing Services cited by the article, the rate foreclosure starts are increasing by is the fastest pace yet.
Click Here To Read: Fannie and Freddie Foreclosures Increasing at Fastest Rate Yet...
From a story today at Housing Wire by Jacob Gaffney, we learn that the number of homes with mortgages owned by government sponsored entities (GSEs) Fannie Mae and Freddie Mac entering foreclosure is at an all-time high, and is still increasing.
Thus far, 1.46m homes have entered foreclosure in 2010. In the same amount of time in 2009, we had 1.68m foreclosures, and 1.25m in 2008. According to a study by Lender Processing Services cited by the article, the rate foreclosure starts are increasing by is the fastest pace yet.
Click Here To Read: Fannie and Freddie Foreclosures Increasing at Fastest Rate Yet...
Monday, August 2, 2010
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Defaulted Loans,
Distressed Properties,
Fannie Mae,
Foreclosure,
Freddie Mac,
Government
The World According To Fannie Mae: More Updates To Its Appraisal Policies
Fannie Mae has updated its appraisal policies. Most of the appraisal related issues are effective September 1st. Here's an overview.
Inclusion of interior photographs in the appraisal report.
On or after September 1st, interior photos of the following must be provided: kitchen; all bathrooms; main living area; examples of physical deterioration, if present; examples of recent updates, such as restoration, remodeling and renovation, if present. This falls into the category of "about time."
Click Here to Read More: The World According To Fannie Mae: More Updates To Its Appraisal Policies...
Inclusion of interior photographs in the appraisal report.
On or after September 1st, interior photos of the following must be provided: kitchen; all bathrooms; main living area; examples of physical deterioration, if present; examples of recent updates, such as restoration, remodeling and renovation, if present. This falls into the category of "about time."
Click Here to Read More: The World According To Fannie Mae: More Updates To Its Appraisal Policies...
A Heavy Price For 'Cheap' Mortgages
Washington's efforts to keep the housing market afloat are brew ing up another mortgage melt down -- except that this time, Uncle Sam will start off holding the bag.
Mortgage rates hit new lows last month as investors gobbled up residential, mortgage-backed securities -- MBSs, the very financial instruments that triggered the subprime crisis.
Short-term, that will allow many cash-strapped homeowners to refinance and lower their monthly interest payments -- help to the beleaguered housing market. But it represents a ticking time bomb -- which will blow up in the face of the taxpayers.
Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/heavy_price_for_cheap_mortgages_rt9bXdx4aXYYX4NUf0NjaO#ixzz0tIb2lcw9
Mortgage rates hit new lows last month as investors gobbled up residential, mortgage-backed securities -- MBSs, the very financial instruments that triggered the subprime crisis.
Short-term, that will allow many cash-strapped homeowners to refinance and lower their monthly interest payments -- help to the beleaguered housing market. But it represents a ticking time bomb -- which will blow up in the face of the taxpayers.
Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/heavy_price_for_cheap_mortgages_rt9bXdx4aXYYX4NUf0NjaO#ixzz0tIb2lcw9
Monday, July 12, 2010
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Fannie Mae,
Freddie Mac,
Government,
Mortgage Crises,
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Fannie/Freddie Bailout May Reach $1 Trillion
Just when Americans thought that the bailouts were over, Bloomberg Financial News service reported on June 13 that the final tab for Fannie Mae and Freddie Mac bailout is increasing and may total as much as $1 trillion.
“The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history,” Bloomberg explained.
The news comes as criticism over the exposure of Fannie and Freddie's holding 75 percent of the home mortgage market at the time the housing bubble popped in 2008 is crystalizing. But last month the Wall Street Journal reported that while Fannie and Freddie's exposure to the home market has decreased in that past two years, total federal government exposure to home mortgages has continued to explode. “Government-related entities backed 96.5% of all home loans during the first quarter, up from 90% in 2009, according to Inside Mortgage Finance,” the Journal summarized. Inside Mortgage Finance notes that while the market share of Fannie and Freddie has declined slightly from the 75 percent high, other Government Sponsored Enterprises (GSE) and federal agencies have more than picked up the slack.
Click Here to Read: Fannie/Freddie Bailout May Reach $1 Trillion...
“The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history,” Bloomberg explained.
The news comes as criticism over the exposure of Fannie and Freddie's holding 75 percent of the home mortgage market at the time the housing bubble popped in 2008 is crystalizing. But last month the Wall Street Journal reported that while Fannie and Freddie's exposure to the home market has decreased in that past two years, total federal government exposure to home mortgages has continued to explode. “Government-related entities backed 96.5% of all home loans during the first quarter, up from 90% in 2009, according to Inside Mortgage Finance,” the Journal summarized. Inside Mortgage Finance notes that while the market share of Fannie and Freddie has declined slightly from the 75 percent high, other Government Sponsored Enterprises (GSE) and federal agencies have more than picked up the slack.
Click Here to Read: Fannie/Freddie Bailout May Reach $1 Trillion...
US Mortgage Rates Steady At Or Near Record Lows
U.S. mortgage rates stayed at or near record lows in the past week, with the 30-year fixed rate 1/2 percentage point lower than a year ago, home funding company Freddie Mac (FRE.N)(FRE.P) said on Thursday.
In the midst of volatile bond markets, home loan rates continued to keep affordability high.
Demand for loans to buy homes tumbled to 13-year lows in May after spiking in prior weeks, when buyers raced to sign contracts before a homebuyer tax credit expired on April 30. The buyer retreat is seen as temporary, with spring sales pulled into earlier months because of the credit.
Click Here to Read: US Mortgage Rates Steady At Or Near Record Lows...
In the midst of volatile bond markets, home loan rates continued to keep affordability high.
Demand for loans to buy homes tumbled to 13-year lows in May after spiking in prior weeks, when buyers raced to sign contracts before a homebuyer tax credit expired on April 30. The buyer retreat is seen as temporary, with spring sales pulled into earlier months because of the credit.
Click Here to Read: US Mortgage Rates Steady At Or Near Record Lows...
Thursday, June 3, 2010
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Consumer Credit,
Fannie Mae,
FHA,
Financing,
First Time Homebuyer,
Freddie Mac,
Mortgage Rates
Freddie and Fannie Won't Pay Down Your Mortgage
Pressure is mounting on loan servicers and investors to reduce troubled homeowners' loan balances...but the two largest owners of mortgages aren't getting the message.
Fannie Mae and Freddie Mac, which are controlled by the federal government, do not lower the principal on the loans they back, instead opting for interest rate reductions and term extensions when modifying loans.
But their stance is out of synch with the Obama administration, which is seeking to expand the use of principal writedowns. In late March, it announced servicers will be required to consider lowering balances in loan modifications.
Click to read: Freddie and Fannie won't pay down your mortgage...
Fannie Mae and Freddie Mac, which are controlled by the federal government, do not lower the principal on the loans they back, instead opting for interest rate reductions and term extensions when modifying loans.
But their stance is out of synch with the Obama administration, which is seeking to expand the use of principal writedowns. In late March, it announced servicers will be required to consider lowering balances in loan modifications.
Click to read: Freddie and Fannie won't pay down your mortgage...
Sales of New Homes in U.S. Climb by Most Since 1963
Purchases of new homes in the U.S. surged in March by the most in almost five decades as buyers rushed to qualify for a government tax credit and the weather turned milder.
Demand may remain elevated through this month as Americans take advantage of a tax credit worth as much as $8,000 before it ends at the end of next week. The outlook for the rest of the year hinges on sustained job gains as homebuilders struggle against a wave of foreclosures that is depressing home prices and adding to inventory.
Click to read article: Sales of New Homes in U.S. Climb by Most Since 1963...
Demand may remain elevated through this month as Americans take advantage of a tax credit worth as much as $8,000 before it ends at the end of next week. The outlook for the rest of the year hinges on sustained job gains as homebuilders struggle against a wave of foreclosures that is depressing home prices and adding to inventory.
Click to read article: Sales of New Homes in U.S. Climb by Most Since 1963...
Fannie: Buying Another Home Is Easier If You Don’t Walk Away
About a month ago, one of our readers emailed me and asked why the mortgage industry wasn’t making things easier for borrowers who didn’t walk away from their mortgages. Angry over the fact that borrowers were walking away from their responsibilities, furthering the problems that have contributed to the housing downturn — “Walking away only because you are underwater is only going to further the problem” — our reader suggested, “If we can arm the people that will continue to pay with some ammunition, maybe they can help.”
A recent announcement by Fannie Mae is step in that very direction. On applications submitted after July 1, 2010, borrowers who lost their homes via a short sale will only have to wait two years before they can apply for another Fannie-backed mortgage. Previously, borrowers had to wait at least four years.
Click here for the entire article: Fannie: Buying Another Home Is Easier If You Don’t Walk Away...
A recent announcement by Fannie Mae is step in that very direction. On applications submitted after July 1, 2010, borrowers who lost their homes via a short sale will only have to wait two years before they can apply for another Fannie-backed mortgage. Previously, borrowers had to wait at least four years.
Click here for the entire article: Fannie: Buying Another Home Is Easier If You Don’t Walk Away...
Fannie Mae says unsold homes are slowing recovery
Fannie Mae's economic and mortgage market analysis group said Monday that the housing market is stabilizing but that excess inventory continues to hinder a recovery.
The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.
Click here to read entire article: Fannie Mae says unsold homes are slowing recovery...
The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.
Click here to read entire article: Fannie Mae says unsold homes are slowing recovery...
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