FHFA

Browse articles from all of our Newsletters related to FHFA.

November 12, 2018 - Inside the CFPB

CFPB and FHFA Release First Edition of Loan-Level Dataset

The CFPB and the Federal Housing Finance Agency last week for the first time released survey results from the National Survey of Mortgage Originations, a loan-level dataset the two agencies administer jointly. The quarterly survey queries borrowers about their experiences getting a mortgage, their perceptions of the mortgage market, and future expectations among others. The data cover closed-end first-lien residential mortgages newly reported to one of the ...


November 9, 2018 - Inside The GSEs

GSE Roundup

FHFA and CFPB Release New Loan-Level Dataset. The Federal Housing Finance Agency along with the Consumer Protection Finance Bureau on Nov. 8 released for public use a new loan-level dataset collected through the National Survey of Mortgage Originations (NSMO) that provides insights into borrowers’ experiences in getting a residential mortgage. FHFA Deputy Director Sandra Thompson said, “The goal of the survey is to obtain information ... [Includes four briefs]


November 9, 2018 - Inside The GSEs

FHFA Looks to Condense FHLBank Housing Goal Requirements

The Federal Housing Finance Agency wants to do away with some of the targeted housing goals for the Federal Home Loan Banks in favor of a more streamlined approach. The regulator issued a proposed rule last week that would remove separate home-purchase mortgage targets for low-income families, low-income areas, very low-income families, and a target for low-income family refinance mortgages. The FHFA recommends replacing those four goals with one succinct goal that doesn’t ...


November 9, 2018 - Inside The GSEs

FHFA Says Freddie Missed Two Low-Income Housing Goals

The Federal Housing Finance Agency’s annual report on housing showed that Freddie Mac fell short of meeting two of its four single-family affordable housing goals for 2017. The GSE came close but didn’t meet the low-income and very low-income purchase goals. The low-income goal was 24.0 percent and Freddie came in at 23.2 percent. The very low-income purchase target was 6.0 percent and Freddie was at 5.7 percent. The FHFA recently notified Freddie of the shortage ...


November 9, 2018 - Inside The GSEs

GSE Shareholders Urge Judge to Reject FHFA’s Request

Fannie Mae and Freddie Mac shareholders in a class action suit are urging U.S. District Judge Royce Lamberth to reject the government’s request to reconsider his opinion. On Sept. 28, Royce ruled that the Treasury sweep breached an implied covenant of good faith. That ruling paved the way for shareholders to continue their case against the government. But the Federal Housing Finance Agency and the GSEs are challenging that ruling. They filed a motion on Oct. 15 asking for ...


November 9, 2018 - Inside The GSEs

Debate on Gov’t Role in Mortgage Finance Continues into 2019

There is widespread consensus about the future role of the government in mortgage finance, but it’s by no means homogenous. The Trump administration gets to name a new director of the Federal Housing Finance Agency who can work with Treasury to steer the GSEs toward a revised, likely narrower, role. The new FHFA chief will have command of the enterprises for five years, with dim prospects of Congress tackling long-term reform. Michael Stegman, senior fellow for housing policy at ...


November 2, 2018 - Inside FHA/VA Lending

QM Patch Expiration Could Shift More High-DTI Loans to FHA

Certain potential changes could materially affect origination volume and determine the government-sponsored enterprises’ direction going forward, according to analysts. One of those changes could have a significant impact on the FHA market. Wells Fargo Securities analysts recently looked at three potential developments in the Fannie Mae/Freddie Mac sphere and evaluated their effects on the broader mortgage market. Two of those potential changes – loan limits and guarantee fees – are controlled directly by the Federal Housing Finance Agency, while the third relates to the temporary GSE qualified-mortgage exemption, or “QM patch,” which could affect the FHA market. All three factors loom over the mortgage landscape as the FHFA expects a new director in January 2019, who is likely to be more right leaning and could shift the focus back to shrinking the ...


November 1, 2018 - Inside Mortgage Finance

Experts Expect Some Effort by Trump FHFA Appointee To Curb GSE Footprint But Not Enough to Roil Markets

Close observers of the politics of housing finance generally expect the next director of the Federal Housing Finance Agency to steer Fannie Mae and Freddie Mac toward a smaller market presence without creating a huge disruption in the industry.


October 26, 2018 - Inside The GSEs

Mortgage Translations a Good Initial Step, More Clarity Needed

The Federal Housing Finance Agency launched a website last week with frequently used mortgage documents and educational materials translated to Spanish to better help borrowers not proficient in English. But some in the industry are still concerned about potential assumptions and legal ramifications.


October 26, 2018 - Inside The GSEs

IG Cites FY19 Challenges with FHFA’s Oversight of GSEs

The Inspector General of the Federal Housing Finance Agency issued another report criticizing the regulator’s oversight of the GSEs and the Federal Home Loan Banks.


October 26, 2018 - Inside MBS & ABS

Government Wants Court to Reconsider Recent Shareholder ‘Win’ in Breach of Good Faith Claim

The Federal Housing Finance Agency, Fannie Mae and Freddie Mac are questioning the logic behind a recent federal court ruling that appears to give investors in the government-sponsored enterprises’ stock a glimmer of hope in their legal battles with the federal government.


October 25, 2018 - Inside Mortgage Finance

A Sure Bet for the New FHFA Director: No More Fannie/Freddie Pilot Programs?

As the White House continues looking for the right candidate to head the Federal Housing Finance Agency, industry trade group officials and stakeholders have come to the conclusion that the days of new “pilot” programs for Fannie Mae and Freddie Mac may be over.


October 12, 2018 - Inside The GSEs

FHFA Publishes 2019 Annual Performance Plan

The Federal Housing Finance Agency published its 2019 annual performance plan last week for overseeing the GSEs and Federal Home Loan Banks next year. The performance plan supports the FHFA’s long-range strategic plan, and includes goals, performance measures and targets, and strategies to accomplish those goals.


October 12, 2018 - Inside The GSEs

Fannie Sells Three VA Buildings in Prep for Office Consolidation

Fannie Mae recently sold its three Northern Virginia buildings as part of its plan to consolidate the 1.5 million square feet it has in office space in Virginia into one central hub. The buildings were sold to MRP Realty and Artemis Real Estate Partners. But Fannie will continue to occupy the buildings until its new 8,500 square foot headquarters at Reston Gateway, also in Virginia, is completed in 2022.


October 12, 2018 - Inside The GSEs

FHFA Guidance on Interest Rates, Third-Party Provider Relationships

The Federal Housing Finance Agency recently issued guidance to the GSEs and Federal Home Loan Banks on managing interest rate volatility and third-party provider relationships. The regulator wants firm policies in place to manage the risks posed by changing interest rates and cautioned that excessive interest rate risk can threaten liquidity, earnings, capital and solvency.


October 12, 2018 - Inside The GSEs

FHFA Requests Input on DTS Modifications from Fannie

Fannie Mae is looking to make about 22 changes to its duty-to-serve plan and the Federal Housing Finance Agency wants input on four of them. Both Fannie and Freddie Mac released their duty-to-serve underserved markets plans for 2018-2020 in December 2017. DTS is aimed at financing for low- and moderate-income families.


October 12, 2018 - Inside The GSEs

Upcoming FHFA Hearing to Focus on Oversight of GSE Pilots

Pilot programs implemented by Fannie Mae and Freddie Mac over recent years will be the focus of a Senate Banking, Housing and Urban Affairs Committee hearing next week. As complaints mount about the process in which a number of pilots were introduced and their threat to the primary market, the Senate decided to tackle the issue during the Oct. 18 “Oversight of Pilot Programs at Fannie Mae and Freddie Mac” hearing.


October 12, 2018 - Inside The GSEs

GSE Shareholders Win Will Allow Plaintiffs to Press Forward

A recent court ruling that affirmed the validity of claims that the GSE net worth sweep breached an implied covenant of good faith is a big deal for shareholders, according to the plaintiff’s attorney. David Thompson of Cooper and Kirk told Inside The GSEs this week that U.S. District Judge Royce Lamberth’s decision is a “significant victory” for the plaintiffs.


October 11, 2018 - Inside Mortgage Finance

FHFA Wants Fannie, Freddie, FHLBanks to Manage Risks From Interest Rate Volatility, Create Rate Risk Framework

The Federal Housing Finance Agency recently issued new guidance requiring Fannie Mae, Freddie Mac and Federal Home Loan Banks to have firm policies in place to manage the risks posed by changing interest rates. The regulator cautioned that excessive interest rate risk can threaten liquidity, earnings, capital and solvency.


October 5, 2018 - Inside MBS & ABS

FHFA Director Watt Appears to be ‘Safe’ for Now, But Concerns Remain About a Successor

It appears – for now – that Federal Housing Finance Agency Director Mel Watt will serve out the remainder of his term, despite a recent public airing of sexual harassment allegations levied against him by senior advisor Simone Grimes.


October 4, 2018 - Inside Mortgage Finance

FHFA Director’s Harassment Allegations Center Stage at House Hearing, Accuser’s Lawyer Looks to Next Steps

With just three months left in Federal Housing Finance Agency Director Mel Watt’s term, it’s still uncertain whether he will ride out his appointment until January 6 as planned or resign because of sexual harassment allegations. Last week during a House Financial Services Committee hearing, lawmakers heard from both Watt and his accuser, Simone Grimes, about harassment that she said began in 2015. At the hearing, Watt fought back against the allegations and questioned the committee’s ...


October 4, 2018 - Inside Mortgage Finance

Private Mortgage Insurers Set to Comply with PMIERs Update, Analysts See Little Impact

Mortgage insurance companies reported they expect to be in compliance with updates to private MI eligibility requirements for doing business with Fannie Mae and Freddie Mac that were released late last week. The final version of PMIERs 2.0 will take effect on March 31, 2019, and analysts agree that other than a few tweaks, they aren’t terribly different than the original proposal. Since 2015, the U.S. Mortgage Insurers said, PMIERs have nearly doubled the amount of capital each mortgage insurer ...


October 4, 2018 - Inside Mortgage Finance

Need MSR Financing? Go See Freddie Mac – It Can Lend Up to $1 Billion and at a Deep Discount

As prospects wane in warehouse lending, some commercial banks are pondering a move into financing mortgage servicing rights but have a major concern: Freddie Mac, the government-controlled mortgage giant that’s in the midst of a $1 billion pilot program. During a recent Congressional oversight hearing, Federal Housing Finance Agency Director Mel Watt for the first time revealed the size of the MSR-financing pilot, saying it’s needed because nonbanks “do not have access to ...


Poll

With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.
Yes, but only incrementally.
We’re pondering a move into non-QM, but haven’t made up our mind.
No, definitely not. We view it has too risky.

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