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Posts Tagged ‘demarco’

Former FHFA Head DeMarco Slams Congress and Obama Administration

March 18th, 2015 Comments off

question_mark_houses__fotosearchEdward DeMarco, former Federal Housing Finance Agency (FHFA) chief, says Congress’ failure to pass government-sponsored enterprise (GSE) reform and the current mortgage finance system promotes housing debt instead of home ownership. As nationalmortgagenews tells MHProNews, DeMarco says the Obama administration is trying to boost credit availability, a move that echoes the run-up to the financial crisis.

Cutting the Federal Housing Administration’s mortgage insurance premiums and encouraging the FHFA to lower down-payment loans that would be purchased by Fannie Mae and Freddie Mac means two federal programs are competing with each other instead of bringing more private capital into the mortgage finance system.

While the acting director at FHFA, DeMarco was criticized for trying to reduce Fannie and Freddie’s presence in the mortgage market, praised by Republicans, but Democrats accused him of cutting credit availability. He says its past due time for taxpayers to get out from under the $4.5 trillion in mortgage debt, essentially backing 75 percent of mortgages.

Fannie and Freddie have about $240 billion in non-performing loans on the books and DeMarco supports the sale of them as well as the GSE’s recent credit risk transfers.

Meanwhile, he says, “Billions of dollars sit on the sideline…because the rules are uncertain, the government controls the field and the future legal structure is unknown.” ##

(Image credit: fotosearch–Question mark housing)

matthew-silver-daily-business-news-mhpronews-com   Article submitted by Matthew J. Silver to Daily Business News-MHProNews)

Hearings Held on Housing Finance Reform

March 29th, 2013 Comments off

The Manufactured Housing Institute (MHI) informs MHProNews hearings were held March 19 by both the House and the Senate on housing finance reform. Texas Chairman of the House Financial Services Committee Jeb Hensarling stated he wants to abolish Freddie Mae and Freddie Mac and privatize the secondary mortgage market. Acting director of the Federal Housing Finance Agency (FHFA) Edward DeMarco testified at the House hearing the housing recovery is gaining strength, and noted the joint securitization platform that will be used by Fannie and Freddie. South Dakota Chairman of the Senate Banking Committee Tim Johnson expressed concern that privatizing the mortgage market will put homeownership out of the reach of many Americans. Two of the three witnesses at the Senate hearing say the federal government needs to provide a backstop for the GSE market in the future. MHI will continue to monitor Congressional activities to determine their impact on the manufactured and modular housing industry.

(Photo credit: Wikipedia–U. S. Capitol floor)

More Underwater Borrowers Grasp Lifeline

November 30th, 2012 Comments off

The government’s Home Affordable Refinancing Program (HARP) saw a 75% growth over all of last year in the first nine months of 2012, amounting to 700,000 loans, according to nationalmortgagenews. Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA) suggested the numbers might hit one million by year’s end. Backed by Fannie Mae and Freddie Mac, the loans sparked after rules were changed that encouraged lender involvement, financing more than 1.7 million mortgages since the program began in 2009. Geared to help underwater borrowers, over 40% of the HARP refinances through the third quarter of this year went to those borrowers. As MHProNews has learned, mortgages that exceeded the value of the underlying homes by at least 25% accounted for a quarter of the 90,000 HARP loans in Sept.

(Image credit: hansafx)

Personnel Changes Inside the Beltway

November 14th, 2012 Comments off

HousingWire reports Raj Date, deputy director at the Consumer Financial Protection Bureau (CFPB) will be leaving his post next year. As industry expert and consumer advocate, Date was the acting director from the inception of the agency in July 2011 until Richard Cordray took over the position. Mortgage Bankers Association (MBA) CEO David Stevens says Date was beneficial to the industry and the CFPB, and hopes Date is replaced with someone of equal caliber and ability. Meanwhile, leadership changes in Congress could have a large impact on the housing industry. The Senate Banking Committee has 12 Democrats and 10 Republicans with two Democrat spots open. Will Elizabeth Warren, the engineer of the CFPB, sit on this committee? Stevens points out Rep. Jeb Hensarling (R-TX) could become Chairman of the powerful House Financial Services Committee, and Rep. Maxine Waters (D.Calif.) may become the new ranking member of that committee. As MHProNews has learned, Stevens does not expect much in the way of regulatory alterations anytime soon, but is concerned about a possible new treasury secretary and the replacement for FHFA acting director Ed DeMarco.

(Photo credit: HousingWire)

Regulator May Act Against Eminent Domain Plan

August 14th, 2012 Comments off

fhfa-logo-headerReuters tells MHProNews that the Federal Housing Finance Agency (FHFA) raised concerns about a private investor group’s controversial aim to seize and restructure poor-performing mortgages. The federal housing regulator of the GSEs said it is concerned about the program’s constitutionality. “FHFA has significant concerns with programs that could undermine and have a chilling effect on the extension of credit to borrowers seeking to become homeowners and on investors that support the housing market,” the agency said in a statement. Edward DeMarco, the acting director of the FHFA, has objected to principal reductions on mortgages. DeMarco told reporters “the anticipated benefits do not outweigh the costs and risks.” Concerns about costs to taxpayers was also expressed. Mortgage Resolution Partners, a San Francisco-based group backed by some prominent West Coast financiers, is promoting the concept. Eminent domain traditionally has been used by local governments to condemn buildings and properties for public works projects. A related column in Industry Voices can be found here. ##

(Graphic Credit: FHFA Logo)