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Posts Tagged ‘Government Sponsored Enterprises’

FHFA “May” Open the GSE Door to Purchase MH Chattel Loans

January 9th, 2016 Comments off

mhi_logoThe Manufactured Housing Institute informs MHProNews the Federal Housing Finance Agency (FHFA) is seeking comments on its published notice regarding a secondary market for manufactured home loans. While the proposal does not require Fannie Mae and Freddie Mac (the government-sponsored enterprises) to purchase chattel loans, only that they “may” consider doing so, it is a far cry from 2010 when the FHFA’s duty to serve (DTS) proposal did not include chattel loans.

MHI points out that while it is disappointed the proposed rule falls short of providing DTS credit for chattel loans, the agency is opening the door by one, asking for comment on whether DTS credit should be given; and two, proposing a pilot program for chattel loans.

MHI Chairman Tim Williams expressed optimism: I am pleased that FHFA is encouraging Fannie Mae and Freddie Mac to open a wider range of opportunities for aspiring manufactured homeowners. The bottom line: done right, this could make becoming a manufactured home owner more affordable. We are pleased that our efforts have led to FHFA’s invitation to submit comments on whether to give credit for chattel loans, which are a vital form of financing for manufactured homeownership.”

He adds that MHI’s comments will push hard for including chattel loans, and that they can be done in a way that best benefits homebuyers. MHI “will work with the FHFA to maximize opportunities for manufactured home buyers.”

Moreover, MHI decries other groups that attack and vilify the FHFA, especially with unfounded allegations of breaking the law and secret meetings, saying that is counterproductive when lobbying a federal agency.

The right way to influence federal policy is with constructive engagement, hard work and providing expertise – the approach taken by MHI.” ##

(Image credit: Manufactured Housing Institute)

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

Freddie Mac Drowns in Red; CEO Layton says Lenders need to Lower Down Payment

November 4th, 2015 Comments off

donald_layton__ceo_freddie_mac__housingwire__creditOn the news of Freddie Mac reporting a net loss of $475 million for the third quarter of 2015, significantly down from the net income of $4.2 billion for the same quarter 2014—the first time in four years– MHProNews has learned from housingwire that Freddie Mac CEO Donald Layton is suggesting lenders lower their down payment when writing mortgages. He says that would help the GSE increase access to credit for possible homeowners.

Referring to the loss, Layton, calling it “accounting noise,” said the real economics going on is that lenders are not fully exploiting the three percent down payment mortgages that Freddie will now bundle and securitize. He said mortgage lenders are unduly afraid of representation and warrants claims, but in fact, that activity has declined, he noted.

He did describe the loss thusly: “This $0.5 billion loss was caused mainly by the accounting associated with our use of derivatives, whereby the derivatives are marked to market but many of the assets and liabilities being hedged are not. He added, We’re sampling performing loans earlier to test for defect in manufacturing. All this is designed to have lenders feel more comfortable.

Freddie’s net worth is $1.3 billion, and it has repaid $96.5 billion to taxpayers and received $71.3 billion from the Treasury.

Federal Housing Finance Agency Director Mel Watt, noting the decrease was not a decline in credit quality or an increase in credit losses, said as the GSEs transfer credit risk away from the taxpayer to the private sector, their revenues will of necessity decline.

A U. S. Treasury official who says the loss is not indicative of a weakness, stated, “The prospect of any material losses by the GSEs is another reminder that comprehensive housing finance reform is necessary. Taxpayers remain on the hook for losses incurred by the GSEs, whether through the capital buffer or the ongoing, $258 billion backstop under the PSPAs.

Suggesting this could be the first shot in a return to the housing crisis, Rep. Ed Royce (R-CA) has introduced legislation to limit the pay of GSE CEOs. He said, “Losses like this combined with multimillion dollar CEO salaries at the GSEs are the warning shots of a return to the pre-crisis model of private gains and public losses that wrecked the economy. We can’t simply put the blinders on and say that Fannie and Freddie are just like other companies when taxpayers are on the hook if they go in the red.

His bill would limit compensation to $600,000 instead of the $3 million proffered by the FHFA earlier this year.

Meanwhile, Freddie’s comprehensive loss for Q3 2015 was $501 million, as compared to comprehensive income of $3.9 billion for Q2 2015. Freddie’s single-family rental business’ purchase climbed to $90 billion, a 50 percent increase compared to the same period 2014. ##

(Photo credit: housingwire–Freddie Mac CEO Donald Layton)

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

Secondary Market for Manufactured Home Loans Coming from FHFA

October 2nd, 2015 Comments off

federal_housing_finance_agency__logoAccording to nationalmortgagenews, the Federal Housing Finance Market (FHFA) will issue a final rule within the next 12 months requiring Fannie Mae and Freddie Mac to better serve the manufactured housing market and rural markets, and increase the preservation of affordable housing under the “duty-to-serve” mandate.

The rule will therefore provide a secondary market for manufactured housing loans, lower financing costs and providing better protection for consumers, long sought goals of the the manufactured housing industry.

The agency also intends to update its the GSEs credit scoring models. FHFA will “continue to assess the feasibility of leveraging alternative credit scores for underwriting, disclosure and pricing purposes, including operational and system implications.

FICO has made significant changes since the FICO 4 credit scoring model was introduced in 2004, as MHProNews has learned. Different groups have suggested more current credit scoring models should be introduced, but FHFA Director Mel Watt said updating the FICO of developing an alternative is a complicated process, and there was no immediate indication that will be done within this fiscal year, which began Oct. 1.

The agency also intends to work on different remedies for dealing with lender disputes with Fannie and Freddie. ##

(Image credit: Federal Housing Finance Agency)

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

Sunday Morning Recap-Manufactured Housing Industry News Aug. 9-Aug. 16, 2015

August 16th, 2015 Comments off

mhpronews_sunday_morningWhat’s New in public focused Manufactured HomeLivingNews.com

Nubble Lighthouse and Sohier Park. York, Maine – US Destination

What’s New in Manufactured Housing Industry Professional News

GSEs set to offer secondary market for manufactured home loans. Two MHCs change hands, new MHC planned in Canada. CFPB not protecting consumers OR employees. CA city tries to protect MHCs from repurposing. Modulars rising in Germany, Nepal, Kansas. TX lenders lose FHA lender status for MH. Reputation marketing for MH available. MHC residents defend owner. MHARR detects jaundiced eye in HUD proposal. And much, much more news and views to accompany your morning coffee.

Saturday, Aug. 15

Consumer Financial Protection Bureau is Rife with Discrimination

Friday, Aug. 14

246 Site Manufactured Home Community Sold in Michigan

Bowersox Takes Vice President Position with Manufactured Housing Institute

MHCV Outperforms Dow. LPX Gains 3.55%

Shigeru Ban develops Modular Shelter for Quake Survivors in Nepal

Kingsley Management Corp. Acquires Florida Manufactured Home Community

Modular Homes will Result from Land Bank Transfer

Thursday, Aug. 13

Secondary Market for Manufactured Home Loans Directive Due Soon

San Jose wants a Six Month Moratorium on Re-purposing of Manufactured Home Communities

Council Strengthens Language Regarding Relocating Residents

Patrick Gains the Most of MH Stocks; MHCV Slips

Land Bank Authority Funds Modular Housing Project

Manufactured Home Community Founder Supports Non-profit in New Jersey

Wednesday, Aug. 12

Citizens Paring Down Policies of Manufactured Home Owners

California Takes Prize for Most Expensive Homes

Fleetwood Poised to take Advantage of Opportunities Down Under

China Devaluation Leaves Stocks Flat; Deer Valley Falls Following Prior Big Gain

European Modular Housing Builder Overwhelmed by Demand

55+ Housing Market Index Remains Steady

Tuesday, Aug. 11

MHARR Questions HUD’s Proposed New SAA Funding

Lenders Fined, Lose FHA Approval Status for Manufactured Home Lending Fraud

Deer Valley Homes Skyrockets +85.71%; Dow Loses most of Yesterday’s Gain

Shelters Developed for Military may be Used for Disaster Scenarios

Modular Home Construction can Realize Cost Savings

Drew goes Fishing, Finds Furniture for Fresh Water Float

Monday, Aug. 10

Grenade Marketing Offers Reputation Marketing for Manufactured Home Industry Pros

Dow Posts Strong Gain, MHCV Slips, LPX Gains 4.60%

Passages: Norman Schweiss

Manufactured Home Community Residents say City has it Wrong

Canadian City Planning new Manufactured Home Community

Sunday Morning Recap-Manufactured Housing Industry News Aug. 2-Aug. 9, 2015  ##

 

(Photo credit: MHProNews)

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

Demand Continues for Manufactured Homes in the Twin Cities

July 6th, 2015 Comments off

Minnesota_Hilltop_MN_mhc__Elizabeth_Flores__startribune__creditWhile the startribune informs MHProNews that manufactured homes (MH) were the original affordable housing in rural and suburban Minnesota, in the twin cities area of Minneapolis-St. Paul the number of occupied MH has fallen 12 percent since 2001 to 13,660 homes.

Nationally, the number of manufactured homes shipped dropped drastically in the early part of the new century, as loose credit standards in part from government-sponsored enterprises (GSEs) took away a portion of the MH market share and ultimately led to the housing bubble and Great Recession. Production rose to 49,000 in 2010, and last year it had increased to 64,000, and is on track to surpass that number this year.

Fridley Mayor Scott Lund, who sells MH and owns a manufactured home community (MHC), says the demand for affordable housing remains high, “But the tightening of the financial market has caused less people to get loans to purchase manufactured homes. Many dealers simply closed their doors. There are a lot of manufactured-home communities in the metro, and they are not full anymore.” He says the number of banks he deals with that offer MH loans has dropped from 22 to four.

Mark Brunner, president of the Manufactured and Modular Home Association of Minnesota (MMHA) says the Dodd-Frank financial reform measure signed into law by President Obama in 2010 created a “huge impediment” to people’s ability to purchase MH. Noting, “There is clear demand for affordable housing and workforce housing,” Brunner says the U. S. House of Representatives did pass reform legislation last month, but as MHProNews understands it must pass the Senate and the president’s signature.

Just north of Minneapolis is Hilltop, MN, pop. 744, comprised almost totally of manufactured homes. Linda Johnson and her husband live in one of the four communities in Hilltop, one that his family has owned since 1948. She says production may have fallen but demand has not. We are always full,” she said. “We have people coming to the door almost daily asking about mobile homes for sale. She is a Hilltop City Council member and has helped residents secure state funding to replace aging homes with new ones.

Kate Thunstrom, Anoka County’s Community Development Manager, says $220,000 of its $729,000 federal community block grant funding has been used to replace aging manufactured homes. Nearly 25 percent of the Twin Cities’ MH are in this county. The funding helps residents remove old homes and provides down payment assistance. “Some of the units being taken out are beyond distressed,” Thunstrom said. “They are not safe or habitable. It doesn’t take a lot of grant funds to make a big impact.

In October, the non-profit Corporation for Enterprise Development (CFED), nominally a sponsor of MH, will host a conference in the Twin cities abut the role of manufactured homes in the affordable housing movement. ##

(Photo credit: startribune/Elizabeth Flores–Manufactured home community in Hilltop, Minnesota)

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

Castro video interview touts FHA improvements, plus calls for GSE reform, pointing to bill promoted by MHARR

November 18th, 2014 Comments off

julian-castro-housing-urban-development-hud-secretary-bloombergtv-businessweek=credits-posted-daily-business-news-mhpronews-com-Secretary of Housing and Urban Development (HUD) Julian Castro said in an interview with Bloomberg TV  that for many responsible Americans it is “too difficult” to get a home loan today. Castro reminded viewers with a smile that Ben Bernanke couldn’t get a home loan refi done, due to too strict lending guidelines.

The HUD Secretary was pleased to say that the FHA Title II mortgage loan program was back in the black and on a good track.

Castro also said that reform of the Government Sponsored Enterprises (GSEs) remains a top priority for the Obama Administration’s last two years.

The reforms should be part of an overhaul of the nation’s housing finance system, Castro said. 

Castro pointed out that their is bi-partisan support for legislation (S. 1217) introduced by Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) which would reform the national housing finance market. It would eventually eliminate mortgage giants Fannie Mae and Freddie Mac.

Castro said, “This could be, I believe, a good victory either in the lame-duck session or, more realistically, perhaps in the next term of Congress where there is bipartisan support for housing finance reform, for doing away with Fannie and Freddie as we’ve known them, creating a backstop.”

While both national associations have favored reforms of the GSEs in a way that could be good for the industry’s home sellers and consumers, the Manufactured Housing Association for Regulatory Reform (MHARR) rapidly issued a release praising the Castro/Administration initiative.

MHARR’s released called it “good news for the manufactured housing industry, insofar as S. 1217 incorporates specific model manufactured housing (and chattel financing) equal access and non-discrimination language developed and advanced by MHARR, that was ultimately included in the bi-partisan bill on March 16, 2014 and approved by the Senate Banking Committee on May 15, 2014.”

MHARR elaborated, saying, “…regardless of what happens to S. 1217, the MHARR model equal access and non-discrimination language provides a basic template that the industry can and must include in any housing or housing finance legislation introduced in Congress going forward.”

The full MHARR release is here. MHProNews will continue to track developments of this story from all angles. ##

(Castro photo credit: BloombergTV/BusinessWeek)

Incoming FHFA Director Mel Watt to Delay Mortgage Fees

December 27th, 2013 Comments off

Acting Federal Housing Finance Administration (FHFA) Director Edward DeMarco announced the day before incoming FHFA Director Mel Watt was approved by the Senate that he intended to raise certain GSE (government-sponsored enterprise) fees in early 2014. He says this will entice more private lenders back into the mortgage market and reduce the government’s role. Some housing groups complain that the fees are already too high, and making them higher would put home buying out of reach for many people. Others are not sure the strategy would actually work. Watt, however, may be more interested in making credit available than in shrinking the GSEs, according to nationalmortgagenews.com. As MHProNews has learned, he will postpone the fee hikes until he thoroughly reviews the operation. FBR Capital Markets analysts Edward Mills states, “We view this action as confirmation that incoming director Watt will place the cost and availability of credit at the center of his decision-making, which, if successful, will allow for the expansion of mortgage credit availability.”

(Photo credit: Jonathan Ernst/YAHOO and Reuters–Fannie Mae headquarters)

Will Raising Mortgage Fees Bring Back Private Capital?

December 24th, 2013 Comments off

Industry groups are questioning the Federal Housing Finance Administration’s (FHFA) raising of fees as a means to encourage private capital back into the mortgage market. The National Association of Realtors (NAR) president Steve Brown says homebuyers are being charged excessive fees “due to questionable agency goals.” The FHFA intends to raise loan guarantee fees by ten basis points this spring, and increase the loan-level adjustment fees as well. Brown states the higher fees will just hike the cost of purchasing a home and send more mortgage loans to the Federal Housing Administration (FHA) without bringing more private sector involvement into the market. According to nationalmortgagenews, the Community Mortgage Lenders of America (CMLA) says the GSEs (government-sponsored enterprises) are already charging enough to cover their risk, and raising fees will penalize first-time homebuyers. CMLA Executive Director Scott Olson tells MHProNews the FHFA’s goal has been to shrink the GSEs role, but the agency needs to make sure private capital will sufficiently fill the role of the GSEs.

(Image credit: hansfax.com)

Support for Governmental Backstop for Mortgage Financing Remains

September 18th, 2013 Comments off

A “future-of-housing” forum sponsored by the National Association of Home Builders (NAHB) in Washington, D. C., with housing industry experts and Senators Bob Corker (R-TN), Jon Tester (D-MT) and Johnny Isakson (R-GA) indicated most participants agree the private sector should play a greater role in mortgage financing, but with some level of government support to ensure stability and liquidity. Peter Wallison of the American Enterprise Institute says lowering the conforming limits of the government sponsored enterprises (GSEs) will make a path for the private sector to take that business. “If you simply made those changes and authorized the withdrawal of the GSEs, you would find we would gradually move to a completely private system, which is where I think we should be going,” he states. Others say during a tough time for the housing industry private credit would simply disappear, and that the Federal Housing Authority (FHA) saved the day during the recent crisis. Sens. Corker and Tester are among ten bipartisan sponsors of the Housing Finance Reform and Taxpayer Protection Act (S. 1217), which provides a federal backstop to mortgage lending. Isakson says every provision in the Tax Code must be thoroughly examined to determine if it is viable in the long term. Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard University says household formation is particularly slow, as many over 30 children remain with their parents due to economic necessity. NAHB Chief Economist David Crowe says the housing market is about half-way back, as credit remains tight and buildable lots are scarce. On the topic of tax reform, several housing experts agree the mortgage interest deduction plays an important role in shaping housing demand. NAHB Economist Robert Dietz says, “The nonpartisan Tax Foundation found that if we repealed the mortgage interest deduction and lowered marginal tax rates then GDP would decline by $100 billion annually,” plus it would cause home values to decline. AS MHProNews learned, he added, “Considering it only takes a 6 percent drop in home values to wipe out $1 trillion in household wealth, the economic consequences could be significant.”

(Image credit: firstbanktrust.com)

Mortgage Finance Reform Tops Congressional Agenda

July 8th, 2013 Comments off

House Republicans, led by Rep. Jeb Hensarling of Tex., Chairman of the House Financial Services Committee, are getting set to introduce mortgage finance reform legislation that will totally eliminate government sponsored enterprises (GSEs) and replace them with a private system. Knowing all the features are not likely to pass, the goal of the representatives who are assisting in drafting the measure is to mark a point from which to negotiate. The bipartisan bill from the Senate, introduced by Bob Corker (R-Tenn.) and Mark Warner (D-Vir.), while cutting out Fannie Mae and Freddie Mac, would still provide a definite role for the government in the mortgage market, and has already received some industry support. If Hensarling is too unyielding, he’s likely to lose support of the GOP representatives who have ties to the housing industry, according to what nationalmortgagenews tells MHProNews. If too moderate, he may lose the more conservative members who are dead set on eliminating the GSEs. Says Brandon Barford, a vice president at ACG Analytics, “Negotiating with the Senate and the White House and other stakeholders, I think he’s going to have difficulty if his bill is dramatically different than Corker-Warner, if there’s little to no government role. I also question whether he (Hensarling) has enough votes to get it out of committee. He’s not going to get any Democrats, and he has a very slim margin to lose Republicans.”

(Image credit: Facebook)