Posts Tagged ‘Government Sponsored Enterprises’

Proposal would Replace Government-Sponsored Enterprises Fannie and Freddie

June 20th, 2013 Comments off

A plan to replace Fannie Mae and Freddie Mac with a Market Access Fund (MAF) has been proposed by two U. S. senators as well as by several analytic firms and think tanks. Senators Bob Corker (R-Tenn.) and Mark Warner (D-Vir.) say their reform bill would create the MAF from basis points added to mortgage-backed securities (MBS). A joint proposal by Moody Analytics, Urban Institute and Milken Institute states a six basis point MBS fee would eventually provide $5 billion in annual revenue, sufficient for a stable MAF funding source. Since it will be difficult to back affordable housing initiatives that have been the province of the GSEs, a percentage of the MBS fees would establish a National Housing Trust Fund to maintain and create sufficient inventory of adequate rental housing for extremely low-income families. In addition, as MHProNews has learned from nationalmortgagenews, the fees would fund research to make certain all sectors are being served by the new arrangement.

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Housing Expert: Modify the Mortgage Interest Deduction

April 30th, 2013 Comments off

In an interview in Forbes, Nicolas P. Retsinas, former Federal Housing Commissioner and Director Emeritus of Harvard University’s Joint Center for Housing Studies, says the housing recovery is being spurred by new household formation, which in turn has been sparked by the improving job market, and abnormally low interest rates. He says while the administration is trying to accelerate the housing recovery, the government-sponsored enterprises (Fannie Mae and Freddie Mac) which insure, securitize, and guarantee 95 percent of all mortgage loans, are narrowing the credit tunnel because they do not want to lose money and be on the front page asking for a bail-out. Noting we over-encouraged homeownership, which in part led to the housing downturn, he says the mortgage interest deduction (MID) has become a sacred cow, but perhaps it is time to allow first-time homebuyers and those below a certain income only to use it, as it deprives the government of $100 billion annually. MHProNews has learned in a book Retsinas wrote, he says nearly all cultures have in their psyche the notion of homeownership, including two-thirds of American families. He says when the current demand for rentals subsides, the equilibrium will shift and homeownership will likely rise.

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GSEs Winding Down? Says Who?

April 5th, 2013 Comments off

In addition to guaranteeing the majority of new residential mortgages across the country, HousingWire informs MHProNews Fannie Mae and Freddie Mac, the GSEs (government-sponsored enterprises), also guarantee half of the outstanding residential mortgage debt, with the private market picking up the other half. While the Congressional Budget Office (CBO) projects that Fannie and Freddie will wind down, the return to profitability for both will likely extend their strength and longevity in the mortgage market. As the result of the rebirth of the housing market, Fannie Mae posted a gain of $17.2 billion, its largest ever; and Freddie Mac earned net income of $11 billion.

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Lingua Mortgage Standardized for GSEs

July 24th, 2012 Comments off

In an attempt for the government sponsored enterprises (GSEs) to standardize data on appraisals and mortgages, Fannie Mae and Freddie Mac have adopted the Uniform Loan Delivery Dataset (ULDD), part of the larger Uniform Mortgage Data Program, whereby lenders are using a common language in reference to the loans and appraisals that go to the GSEs, according to HousingWire. Freddie Mac’s Sam Oliver says, “This is the culmination of several years of hard work, investment, and planning across the industry that we could not have accomplished without the collaboration and partnership of our customers, vendors, and appraisers.” MHProNews has learned the next step will be expanded loan level disclosure for mortgage-backed securities.

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MHARR Hammers Away

June 19th, 2012 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) reports that despite the 2008 Congressional “duty to serve” (DTS) directive to the government-sponsored enterprises (GSEs) to establish a secondary market for manufactured housing, including chattel loans, the proposed implementation rule published by the Federal Housing Finance Agency (FHFA) two years ago remains in limbo. Since it would exclude chattel financing anyhow, MHARR continues to press the regulators for the GSEs to include chattel financing, and thereby carry out the intent of Congress. At a meeting with MH chief executives and FHFA May 24, 2012, when FHFA cited outdated loan performance data, MHARR pointed out the MH loan delinquency as of 12-2011 was 3.76% as opposed to 6.01% for the national mortgage delinquency rate. As MHProNews has learned MHARR continues to insist MH is affordable housing and should be treated as such by the various federal governmental agencies and regulators. For the full report, click here.

(Photo credit: Champion Homes)

Guidelines Provide Value of MH

March 27th, 2012 3 comments

In a press release, MarketWatch says NADAguides Manufactured Housing CONNECT provides instant valuation of homes from 1963-2012, in a web-based application, with adjustments for geographic location, community and loan valuation guidelines, condition, accessories, and repairs needed. The guide helps lenders, retailers and community owners evaluate MH. The release says NADAguides are an approved cost source by the government GSEs (government sponsored enterprises), and the value report data can be tied to a specific customer, site, loan, or inventory.

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Credit Unions Testify at Senate Banking Hearing

March 6th, 2012 Comments off

The Senate Banking Committee was told by the National Association of Federal Credit Unions (NAFCU) of their opposition to mortgage reform that would eliminate the federal guarantee on mortgages through Fannie Mae and Freddie Mac and other GSEs (government-sponsored enterprises). The plan originally endorsed by the Obama administration would promote privitization of the secondary mortgage market, and the NAFCU fears the big banks who already compete with the smaller lenders for loan origination may dominate the secondary sector as well. The plan would also increase the fees Fannie and Freddie charge for mortgage guarantees, as well as eliminate the two lenders from business. NationalMortgageNews tells while the proposal does have strong Republican support, the White House and the Democrats are stepping back because of the impact resulting from a too-quick shutdown of the two GSEs, especially since they hold 90 percent of single-family mortgages.

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Mixed signals on Federal role, Fannie and Freddie Future uncertain

August 17th, 2011 Comments off

Deputy_Treasury_Secretary_Neal_Wolin_WSJ.pngTheHill reports a push back from the Treasury Department on an earlier Washington Post report that alleged that President Obama favored a plan retaining a major federal role in the housing finance market. Deputy Treasury Secretary Neal Wolin stated In each of the three options we outlined in our report to Congress, the governments footprint in the housing finance market will shrink substantially.” Wolin added “That’s why, in each of the options, any government support for housing finance will be targeted and limited. This will help ensure that taxpayers are protected and the private sector bears the burden for losses.” Wolin acknowledged that Fannie Mae and Freddie Mac, will play a critical role in supporting the still-fragile housing market.” Wolin claims the administration ultimately wants the government-sponsored enterprises (GSEs) wound down.

(Photo credit: Wall Street Journal)