If I was selling loans at the moment and I wanted to reduce secondary marketing ' leakage ', I would take special note of the changes, updates, and guidance's offered by Fannie Mae's QC department in Lender Letter 2010-03 below. THE LOAN QUALITY INITIATIVE! (aka loan repurchase world!) The only thing I might add before you read on is FNs loan purchasing systems/work flow are tedious and usually time consuming. Historically, many issues related to compliance with Fannie Mae selling policies are not detected until after loans are delinquent or through the foreclosure process. Loan repurchase requests to lenders have increased in the past three years, highlighting the need for an improved approach for working with lenders to deliver loans that meet Fannie Mae’s underwriting…(read more)
The Mortgage Bankers Association (MBA) has proposed a new tool for the Home Affordable Modification Program (HAMP) to specifically address the problems of unemployed borrowers. The Unemployed Borrower Bridge to HAMP Modification was laid out by MBA President John A. Courson in a letter to Treasury Secretary Timothy F. Geithner and proposes up to nine months of forbearance for unemployed owner-occupants before they are considered for a HAMP loan restructuring . In addition to forbearance, MBA's proposal calls for establishing a Low Cost Advancing Vehicle (LCAV) within Treasury to supply reasonable funds at a fixed rate to participating mortgage servicers to cover advances during the forbearance period. It also suggests a risk sharing mechanism that would encourage stakeholders to take the…(read more)
Freddie Mac reported today that its losses during 2009 were less than half of its huge shortfall in 2008. Net losses in 2009 totaled $21.6 billion on net interest income of $17.1 billion and total revenues of $14.3 billion. In 2008 the government sponsored enterprise lost $50.1 billion, on net interest income of $6.8 billion and total revenues of ($22.4) billion. However, after a dividend payment of $4.1 billion on its senior preferred stock held by the U.S. Treasury, the 2009 net loss attributed to stockholders was $25.7 billion or $7.89 per diluted common share. In 2008 the losses amounted to $34.60 per common diluted share. Freddie Mac also announced results of the fourth quarter of 2009 during which it lost $6.5 billion compared to ($5.4) billion in the third quarter. During the third quarter…(read more)
Freddie Mac reported today that its losses during 2009 were less than half of its huge shortfall in 2008. Net losses in 2009 totaled $21.6 billion on net interest income of $17.1 billion and total revenues of $14.3 billion. In 2008 the government sponsored enterprise lost $50.1 billion, on net interest income of $6.8 billion and total revenues of ($22.4) billion. However, after a dividend payment of $4.1 billion on its senior preferred stock held by the U.S. Treasury, the 2009 net loss attributed to stockholders was $25.7 billion or $7.89 per diluted common share. In 2008 the losses amounted to $34.60 per common diluted share. Freddie Mac also announced results of the fourth quarter of 2009 during which it lost $6.5 billion compared to ($5.4) billion in the third quarter. During the third quarter…(read more)
Freddie Mac reported today that its losses during 2009 were less than half of its huge shortfall in 2008. Net losses in 2009 totaled $21.6 billion on net interest income of $17.1 billion and total revenues of $14.3 billion. In 2008 the government sponsored enterprise lost $50.1 billion, on net interest income of $6.8 billion and total revenues of ($22.4) billion. However, after a dividend payment of $4.1 billion on its senior preferred stock held by the U.S. Treasury, the 2009 net loss attributed to stockholders was $25.7 billion or $7.89 per diluted common share. In 2008 the losses amounted to $34.60 per common diluted share. Freddie Mac also announced results of the fourth quarter of 2009 during which it lost $6.5 billion compared to ($5.4) billion in the third quarter. During the third quarter…(read more)
Global equities are mostly higher Monday including gains of more than 2% in Japan and Hong Kong. In Europe, where George Provopoulos, governor of the Bank of Greece, recently said he had “full confidence” in dealing with the deficit, stocks are more mixed but on the whole still positive. In the the US, equities are looking to a positive open. The schedule includes plenty of fresh data later in the week, but the focus this morning will be on testimony from Ben Bernanke, chairman of the Federal Reserve. 90 minutes before the opening bell, Dow futures are trading 51 points higher at 10,429 and S&P 500 futures are up 5.90 points to 1,112.10 Over the past five trading days the Dow climbed 3.9% and S&P 500 gained 4.03%. Also, NYMEX crude oil is up 43 cents to $80.24 per barrel…(read more)
The Mortgage Bankers Association released the National Delinquency Survey for Q4 2009 today. Total mortgage delinquency rates, seasonally adjusted, were down 17 basis points during the fourth quarter, but up year-over-year by 159 basis points. 9.47 percent of all mortgages on one- to four-family homes are now in some state of delinquency. While that was the headline on the press release accompanying the results of the Mortgage Bankers Association's National Delinquency Survey, the real news was the 16 basis point drop in new delinquencies recorded during the 4th quarter. In a telephone press conference accompanying release of the survey this morning, Jay Brinkmann, MBA's chief economist said that delinquencies in the 30 day plus "bucket" traditionally represent the largest…(read more)
The Mortgage Bankers Association released the National Delinquency Survey for Q4 2009 today. Total mortgage delinquency rates, seasonally adjusted, were down 17 basis points during the fourth quarter, but up year-over-year by 159 basis points. 9.47 percent of all mortgages on one- to four-family homes are now in some state of delinquency. While that was the headline on the press release accompanying the results of the Mortgage Bankers Association's National Delinquency Survey, the real news was the 16 basis point drop in new delinquencies recorded during the 4th quarter. In a telephone press conference accompanying release of the survey this morning, Jay Brinkmann, MBA's chief economist said that delinquencies in the 30 day plus "bucket" traditionally represent the largest…(read more)
The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the week ending February 17, 2010, the Federal Reserve purchased a total of $11.3 billion agency MBS. In those four trading days the Federal Reserve sold $300 million (supported the roll market) for a net total of $11.0 billion MBS purchases. The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. ( NY Fed MBS FAQs ) Since the inception…(read more)
The administration's Making Home Affordable Program (HAMP) is beginning to look a little more robust based on figures released Wednesday the U.S. Treasury Department and the Department of Housing and Urban Development (HUD), joint sponsors of the program. The newest figures indicate more borrowers are emerging from trial loan modifications and signing permanent loan modification offers. As of the end of January, a total of 116,297 permanent loan modifications had been signed, nearly double the 66,465 reported at the end of December . An additional 76,482 had been extended permanent modification offers but had not yet returned the paperwork. 830,438 borrowers are still in some stage of the required three month trial period required by the program guidelines. Since the program began last…(read more)
Friends
