Free Republic 3rd Quarter Fundraising Target: $85,000 Receipts & Pledges to-date: $73,430
86%  
Woo hoo!! And and we're now over 86%!! Less than $12k to go!! Let's git 'er done!! Thank you all very much!!

Keyword: fannie

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  • Massachusetts Sues Fannie and Freddie Over Foreclosure

    06/08/2014 1:21:46 PM PDT · by Lorianne · 3 replies
    New York Times ^ | 02 June 2014 | Shaila Dewan
    Martha Coakley, the attorney general of Massachusetts, filed suit on Monday against Fannie Mae and Freddie Mac in an effort to force the federally owned mortgage finance giants to comply with a state antiforeclosure law passed in 2012. The law seeks to ease the way for so-called buyback programs, which are aimed at reducing the debt of the homeowner while saving the lender the cost of foreclosure and eviction. Fannie and Freddie have refused to allow homes with mortgages they back to enter buyback programs, the suit contends, even though it costs them money not to. “For too long, Fannie...
  • U of M study sees signs of mortgage redlining in Twin Cities

    04/11/2014 7:19:24 AM PDT · by TurboZamboni · 24 replies
    MPLS Star & SIckle ^ | 4-9-14 | JENNIFER BJORHUS
    Minority residents in the Twin Cities are much more likely than white people of similar incomes to be rejected for a mortgage, whether they’re buying a home or refinancing. If the home sits in a diverse or mainly nonwhite neighborhood, the application is also more likely to get the boot. Those are the findings of a new study from the University of Minnesota Law School suggesting that mortgage redlining remains alive and well in the Twin Cities. The report suggests that while banks may have justifiably tightened up credit standards, they have swung so far that they are cutting off...
  • The Financial Crisis: Why Have No High-Level Executives Been Prosecuted?

    01/09/2014 8:35:15 PM PST · by Brad from Tennessee · 61 replies
    New York Review of Books ^ | January 9, 2013 | By Jed S. Rakoff
    Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation: without jobs, without resources, without hope. Who was to blame? Was it simply a result of negligence, of the kind of inordinate risk-taking commonly called a “bubble,” of an imprudent but innocent failure to maintain adequate reserves for a rainy day? Or was it the result, at least in part, of fraudulent practices, of dubious mortgages portrayed as sound risks and packaged into ever more esoteric financial instruments,...
  • Transformation: Freddie Mac Does Another Risk-sharing Deal, Citi Sells Servicing Rights

    10/25/2013 7:30:21 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 10/25/2013 | Anthony B. Sanders
    The mortgage market is undergoing a transformation. Fannie Mae and Freddie Mac are doing more credit risk-sharing deals (a sign of things to come) while Citi decides to sells its mortgage servicing portfolio. Oct. 25 (Bloomberg) By Jody Shenn — Freddie Mac “expects to complete another” sale of risk-sharing securities “shortly,” FHFA acting director Ed DeMarco said in speech yesterday afternoon. • NOTE: Freddie spokeswoman said last month it hopes to complete another deal this year; Fannie Mae execs said this month no more deals in 2013, working on one for early next year • FHFA plans for “scope and...
  • Levitan's Crony Capitalism Plea to Senate On Housing Reform (Wants Public-Private Hybrid Model)

    10/02/2013 11:01:44 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/02/2013 | Anthony B. Sanders
    Georgetown law professor, Adam Levitan, testified in the US Senate yesterday on “Fundamentals of a Functioning Private Label Mortgage Backed Securities Market.” 172476171-Levitin-Senate-Banking-Testimony-10-1-13 Levitan was a student of Consumer Financial Protection Bureau architect and former Harvard law school professor Elizabeth Warren (now a US Senator). Levitan is a believer in BIG government and everything is the private sector’s fault. “Relying on PLS (Private Label Securities) to serve as the main financing source for the housing market would be a high-risk gamble with the US economy. Instead, a hybrid public-private system with first-loss private capital backstopped by an explicit and priced...
  • Are We Nearing the End of Fannie and Freddie? Both Parties seem to be on the same page

    09/03/2013 7:43:01 AM PDT · by SeekAndFind · 4 replies
    Pajamas Media ^ | 09/02/2013 | RODRIGO SERMEŃO
    WASHINGTON – Talk of housing-finance market reform seems close to action as various proposals promise to move forward the national debate about the future of Fannie Mae and Freddie Mac.Four decades ago, Congress set up Fannie Mae and Freddie Mac as government-sponsored enterprises (GSEs) – privately owned financial institutions established by the government to fulfill a public mission. The two GSEs were created to provide a stable source of funding for residential mortgages, including loans on housing for low- and middle-income families. Fannie and Freddie fulfill that mission through their operations in the secondary mortgage market. The two companies...
  • Thoughts on racism and race in America

    08/27/2013 11:07:38 PM PDT · by servo1969 · 5 replies
    Bookwormroom.com ^ | 8-27-2013 | Bookworm
    You've already heard, I'm sure, about Delbert Belton, the 88-year-old World War II veteran who was beaten to death by two black teenagers. The police are assuring everyone that there's no need to get worried, because this wasn't a race crime. Instead, it was Delbert's own fault. According to the police, when the boys tried to rob Delbert, he had the temerity to fight back, leaving them with no other option than to beat an old man to death.A friend of mine noted that, using this reasoning, if one assumes solely for the sake of argument that the race-hustlers are...
  • Fannie Mae and Freddie Mac Hide Billions In Losses - Time To End Fannie and Freddie!

    08/25/2013 5:51:30 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 08/25/2013 | Anthony B. Sanders
    The Inspector General for FHFA released a report that claims Fannie Mae and Freddie Mac are masking billions of dollars in losses. The report, written by the inspector general for the Federal Housing Finance Agency and reviewed by Reuters, said the FHFA’s timeframe for mortgage finance companies Fannie and Freddie to have up to two years to recognize the cost of mortgages delinquent at least 180 days was “inordinately long.“ The change in the accounting treatment of these delinquent loans potentially could require Fannie and Freddie, which have rebounded to enormous profitability in the past two years as the housing...
  • The American Dream Turned Nightmare: Fannie Mae and Freddie Mac Cost $42.5K For Each Household

    08/17/2013 11:52:59 AM PDT · by whitedog57 · 14 replies
    Confounded Interest ^ | 08/17/2013 | Anthony B. Sanders
    The liabilities for mortgage giants Fannie Mae and Freddie Mac amount to $4.9 trillion, according to economist James Hamilton<. That equals $42,494.15 per household. This is especially troubling since the US homeownership rate is 65% and 60% of home sales are made with all-cash. So, renters really end up subsidizing homeownership AND Fannie Mae and Freddie Mac. While this is outrageous, the other costs of government spending and promises are even more outrageous. We know that the employment situation in the US is terrible with 70% of jobs created since January 2009 being low-paying, part-time jobs. And median household income...
  • Dueling Housing Reform Bills: The House’s PATH Bill Versus The Senate’s Corker-Warner Bill

    08/14/2013 11:29:06 AM PDT · by whitedog57
    Confounded Interest ^ | 08/14/2013 | Anthony B. Sanders
    House Financial Services Committee Chairman Jeb Hensarling spoke yesterday in Texas on housing reform. Hensarling pointed out that the Protecting American Taxpayers and Homeowners (PATH) Act specifically: * Ends the costly Fannie and Freddie bailout; * Protects and restores the FHA by defining its mission; * Increases mortgage competition, enhances transparency, and maximizes consumer choice; and * Breaks down barriers for private investment capital. Here is a markup of the PATH bill. The PATH bill is superior to the Senate’s Corker-Warner bill that proposes winding down Fannie Mae and Freddie Mac, but creates yet another government insurance corporate (The Federal...
  • Obama Calls for Mortgage Overhaul, Closing Fannie and Freddie

    08/06/2013 4:53:54 PM PDT · by shove_it · 53 replies
    MoneyNews ^ | 6 Aug 2013
    Buoyed by an improving housing market, President Barack Obama on Tuesday proposed a broad overhaul of the nation's mortgage finance system, including winding down government-backed Fannie Mae and Freddie Mac. He declared that taxpayers should never again be left "holding the bag" for the mortgage giants' bad bets. Obama outlined his proposals in Phoenix, the once foreclosure-riddled city at the epicenter of the nation's housing crisis. The housing market in Phoenix, as well as in many other parts of the country, has rebounded robustly, with prices in the southwestern city up 66 percent from the low point in 2011...
  • Votes for Mortgages: If you liked the subprime crisis, you'll love what the feds are cooking up now

    08/12/2013 7:50:58 AM PDT · by SeekAndFind · 15 replies
    American Thinker ^ | 08/12/2013 | Joe Dantone
    Fannie and Freddie have been in operation for decades without problems until recently. Fannie began in 1938 as a quasi-governmental agency making affordable homes available to people by making the financing easier and funds more readily available by establishing a secondary market for mortgages. Previously banks had held onto their mortgages in a system called portfolio mortgages and were made mostly to their own account holders. With the homes as collateral, the banks then lent out that same money again to other local borrowers. If you remember the scene from It's a Wonderful Life when there is a run on...
  • Housing Finance Reform In Context (Homeownership Rates 47.80% In 1930, 65% Today)

    08/07/2013 3:30:57 PM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 08/07/2013 | Anthony B. Sanders
    After President Obama’s rousing speech on housing this week in Phoenix, I thought a review of homeownership would be in order. Homeowneship has been dropping since 2004 after hitting a high of just over 69%. Back in 1999, Fannie Mae CEO James A. Johnson said that the homeownership rate would reach 70& by 2010. The rate stands at 65%. nhown60s Starting with President Roosevelt in 1930s, the Federal government began creating institutions to support homeownership. 1932: Emergency Relief and Construction Act of 1932, creating the Reconstruction Finance Corporation (RFC) 1932: Federal Home Loan Bank Act (the Bank Act) 1933: Home...
  • Obama says it’s time to ‘turn the page’ on Fannie and Freddie

    07/24/2013 12:38:21 PM PDT · by illiac · 30 replies
    MarketWatch ^ | 7/24/13 | MarketWatch
    President Barack Obama on Wednesday, in his speech on the U.S. economy, spelled out the beginning of the end for federally controlled mortgage buyers Fannie Mae and Freddie Mac. “We’ll work with both parties to turn the page on Fannie and Freddie, and build a housing finance system that’s rock-solid for future generations,” Obama said, according to a copy of his prepared remarks. See more Obama speech coverage. That might take a while. True, both the House and the Senate are working on legislation to get rid of the giants, which were took under control by the federal government in...
  • Freddie Mac’s Risk-Sharing MBS Off To A Slow Start (Wide Spread For M2 Mezz Piece)

    07/19/2013 10:32:50 AM PDT · by whitedog57
    Confounded Interest ^ | 07/19/2013 | Anthony B. Sanders
    Freddie Mac’s risk-sharing MBS is off to a slow start. 1 month Libor +350bps for M1 mezz piece and 1 month LIBOR + 750bps for the M2 mezz piece. freedierisk Freddie Mac agency credit-risk bonds price talk widens to 1ML+350bps for M1, 1ML+750bps for M2s. • Guidance from earlier this week was +250bps, +725-750bps; was even wider before deal announcement • May price as soon as July 22 • Information from two people familiar with offering who declined to be identified because terms aren’t set If we look at the term sheet, fredtermsheet, the ‘first loss’ piece is not being...
  • Freddie Mac Introduces ‘Risk-sharing’ MBS (Credit Scores Between 601 and 839)

    07/18/2013 10:01:04 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 07/18/2013 | Anthony B. Sanders
    Traditionally, Fannie Mae and Freddie Mac (along with Ginnie Mae) have focused on interest-rate risk in their mortgage-backed securities, not credit risk. But a question arose about the future of Fannie Mae and Freddie Mac: would there be a demand for MBS without a government guarantee for credit risk? Freddie Mac has begun marketing a new product, dubbed Freddie Mac Structured Agency Credit Risk (STACR) securities, designed to offload the first-loss piece of certain government-guaranteed MBS into the private capital markets. Here is the Preliminary Term Sheet for $400,000,000 (approximate) offering. fredtermsheet Here is the loan tape. STACR 2013-DN1 Investor...
  • Do We Need a Government Guarantee For Mortgages?

    06/17/2013 6:20:49 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 06/17/2013 | Anthony B. Sanders
    Earlier, I wrote about the various proposals circulating through Washington DC on the future of housing finance in the USA. Virtually every one had a government guarantee in their proposal, as if the mortgage market would collapse without Uncle Sam. As Nancy Pelosi once famously stated, we need to look at government guarantee “away from the fog of the controversy.” Several economists at The Federal Reserve produced a nice graphic on prime versus subprime borrowers. Essentially any loan with a down payment of less than 20% is considered subprime and credit scores of 660 are prime if the down payment...
  • Fannie Mae, Freddie Mac Shareholders Challenge Feds Over Gov’t Takeover

    06/14/2013 12:53:32 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 06/14/2013 | Anthony B. Sanders
    According to Nick Timiraos of the Wall Street Journal, “Lawsuit Challenges Takeover of Fannie Mae, Freddie Mac.” “Three shareholders of Fannie Mae and Freddie Mac sued the federal government Monday, alleging that the U.S. had improperly taken over the mortgage-finance companies in 2008 and that the government’s latest revision of certain bailout terms constituted an illegal taking of the firms’ assets. The plaintiffs include the City of Austin Police Retirement System in Texas and Washington Federal, a Seattle-based bank. The shareholders, who filed suit in the U.S. Court of Federal Claims in Washington, D.C., said they are seeking $41 billion...
  • Corker-Warner GSE Bill: Includes Unconstitutional Taking of Property

    06/10/2013 6:14:00 PM PDT · by whitedog57 · 10 replies
    Confounded Interest ^ | Anthony B. Sanders
    Senators Corker (R-TN) and Warner (D-VA) have a new bill on what to do with Fannie Mae and Freddie Mac. Warner-Corker Draft Here are some of the key provisions of the draft bill: The draft bill would create the Federal Mortgage Insurance Company, an agency that would provide catastrophic reinsurance for mortgage-backed securities. The agency would be governed by a five-member board and replace the FHFA, the existing regulator and conservator of the GSEs. The FMIC would operate a mortgage insurance fund modeled on the Federal Deposit Insurance Corporation’s insurance fund. Guaranty fees and other payments made to the agency...
  • Corker-Warner GSE Bill: The “New” Federal Savings and Loan Insurance Corporation (FSLIC)?

    06/10/2013 1:56:07 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 06/10/2013 | Anthony B. Sanders
    Senators Corker (R-TN) and Warner (D-VA) have a new bill on what to do with Fannie Mae and Freddie Mac. Warner-Corker Draft Here are some of the key provisions of the draft bill: The draft bill would create the Federal Mortgage Insurance Company, an agency that would provide catastrophic reinsurance for mortgage-backed securities. The agency would be governed by a five-member board and replace the FHFA, the existing regulator and conservator of the GSEs. The FMIC would operate a mortgage insurance fund modeled on the Federal Deposit Insurance Corporation’s insurance fund. Guaranty fees and other payments made to the agency...
  • Growth in Non-fixed Rate Notes — Implications for Mortgage Markets? (ARMs vs FRMs)

    06/06/2013 5:50:02 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 06/06/2013 | Anthony B. Sanders
    According to Bloomberg Briefs, there has been a jump in non-fixed rate notes. And this occurs whenever Treasury yields rise. But if we look at The Fed, Fannie Mae and Freddie Mac, they are currently invested primarily in fixed-rate products. The ARM (adjustable rate mortgage) share of mortgage applications has risen to 6.4% in recent months, but is well below historic highs. As we argued in a Mercatus research paper, “Do We Need the 30 Year Fixed-rate Mortgage?“, Mike Lea and I say no. In fact, ARMs have decided advantages over their fixed-rate cousin such as risk-sharing with the lender...
  • Sheila Bair- Barney Frank Editorial On Securitization Misleading (Fannie/Freddie Did The Same Thing)

    05/25/2013 4:20:42 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 05/25/2013 | Anthony B. Sanders
    Sheila Bair, former FDIC Commission, and Barney Frank, former Congressman, penned a misleading op-ed in Fortune/CNN Money entitled “Watch out. The mortgage securities market is at it again“. Here is the misleading sentence: Big, ugly giants with names like Countrywide Financial and New Century packaged huge pools of mortgages, sliced them up into securities, and sold them to investors, who now bore the risk if the loans defaulted. It turns out that “big, ugly giants” with names like Fannie Mae and Freddie Mac did exactly the same thing. They packaged huge pools of mortgages, sliced them up into securities, and...
  • MBS Duration Rises With Bernanke’s Testimony

    05/22/2013 12:45:12 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 05/22/2013 | Anthony B. Sanders
    Fed Chair Ben Bernanke testified this morning in the US Senate. Afterwards, US Treasury 10 year yield rose by around 9 basis points. Fannie Mae MBS current coupon rates have been rising. And the Bankrate 30 year spread over the Fannie current coupon rate remains about 100 basis points. The primary/secondary spread remains elevated from before Fannie and Freddie were put into conservatorship. And as Treasury rates trend upward, Fannie MBS durations are also rising. This results in a slower burn off rate for The Fed’s massive portfolio.
  • Regulation, The Demise Of The S&L Industry And The Rise Of Shadow Banking (Regulatory Surge)

    05/19/2013 10:07:57 AM PDT · by whitedog57
    Confounded Interest ^ | 05/19/2013 | Anthony B. Sanders
    When you watch “It’s a Wonderful Life” with James Stewart from 1946, you are given the impression that banks (as represented by Henry F. Potter) are stingy and evil. Savings and Loans (S&Ls) (as represented by George Bailey) are kind-hearted and good. A ridiculous stereotype, of course. Tell that to taxpayers who had to bail out the S&L industry to the tune of more than $124 billion. Bert Ely has a nice discussion of what happened to the S&L industry here. In short, S&L’s were regulated as to how much interest they could pay on deposits (Reg Q) and when...
  • Fannie Mae Reports Quarterly Net Income Of $58.7 Billion (Accounting Gimmick)

    05/09/2013 3:39:28 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 05/09/2013 | Anthony B. Sanders
    Like the recent positive earnings report from Freddie Mac, Fannie Mae reported quarterly net income of $58.7 billion. This is not surprising given the general decline in seriously delinquent mortgages And rising house prices since March 2012. • Fannie Mae reported quarterly net income of $58.7 billion following release of a $50.6 billion valuation allowance on its deferred tax assets. • Beginning this year, pursuant to August 2012 amendments to the terms of Treasury’s bailout, Fannie Mae and Freddie Mac will pay quarterly dividends to Treasury equal to their net worth in excess of a gradually declining capital reserve. The...
  • FHFA Limiting Fannie Mae and Freddie Mac Loan Purchases to “Qualified Mortgages”

    05/06/2013 1:41:13 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 05/06/2013 | Anthony B. Sanders
    The Federal Housing Finance Agency (FHFA) announced today that it is directing Fannie Mae and Freddie Mac to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the “ability to repay” requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). In January, the Consumer Financial Protection Bureau (CFPB) issued a final rule implementing the “ability to repay” provisions of Dodd-Frank, including certain protections from liability for loans that meet the criteria of a qualified...
  • Eight Steps to Eliminate Fannie Mae and Freddie Mac—Permanently

    04/17/2013 2:16:54 PM PDT · by Slyfox · 13 replies
    Heritage Foundation ^ | April 10, 2013 | David C. John
    It is time to close both Fannie Mae and Freddie Mac—the government-sponsored mortgage giants. Both entities distort the country’s housing finance market by issuing mortgage-backed securities with subsidized government guarantees that the mortgages will be repaid. If guarantees are necessary, they should be priced and issued by the private sector, not by the state. Financial institutions expert David C. John details specific steps to achieve this shutdown carefully and methodically without further upsetting the delicate housing market—and without making the situation worse.
  • Bankers Club: TBTF Wells Fargo Biggest Partner Of Fannie, Freddie and FHA

    04/16/2013 10:46:18 AM PDT · by whitedog57
    Confounded Interest ^ | 04/16/2013 | Anthony B. Sanders
    HUD Secretary Shaun Donovan said Congress and the Administration “should move forward this year with plans for overhauling the U.S. mortgage finance system,” including GSEs Fannie Mae and Freddie Mac, which were “seized by the government in 2008.” Donovan is quoted as saying, “Reform of the failed model of the GSEs, the private gains and socialized losses model, is a top priority and it’s critical that we make progress this year toward that goal.” There have been rumblings of GSE “reform” for the past several years. But the stock answer has been “But not now.” Fannie Mae’s record profits for...
  • Obama Administration Seeks To Replace FHFA Director With Moody’s Mark Zandi

    04/13/2013 1:55:21 PM PDT · by whitedog57
    Confounded Interest ^ | 04/13/2013 | Anthony B. Sanders
    The title of the WSJ’s Nick Timiraos article couldn’t be more ironic: “Economist Eyed for Fannie Watchdog.” It is ironic in a couple of ways. First, Zandi has no regulatory experience (as far as I know). Second, he is on record touting every government loan modification and principal reduction program. See, for example, his New York Times editorial with Joseph Stiglitz. The current FHFA Acting Director, Edward DeMarco, has been a champion of shrinking Fannie Mae and Freddie Mac’s footprint in the market and consolidating their operations. According to Timiraos: Without clear direction from the White House or Congress, Mr....
  • Obama Budget Ignores $187 Billion Cost to Taxpayers of Fannie and Freddie, But Not Future Profits!

    04/11/2013 3:03:21 PM PDT · by whitedog57
    Confounded Interest ^ | 04/11/2013 | Anthony B. Sanders
    Jon Prior at Politico reports that according to budget projections released Wednesday, taxpayers could see “a $51 billion profit on the $187 billion in federal funds that have been pumped into” Fannie Mae and Freddie Mac “since they were taken over by the government in 2008.” The catch? Fannie and Freddie would have to remain under government control for another 10 years. Wait a minute. If taxpayers spent $187 to bailout Fannie and Freddie, a $51 billion profit over ten years still leaves taxpayers in the hole for $136 billion. Politico is making it sound like a tremendous return on...
  • Fannie/Freddie Could See $51 Billion Profit … IF They Remain Under Gov’t Control For 10 Years

    04/11/2013 11:21:45 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 04/11/2013 | Anthony B. Sanders
    Jon Prior at Politico reports that according to budget projections released Wednesday, taxpayers could see “a $51 billion profit on the $187 billion in federal funds that have been pumped into” Fannie Mae and Freddie Mac “since they were taken over by the government in 2008.” The catch? Fannie and Freddie would have to remain under government control for another 10 years. Wait a minute. If taxpayers spend $187 to bailout Fannie and Freddie, a $51 billion profit over ten years still leaves taxpayers in the hole for $136 billion. Politico is making it sound like a tremendous return on...
  • FHFA’s Report on HARP Refis: Vacation/Retirement States Lead HARP Refi Activities

    04/09/2013 6:18:44 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 04/09/2013 | Anthony B. Sanders
    The Federal Housing Finance Agency (FHFA) today released its January 2013 Refinance Report, which shows that refinance volume remained high through the first month of this year. There were nearly 470,000 refinances in January, with roughly 97,600 completed through the Home Affordable Refinance Program (HARP). This brings total HARP refinances to more than 2.2 million since the program’s inception in April 2009. • Borrowers in January with loan-to-value ratios greater than 105 percent accounted for 47 percent of the HARP refinance volume. • The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of...
  • Obama Pushing For Banks To Make MORE Risky Loans At Taxpayer Expense

    04/03/2013 7:55:32 AM PDT · by whitedog57 · 8 replies
    Confounded Interest ^ | 04/03/2013 | Anthony B. Sanders
    Administration Encouraging Banks To Approve Riskier Mortgages Here we go again. This is reminiscent of Clinton/Cisneros/Cuomo’s National Homeownership Strategy that help almost destroy the banking system and left millions of households in foreclosure: nhsdream2 According to the Washington Post (4/2, Goldfarb, 489K),the Administration “is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.” The Post adds that “administration officials say they...
  • Fannie Mae Posts Record Profits After Millions Lost Homes Since 2007

    04/02/2013 6:39:53 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 04/02/2013 | Anthony B. Sanders
    Realty Trac reported last week that 300,000 homes in the US are zombies. And another 10.9 million homeowners nationwide remain at risk because they owe more than their property is worth (better known as negative equity). “While Florida leads in volume of zombie properties, Kentucky, with less than 1,000 zombie properties, leads in percentage, with zombies representing 54 percent of its total foreclosure inventory. Zombies in Washington, Indiana, Nevada and Oregon also constitute 50 percent or more of the properties in foreclosure, according to the report.” Wait a minute! How can this be true when we have 15 Federal government...
  • The Standing Dead: 300,000 Homes Are Foreclosed “Zombies,” Fannie Mae Posts Record Profits

    04/02/2013 8:26:29 AM PDT · by whitedog57 · 49 replies
    Confounded Interest ^ | 040/02/2013 | Anthony B. Sanders
    Realty Trac reported last week that 300,000 homes in the US are zombies. And another 10.9 million homeowners nationwide remain at risk because they owe more than their property is worth (better known as negative equity). “While Florida leads in volume of zombie properties, Kentucky, with less than 1,000 zombie properties, leads in percentage, with zombies representing 54 percent of its total foreclosure inventory. Zombies in Washington, Indiana, Nevada and Oregon also constitute 50 percent or more of the properties in foreclosure, according to the report.” Wait a minute! How can this be true when we have 15 Federal government...
  • What to Cut: Calls to shed debt-burdened Fannie, Freddie

    03/28/2013 3:39:51 PM PDT · by NoLibZone
    Fox ^ | March 28 2013 | FNS
    "The biggest problem with Fannie Mae and Freddie Mac is that they are financial institutions with a social mission," said Tom Schatz, president of Citizens Against Government Waste. That social mission, critics say, is to heavily subsidize mortgages for people who don't meet sound lending qualifications. "Lower income homes have a tougher time paying mortgages and when the housing market started to go under, that was the first to go," Schatz said.
  • Investor-fueled Housing Recovery: Home Prices Rise 0.1%% In January NSA

    03/26/2013 6:57:07 AM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 03/26/2013 | Anthony B. Sanders
    The economy is improving (at long last). Durable goods order surprised to the upside with a print of 5.7% SA. But the YoY NSA durable goods orders seems to be in a decline. And the housing market continues to exhibit price increases. The S&P Case-Shiller house price index rose 1.02% in January on a seasonally adjusted basis (SA). On a non seasonally adjusted basis, house prices rose only 0.1%. When we remove the seasonal adjustment, house prices nationally seem to be flat since the end of 2008 with some undulations. The big winners in January? The sand states where investors...
  • Fannie and Freddie: A Phoenix Rising From The Ashes? Or Ashes?

    03/22/2013 3:46:22 PM PDT · by whitedog57
    Confounded Interest ^ | 03/22/2013 | Anthony B. Sanders
    The government sponsored enterprises in conservatorship, Fannie Mae and Freddie Mac, are generating attention in Congress. For example, here are recent headlines (courtesy of WilmerHale). * Corker and Warren Unite on GSE Reform. Here is their bill. • As described in the Bipartisan Policy Center’s executive summary, the BPC plan would replace Fannie and Freddie with a new government entity that would insure qualifying MBS with an explicit government guarantee that would kick in only if mandatory private credit enhancement, e.g., private mortgage insurance, failed to reimburse credit losses on the re-insured MBS. • FHFA Acting Director DeMarco previously announced...
  • JPMorgan’s Follies, for All to See

    03/17/2013 2:27:38 PM PDT · by neverdem · 19 replies
    NY Times ^ | March 16, 2013 | GRETCHEN MORGENSON
    BE afraid. That’s the takeaway for both investors and taxpayers in the 307-page Senate report detailing last year’s $6.2 billion trading fiasco at JPMorgan Chase. The financial system, thanks to dissembling traders and bumbling regulators, is at greater risk than you know. After bailing out the nation’s banking system in 2008, taxpayers and investors have been assured that such a crisis will not happen again. The Dodd-Frank legislation was supposed to make our system safe from the kinds of reckless banking activities... --SNIP-- But the true value in this Senate investigation is its spotlight on the ability of bank executives...
  • Dueling Banjos: Mortgage Applications Fall, HARP Refis Increase, Fannie Back In 3% Down Market

    03/13/2013 9:04:48 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 03/13/2013 | Anthony B. Sanders
    The Mortgage Bankers Association (MBA) released their application indices this morning. In a nutshell, mortgage applications fell -4.68% from the previous week. Purchase applications fell -2.53% and are at 1997 levels as the big push for homeownership from the Clinton Administration was starting. Refinancing applications fell -5.21%. They rose the previous week as mortgage rates started rising, but have cooled off this week. In fact, you can see a trend of decline in refi applications from last September. Mortgage rates have been trending up since October of last year. In refi news, the FHFA released a report showing that Home...
  • Limited Mortgage Finance Role for U.S. Government Gains Support (From 3 Retired Senators)

    02/25/2013 11:16:37 AM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 02/25/2013 | Anthony B. Sanders
    <p>Bloomberg/Businessweek has an interesting article on the upcoming “bipartisan” panel entitled “Limited Mortgage Finance Role for U.S. Government Gains Support”.</p>
  • Fannie and Freddie Use Their “Get Out Of Jail Free” Card for Some Borrowers

    01/28/2013 6:34:00 AM PST · by whitedog57 · 5 replies
    Confounded Interest ^ | 01/28/2013 | Anthony B. Sanders
    Fannie Mae and Freddie Mac, the mortgage giants in conservatorship, played their “Get out of jail free” card and are letting some borrowers wipe out negative equity on their homes. Fannie Mae and Freddie Mac will let some borrowers who kept up payments as their homes lost value erase their debts by giving up the properties, helping Americans escape underwater loans while adding to losses at the mortgage giants bailed out with $190 billion of taxpayer money. Non-delinquent borrowers with illness, job changes or other reasons they need to move will become eligible in March to apply for a so-called...
  • Mortgage Spreads RISE After Federal Takeover of Mortgage Markets (thanks a heap!)

    01/13/2013 10:41:36 AM PST · by whitedog57 · 3 replies
    Confounded Interest ^ | 01/13/2013 | Anthony B. Sanders
    What is your prediction on mortgage spreads after the private sector almost vanished by 2008? The red line denotes non-GSE market share and the green line denotes GSE market share (e.g., Fannie Mae, Freddie Mac, etc.). The government essentially became a monopolist (although the government entities including the FHA compete with each other for market share). There are barriers to entry that would promote competition with Uncle Sam – it is called Dodd-Frank and the Consumer Financial Bureau. The vast majority of residential mortgages will continue to be purchase and/or insured by the Federal government. But after the effective nationalization...
  • Government Mortgage Enterprises Averaged 30% Risky Loan Purchases from 2001-2008

    01/08/2013 12:45:55 PM PST · by whitedog57 · 6 replies
    Confounded Interest ^ | 01/08/2013 | Anthony B. Sanders
    According to data gathered by the Federal Housing Finance Administration (FHFA), the government mortgage enterprises (mostly Fannie Mae and Freddie Mac) averaged 30% risky loan purchases from 2001-2008. My definition of risky loan is 1) FICO score 80%. This table is just for fixed-rate mortgages. Notice that Enterprise purchases peaked in 2003, but the percentage of risky purchases rose from 27.43% in 2005 to 36.79% in 2007. In terms of 90 day delinquencies, the risky loans fared worse than less risky loans. The yellow/orange cells are the worse, blue cells are the best. Of course, we know that government housing...
  • Wells Fargo CEO: Get gov’t out of “the home loan business”

    01/07/2013 12:25:29 PM PST · by SeekAndFind · 11 replies
    Hotair ^ | 01/07/2013 | Ed Lasky
    Policy-wise, this is an oldie but a goodie, I guess, even though we’re still spending tons of money on Freddie Mac and Fannie Mae more than four years after the crash. Wells Fargo CEO Robert Kovacevich can't believe that we haven't learned the lesson from 2008 and gotten the government out of the home mortgage industry, and tells CNBC's Squawk Box that the two organizations made that crash exponentially worse than it needed to be: CLICK ABOVE LINK FOR THE VIDEO Fannie Mae and Freddie Mac exacerbated the 2008 mortgage crisis, and that’s why the U.S. government should get out...
  • Bank of America Settles with Fannie Mae for $10 Billion+ – Fannie Mae As “Simple Jack”

    01/07/2013 12:03:52 PM PST · by whitedog57 · 10 replies
    Confounded Interest ^ | 01/07/2012 | Anthony B. Sanders
    Bank of American had a bad day. First, they were a party to the latest government refinancing program (the $10 billion dollar foreclosure abuse settlement). Second, Bank of America has settled with mortgage giant Fannie Mae. WASHINGTON — Bank of America Corp. said Monday it had agreed to pay more than $10 billion to Fannie Mae to settle claims related to troubled mortgages sold largely by Countrywide Financial Corp. during the subprime housing boom. First of all, it was a housing boom, not just a subprime housing boom. Second, the government mortgage giants Fannie Mae knew that a large percentage...
  • Obama Wants To Extend Gov’t Refi Programs to Non-government Held/Insured Mortgages (Kabuki Theater)

    12/26/2012 2:17:54 PM PST · by whitedog57 · 11 replies
    Confounded Interest ^ | 12/26/2012 | Anthony B. Sanders
    The radio show “Marketplace” wanted to chat this morning about the news that the Obama administration might extend its mortgage-refinancing programs to include borrowers whose mortgages aren’t backed by the government. It’s one thing for the Administration to pressure loan modifications (with Congress’ blessing) for the FHA insured mortgages. It is even a bigger stretch for the Administration to pressure Fannie Mae, Freddie Mac and FHFA to perform loan modifications (specifically principal writedowns since Fannie Mae and Freddie Mac are private corporations … in conservatorship. But it quite another thing for the Administration to pressure non-government entities to make principal...
  • Democrats Fully to Blame for Subprime Mortgage Crisis that Caused 2008 Financial Disaster

    12/22/2012 2:54:00 PM PST · by george76 · 46 replies
    Gateway ^ | December 22, 2012 | Jim Hoft
    In his early activist days, Barack Obama the community organizer sued banks to ease lending practices... During his time as a community organizer Barack Obama led several protests against banks to make loans to high risk individuals. ... A new study by the respected National Bureau of Economic Research found that Democrats are to blame for the subprime mortgage crisis. ... Republicans warned Democrats of the impending doom in 2004.
  • Lenders Get Even More Strict With Borrowers

    10/02/2012 11:21:45 AM PDT · by illiac · 37 replies
    RealtorMag ^ | 10/2/12 | RealtorMag
    Mortgage rates continue to hit new lows, but the ultra-low rates are out of reach for many would-be borrowers who can’t meet strict underwriting standards. And new national data suggests that underwriting standards for getting a loan are getting even stricter, too. FICO credit scores on all new loans closed in August averaged 750. That is nine points higher than one year ago, according to a survey of about 2 million mortgages by Ellie Mae Inc., a mortgage technology firm used by many lenders. For home owners who refinanced in August, the average FICO score was 769—even higher—at Fannie Mae...
  • Fannie Mae MBS Spread to 10 year Treasuries GOES NEGATIVE!

    09/26/2012 1:25:34 PM PDT · by whitedog57 · 16 replies
    Confounded Interest ^ | 09/26/2012 | Anthony B. Sanders
    QE3 certainly has wreaked havoc on the agency mortgage-backed securities market. The Fannie Mae 30 year current coupon (rate to MBS investors on new Fannie MBS) spread over 10 year Treasures has gone NEGATIVE! As in -3.65 basis points. But if we compare the Fannie 30 year current coupon to 5 year Treasury yields, we have a positive yield spread of about 100 basis points. Meanwhile, Fannie Mae 3.5 MBS duration just went negative! So, The Fed’s QInfinity has really done a number on MBS yields … and risk. MBS investors may be lining up to dump agency MBS on...