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Archive for the ‘Fannie Mae’ Category

November 10, 2011 Fannie and Freddie Seek More Aid Following Third-Quarter Losses

Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSEs) that insure about half of all new U.S. mortgages, have reported massive third-quarter losses – Freddie reported a $6 billion loss and Fannie reported a $7.6 billion loss. As a result, they have requested billions more in taxpayer aid. Freddie requested an additional $6 billion and [...]

October 11, 2011 FHFA: Foreclosure Abuse Could Have Been Prevented with Better Oversight

For the second time in as many weeks, the Federal Housing Finance Agency (FHFA) inspector general has released a report criticizing Fannie Mae and Freddie Mac, this time stating that the mortgage backers knew about potentially abusive foreclosure practices as early as 2008 but failed to develop risk controls that could have prevented them. According [...]

March 8, 2011 What will Happen Post-Fannie and Freddie?

There’s a draft of a proposal in place right now that describes a plan to phase out Fannie Mae and Freddie Mac over the next five to seven years, but even before the plan is finalized, borrowers could be affected by the parts of the plan that don’t require Congressional approval. For example, people may [...]

July 28, 2009 Modifications to the Home Affordable Refinance Program

Earlier this month, the Federal Housing Finance Agency announced an amendment to its Home Affordable Refinance Program, expanding refinance eligibility to help those homeowners who are at risk of being “underwater.” The Obama Administration’s Home Affordable Refinance Program loan-to-value requirement has been raised to 125%. Previously, the program, announced in February, only applied to borrowers [...]

July 17, 2009 New HVCC Appraisal Rules Blamed for “Destroying the Housing Market”

A recent AP article contends that there is strong backlash against the new Home Valuation Code of Conduct (HVCC) rules that were enacted on May 1, 2009. “The new guidelines bar mortgage brokers from ordering appraisals themselves, forcing them to do so through a mortgage lender. Lenders may order appraisals through in-house staff or appraisers [...]

May 27, 2009 Decrease in Home Values Correlates to Increase of Homeowners Who Are “Underwater”

Zillow.com, a real estate information service, reported that there was an increase in the number of homeowners who are considered to be “underwater” – meaning that they owe more on their mortgages than the value of their homes – as housing values continued to decrease in the first quarter of 2009. This means that approximately [...]

April 14, 2009 New Fannie Mae Rules to Prevent Inflated Appraisals

 In February, Fannie Mae, the largest source of financing for U.S. home loans, announced that it will work to ban their use of in-house appraisals. An “in-house appraisal” means that the appraisal is conducted by brokers’ employees or by appraisers who are arranged by brokers. Appraisals will now need to be conducted by appraisers who [...]