DS News - Digital Archives

AGENCY REVIEW A LOOK AT THE GSES' LATEST DELINQUENCY NUMBERS AND TOP HEADLINES 5.59% fannie single family freddie single family 5.07% September 2013 fannie » 2.55% freddie » 2.58% 4.55% 4.03% 3.51% 3.00% 2.48% note: Delinquent loans reported here include all single-family loans 90 or more days past due as a percentage of portfolio size. Historical data covers a moving 12-month period. Source: Fannie Mae September 2013 Monthly Summary and Freddie Mac September 2013 Monthly Volume Summary. 1.96% 1.44% 0.92% 0.40% /13 /13 09 08 /13 /13 07 06 /13 /13 05 /13 04 /13 02 03 /12 /13 01 12 /12 /12 11 /12 10 /12 09 08 /12 /12 07 /12 /12 06 05 /12 04 03 /12 /12 01 02 /11 /11 11 12 /11 /11 09 10 HARP SHARE RISES IN AUGUST, GSE REFINANCES DECLINE August's rising FHFA has widened the pool of HARP- (LTV) of 105 percent or mortgage rates continued greater was 25,469, with eligible loans by shifting criteria for the cutoff date. Now, mortgages with to impact refinance 11,372 on loans with LTVs a start date or note date on or before numbers reported by above 125 percent. Year-toMay 31, 2009, can be refinanced under Fannie Mae and Freddie HARP; previously HARP was only for date, borrowers with LTVs Mac, according to the loans sold to the GSEs or securitized by greater than 105 percent Federal Housing Finance have accounted for 42 that date. Agency (FHFA). percent of HARP volume The agency reported 302,373 refinances in reported by the GSEs, according to FHFA. August, down from 360,121 in July. The majority Since HARP started, approximately 2.5 came through Fannie Mae—201,986—with the million refinances under the program have been smaller Freddie Mac reporting about half that for primary residences, with 92.6 million on amount at 100,387. second homes. The remainder—338,495—have Together, the GSEs refinanced an estimated been for investment properties. 68,340 mortgages through the Home Affordable Nevada continues to be an active state for Refinance Program (HARP), bringing the total HARP. An estimated 57 percent of refinances in number of HARP refinances to 2.9 million the state have gone through HARP year-tosince the program's inception. date. Florida is the second-most active state, HARP share increased, with volume with HARP marking up half of refinance representing 23 percent of total refinance activity volume from January-August 2013. during the month compared to 22 percent in July. Nationwide, HARP represents 22 percent of Throughout the month, the number of refinance volume year-to-date through August, HARP refinances with loan-to-value ratios FHFA reported. 22 FHFA PROHIBITS SERVICER REIMBURSEMENT FOR CAPTIVE REINSURANCE The Federal Housing Finance Agency (FHFA) has directed the GSEs to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. The agency's decision follows a notice published in the Federal Register last March disclosing FHFA's views on these lender-placed insurance practices and accepting public input. The notice also cited concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks. "FHFA remains concerned about the cost of lender-placed insurance for Fannie Mae, Freddie Mac, and consumers," said Edward DeMarco, acting director of FHFA. "One of our primary responsibilities as conservator of Fannie Mae and Freddie Mac is to preserve and conserve their assets on behalf of taxpayers. This directive is intended to reduce their costs as we consider additional measures." FHFA established a working group consisting of federal and state regulatory agencies to ensure all parties with an interest and role in the subject of lender-placed insurance were engaged in the discussion. The views of the working group were carefully considered along with more than 30 replies FHFA received from consumer advocates, state officials, lender-placed insurance carriers, servicers, individuals, and trade associations in response to the notice. This recent action reflects this input. Fannie Mae and Freddie Mac will issue new guidance to sellers and servicers prohibiting these practices and explaining the GSEs' expected implementation schedules. KNOW THIS Non-agency single-family MBS issuance remains less than 2% of the market, according to the Urban Institute.

• Cover