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Mortgage Crisis Watch Business and legal issues affecting: loan repurchases | mortgage-backed securities | mortgage insurance

Tag Archives: Fannie Mae

Loan Modification and the Failure to Mitigate Damages

By Anthony Narula and Philip R. Stein on Posted in Fannie Mae/Freddie Mac, Mortgage Repurchase

Freddie Mac Streamlined Modification Freddie Mac has announced the immediate implementation of its Streamlined Modification program, a no-document modification program offered to severely delinquent borrowers.  The implementation of the program, originally set to begin July 1, came six weeks earlier than expected in an effort to expedite financial relief for potentially thousands of distressed families. Under… Continue Reading

Big Banks Fail 2012 Fannie Mae Star Program

By Philip R. Stein on Posted in Fannie Mae/Freddie Mac, Too Big to Fail

Fannie’s Star Program reveals big banks failed to meet minimum mortgage servicer performance requirements According to a report released Tuesday by Fannie Mae, the big banks who love to act like “injured innocents” when it comes to making mortgage repurchase and indemnification demands on loan originators had their own substantial problems servicing the loans that they… Continue Reading

FHFA Announces Representation and Warranty Framework

By Andrew Pompa and Philip R. Stein on Posted in Fannie Mae/Freddie Mac, Legislation/Regulation, Mortgage Repurchase, Too Big to Fail

Lack of Certainty Facing Lenders Last week, the Federal Housing Finance Agency (FHFA) announced a new “representation and warranty framework” for conventional loans sold or delivered to Fannie and Freddie after January 1, 2013. In a clear acknowledgment of the lack of certainty facing lenders in this era of rampant repurchase demands, the agency’s announcement… Continue Reading

The FHFA’s New Buy-Back Statement

By Philip R. Stein and Robert Siegel on Posted in Fannie Mae/Freddie Mac, Mortgage Repurchase, Residential Mortgage-Backed Securities (RMBS)

Higher Degree of Certainty and Clarity? The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, released a statement yesterday saying it was working with those two entities, which are the nation’s major government-backed mortgage securities investors, to “provide lenders a higher degree of certainty and clarity around repurchase exposure and liability… Continue Reading

Future With Fannie and Freddie Lesser Evil Than With Wall Street?

By Russell Koonin and Robert Siegel on Posted in Fannie Mae/Freddie Mac, Mortgage Repurchase, Residential Mortgage-Backed Securities (RMBS), Too Big to Fail

A Rare Point of Agreement Margaret Chadbourn of Reuters recently reported {April 23} that both Republicans and Democrats have “found a rare point of agreement.” They want to phase out or at least substantially reduce the role of the Federal National Mortgage Association (Fannie Mae ) and the Federal Home Loan Mortgage Corporation (Freddie Mac… Continue Reading

Bank of America Responds to Fannie Mae’s Pressure To Cover Losses

By Philip R. Stein and Robert Siegel on Posted in Fannie Mae/Freddie Mac, Mortgage Insurance, Mortgage Repurchase, Too Big to Fail

As described on TheNicheReport.com last week, the rising number of allegedly flawed mortgage loans sold to Fannie Mae by Bank of America has created a rift between these two behemoths, each of which was bailed out by the U.S. government when the American real estate bubble burst.  Now, Fannie Mae is pressuring lender Bank of America to cover… Continue Reading

Indemnification Rights for Fannie and Freddie Leads to Ironic Defense from SEC Charges

By Robert Siegel and Julia Kim on Posted in Too Big to Fail

On December 16, 2011, the SEC filed two separate suits charging securities fraud by three former top executives from Fannie Mae and Freddie Mac, respectively. Both suits were filed in the U.S. District Court for the Southern District of New York, and allege that the executives knew and approved of 1) making misleading statements that… Continue Reading