Finance

The distressed loan sales strategy has been in test mode since 2002. A rise in owner-occupant transactions may have made it more compelling.

Top banks are underwriting the deal, but most of the securitization's loans lack documentation.

The proposal is one of several that aims to address difficulties managing early buyouts from mortgage-backed securities pools.

Eastern Union put the blame on the other company Fannie Mae suspended, Sevenstone Capital, which was by former employees who left over four years prior.

Annualized inflation increased to 2.7% in November from 2.6% the previous month, providing further evidence that the economy remains strong despite restrictive monetary policy.

A slower rate of price increases would boost the likelihood of an interest-rate cut that could expand loan demand and lower banks' deposit costs. A higher pace of inflation, however, could derail those catalysts.

But the Federal Housing Administration program was the only mortgage loan type to gain market share month-to-month as measured by rate lock percentage.

An interest rate drop spurred an unusually high number of recently originated mortgages to prepay, and one loan type proved to be particularly reactive.

Valverde, who has a wide range of experience in capital markets and housing finance, will join the government-sponsored enterprise's single-family unit.

The average cost for a loan seller to buy back a mortgage from Fannie Mae or Freddie Mac for defects is over $32,000, a study from Reggora and Stratmor found.