Finance

The U.S. Treasury and the federal overseer for Fannie Mae and Freddie Mac should consider ending government control of the two companies if Congress fails to reform the housing-finance system, Sen. Tim Johnson said.

The Federal Reserve Bank of New York has selected Mischler Financial Group, Brean Capital and Loop Capital Markets to participate in its mortgage-backed securities pilot program.

The company is a new player in the market linked to Cerberus, an investor in pre-downturn jumbo securities market participants.

A secondary market system "dominated by Fannie and Freddie in conservatorship is simply not desirable," Castro says.

Because the FHFA drew down vast amounts of taxpayer funds to "pay" for accounting provisions that would later be reversed, the GSEs remained saddled with in senior preferred stock that paid a dividend rate of 10%, until that rate was revised upward.

The underlying loan is fixed-rate and amortizes on a monthly basis over a term of 10 years, the longest loan tenure to date that has backed a single-family rental securitization.

A report due next week on the Federal Housing Administration's financial health is expected to show that the agency's reserve fund has significantly improved over the past year.

Mel Watt, director of the Federal Housing Finance Agency, has set off a political tempest.

Fannie Mae has entered into deals with JPMorgan Chase and other companies that transfer some of the credit-loss risk on mortgage-backed securities to investors. Not only do these deals reduce the danger that taxpayers could be forced to cover the GSEs losses, they may help make mortgages more affordable.

Mortgage rates fell slightly compared to last week, according to Freddie Mac.

Applications for new home purchases picked up in October, particularly for higher-priced properties, according to the Mortgage Bankers Association.

A new multifamily investment product will for the first time allow Freddie Mac to buy and guarantee bonds backed by multifamily loans that were originally underwritten by private entities.

One-third of the nation's counties now have access to e-recording software, according to the Property Records Industry Association,

Federal prosecutor Loretta Lynch may soon replace Attorney General Eric Holder, leaving bankers wondering whether she will be tougher on institutions than her predecessor.

A renewed interest in subdivisions that stalled during the recession is likely the main reason the California Debt and Investment Advisory Commission reported doubling of refunding volume in land-secured Mello-Roos bonds from fiscal year 2011-12 to 2012-13, according to government consultant Larry Kosmont.

Industry observers have mixed reactions on whether next year's Republican-controlled Congress will finally address long-stalled efforts to reform Fannie Mae and Freddie Mac.

Commercial mortgage-backed security delinquencies declined during October, according to Fitch Ratings.

Despite policy changes that apply to new reverse mortgages, the rights for existing spouses of deceased borrowers remain unclear and subject to change until HUD and litigants agree on a final policy in line with court directives.

While the government-sponsored enterprises' move to allow down payments as low as 3% comes with some inherent risks, Fannie Mae executives are confident they can responsibly administer the new guidelines to ensure they're an effective tool for increasing access to credit.

Essent Group, a mortgage insurance company based in Radnor, Pa., reported higher third-quarter profits, due to a surge in revenue from premiums.