GSEs

Mortgage applications decreased 0.8% for the week ending Oct. 30 according to the Mortgage Bankers Association's weekly survey — an improvement from the 3.5% drop registered the week prior.

Freddie Mac Chief Executive Donald Layton insisted Tuesday that the government-sponsored enterprise showed "very strong fundamentals" in the third quarter, despite reporting a $501 million loss due to an accounting mismatch with its use of derivatives.

Freddie Mac posted a third quarter loss of $501 million, its first quarterly loss in four years, but the government-sponsored enterprise will not request a draw from the U.S. Treasury.

Cherry Hill Mortgage Investment Corp. has purchased its first mortgage servicing rights portfolio, with an aggregate unpaid principal balance of roughly $1.4 billion.

Loan demand and conditions remained largely unchanged in the third quarter, with some easing of credit standards for consumer and auto loans, according to a survey of senior loan officers conducted by the Federal Reserve.

The government-sponsored enterprise is working to rebuild partnerships with church organizations and housing financing agencies as part of a broader effort to make owning a home affordable for low- and moderate-income families.

Deutsche Bank is exiting agency residential mortgage-backed securities trading as part of a larger strategic plan announced Thursday that cuts thousands of positions in numerous business lines worldwide.

The administration apparently intends to leave office without addressing Fannie Mae and Freddie Mac's capital bases and therefore the tight credit conditions.

The report from independent auditors will likely show that FHA remains below its 2% statutory minimum capital ratio, but HUD officials and outside observers still expect it to show major improvement over last year.

Interest rates on 30-year fixed-rate mortgages fell three basis points during the week ending Oct. 29, as the market increasingly expects the Federal Reserve to hold off on raising rates, according to Freddie Mac.