Servicing

Freddie Mac has picked a former chief executive of an online securities brokerage firm to be its new CEO, according to published reports.

The Modification Team LLC, a Lawrenceville, Ga.-based mortgage business that offers services related to property sales, modifications and notaries, was issued a cease-and-desist order from the state’s Department of Banking and Finance.

The Federal Housing Administration’s single-family program is facing headwinds as the HUD secretary tries to keep the insurance fund above water and appease critics who want to reign in government programs.

Senate Democrats may try to fast-track a bill to open up the HARP 2.0 program so more lenders can refinance high LTV Fannie Mae and Freddie Mac loans held by large servicers.

Investors will spend what they have to in order to keep REO in marketable condition, but they often work very hard to find asset managers who can sell the property in as close to the condition they find it in as they can. That’s just good business.

Fannie Mae posted $3 billion in total “comprehensive” income in the first quarter, and then turned around and paid the U.S. Treasury $2.8 billion in dividends.

One of the architects of the $26 billion settlement with five major servicers expects some borrowers will see the principal balance of their mortgages reduced by over $100,000.

The Consumer Financial Protection Bureau is charting the course for new regulation on qualified mortgages, the new QM rule. Their goal is to dissuade lenders from partaking of mortgage loan programs that involve undo risk taking by imposing more stringent underwriting principals to potential loan applicants, including requiring that borrowers show they have the ability to repay a loan.

What the heck ever happened to Uncle Sam’s subprime (real estate) lender, Springleaf Financial? Good question.

The Mortgage Bankers Association is calling for a merger of Fannie Mae and Freddie Mac’s mortgage bonds both as a “first step” in transitioning into a single security.