The former director of the Office of Federal Housing Enterprise Oversight believes the on-balance-sheet portfolios of Fannie Mae and Freddie Mac should be reduced by Congress.In a speech before the National Association of Hispanic Real Estate Professionals, Armando Falcon Jr. said, "You could downsize these companies and they would be healthier, much less risky, and more mission-focused." Current OFHEO Director Stephen Blumenthal, acting in an interim capacity, has declined to take a public position on portfolio limits. Mr. Falcon, who left OFHEO a year ago, said that even with portfolio limits the two government-sponsored enterprises would be very profitable companies. Speaking at the same meeting, Freddie Mac vice president Robert Zimmer said reducing the GSEs' portfolios would only shift the mortgage risk to other financial institutions. He said it would also reduce the GSEs' ability to provide liquidity to the mortgage market and act as a stabilizing force during market disruptions. Fannie Mae also opposes portfolio limits. (See the April 24 issue of National Mortgage News for more details.)
-
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
1h ago -
In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
1h ago -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
9h ago -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
10h ago -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
10h ago -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18