The Office of Federal Housing Enterprise Oversight started looking at the way Fannie Mae and Freddie Mac set loan guarantee fees for different sellers several months ago, according to a recently released letter to Congress."We have started to analyze the data to assess how the fees vary across sellers," OFHEO Director Armando Falcon Jr. says in an Oct. 27 letter to Rep. Richard Baker, R-La. The study is still under way, and there is no timetable for its completion, an OFHEO spokeswoman told MortgageWire. The two government-sponsored enterprises negotiate "g-fees" with their largest customers and generally offer fixed prices to their smaller customers. This disadvantage has prompted smaller sellers to form cooperatives or to use their trade groups to negotiate special deals. In the Oct. 27 letter, the OFHEO director comments that Fannie and Freddie are able to charge high g-fees due to their GSE status and to limited competition in the conforming loan market. "While the fees received prudently cover costs and provide essential risk protection, they also contribute to the Enterprises' unusually high rates of return," Mr. Falcon says.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11