The Office of Federal Housing Enterprise Oversight and outside counsel for Freddie Mac are investigating what is being described as a servicing "transaction" between the mortgage giant and one of its former top strategic alliance partners, Bank of America.At MortgageWire's deadline on Wednesday it was unclear what the investigation entailed. Both OFHEO and Freddie Mac confirmed that a transaction between Freddie and BoA is under review. A source described it as "one transaction" that took place in 2000 but declined to discuss the size of the deal. A Freddie Mac spokesman said the government-sponsored enterprise's audit committee brought the transaction to the attention of its outside counsel, Baker Botts LLP. "We don't think the issue is important enough to impact our restated financial statements," the Freddie spokesman said. "It won't affect our 2003 results either." In early 2003 BoA ended its strategic alliance with Freddie. Under an SA arrangement, a seller/servicer promises to sell most of its conventional production to a GSE in return for a lower "guarantee fee." A lower g-fee arrangement can allow a mortgage banking firm to have greater servicing fee income.
-
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.
9h 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.
11h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
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