OFHEO Director Armando Falcon Jr. is considering a special capital charge on Freddie Mac and possibly a limit on its portfolio growth until the mortgage giant takes the necessary remedial actions required under the consent decree announced on Wednesday.Mr. Falcon said he might require Freddie to post as much as an additional 30% minimum capital until it takes remedial action to fix its financial reporting problems. At a news conference discussing the decree, he said he is considering these moves but has not made a final decision yet. "We are going to consider how much of a [capital] surplus the company should maintain until all these remediation efforts have been fully implemented," the director said. He noted that he can impose these measures by edict and does not have to wait for the regulatory process. The sanctions are mentioned in the Office of Federal Housing Enterprise Oversight's report on the $5 billion reaudit scandal (see item below). But a Freddie Mac spokesman said the sanctions are not in the decree. "We can't say anything more about it at this time," the spokesman said.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
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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.
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
11h ago -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
April 18 -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18