Senate Banking Committee Chairman Richard Shelby, R-Ala., does not want a affordable housing fund to be based on GSE profits, a committee spokesman said, and the senator is considering other "mechanisms" in drafting a GSE regulatory reform bill."There are better mechanisms to refocus" Fannie Mae and Freddie Mac on affordable housing, committee spokesman Andrew Gray said. Committee Democrats support a proposal, drafted by Sen. Jack Reed, D-R.I., that would require the two government-sponsored enterprises to contribute 5% of their profits to an affordable housing fund. But Sen. Shelby is concerned that it would encourage the GSEs to increase their profits by expanding the size of their mortgage portfolios. Sen. Reed discounted those concerns. "We hope the new GSE regulator will very carefully monitor not just this housing program, but their overall portfolios," he told MortgageWire. Earlier this year, the Mortgage Bankers Association recommended to the House and Senate banking committees that Fannie's and Freddie's contributions to an AH fund could be tied to a percentage of their outstanding debt, which would act as a restraint on portfolio growth. "It creates a different set of incentives, and it is one that may be gaining new currency," the MBA's top lobbyist Kurt Pfotenhauer said.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
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