Law and regulation

The fate of low-income and minority families under housing finance reform remains at the heart of negotiations over a Senate bill, highlighting a longstanding split between advocates pushing for affordable rental options and those urging access to homeownership.

Bill Ackman, who runs the $15 billion Pershing Square Capital Management, said that Fannie Mae and Freddie Mac will probably soar because there's no way to replace the mortgage guarantee companies.

Homeowners who had a single point of contact at their mortgage servicer were twice as likely to receive and accept a mortgage modification and half as likely to be denied a modification, according to Fannie Mae.

The Senate Banking Committee continued negotiations over the weekend on landmark legislation to overhaul the mortgage finance system, but it still remains unclear when, or if, panel leaders will reschedule a key vote on the bill.

IntercontinentalExchange Group Inc. is pitching Wall Street on new derivative contracts allowing investors to wager on U.S. homeowner defaults, six years after subprime-mortgage swaps helped fuel the financial crisis, according to five people with knowledge of the matter.

New York City Mayor Bill de Blasio's initiative for 200,000 affordable housing units over 10 years calls for a $1 billion investment from the city's five public employee pension funds and the use of tax-exempt 501(c)(3) governmental purpose bonds to finance middle-income housing.

The Federal Housing Administration's new electronic signature policy contains confusing language that could stifle lender adoption, despite its good intentions, paperless-mortgage advocates warn.

What might work better would be clarifying guidance on mortgage insurance premium rules, the meaning of bona fide discount points, and the rules for affiliate compensation.

Lenders do not necessarily have to work with AMCs. However, in reviewing all they take on and manage, it is clear where the benefit of an external partner comes into play.

A roundup of comments on our Editor at Large blog, from the best and brightest to the not-so-bright.

It looks like average credit scores have fallen, but only if you examine GSE and FHA originations separately, the think tank's researchers say. When they are combined, the average holds steady.

Satisfying the nine pillars of servicing standards which took effect earlier this year has increased complexity—forcing banks to reassess systems, processes and policies.

Deutsche Bank AG lost its challenge to a California court ruling that exposes bank trustees to wrongful-eviction claims it says will depress prices in foreclosure sales and spur lawsuits against unsuspecting homebuyers.

The Consumer Financial Protection Bureau proposed several changes to its biggest mortgage rules on Wednesday which would effectively allow lenders to get more loans defined as "qualified mortgages."

Seven of the largest mortgage servicers say they have trimmed an average of $614 off monthly payments on over 16,000 loans as part of foreclosure prevention required by a regulatory settlement.

The Federal Reserve Board on Wednesday neared the halfway mark of unwinding its unprecedented bond buying program, reducing its purchases to $45 billion.

Fannie Mae and Freddie Mac could require an additional bailout of as much as $190 billion in a severe economic downturn, according to the results of stress tests released by the regulator for the U.S.-owned companies.

The proposed federal mortgage guarantor in the Senate reform bill needs 5% hard equity to protect taxpayers, but 10% capital to pass Congress, the Housing Policy Council's John Dalton reckons.

Wells Fargo's loans make up around 20% of the pools referenced in credit risk-sharing transactions issued by Fannie Mae and Freddie Mac through March, according to Fitch.

The future of housing finance reform remains in limbo on Tuesday, after Senate Banking Committee leaders postponed a key vote on legislation to unwind Fannie Mae and Freddie Mac.