Realty Reality: fannie mae

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Tuesday, June 10, 2008

HUD: Setting The Record Straight

The following was posted on HUD's new News Release page...

"Today (June 10, 2008), the Washington Post, citing former HUD officials and academics, claimed HUD’s affordable housing goal requirements of Fannie Mae and Freddie Mac helped to fuel the collapse of the subprime mortgage market. This is a gross misrepresentation of much larger forces that were at work in the mortgage market. We believe it’s time for a reality check..."

You can decide for yourself who has the straight record:

Full HUD Article (6/10)

Original WP article (6/9)

Visit my web site for additional services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Friday, May 16, 2008

Fannies Mae's Withdrawal of Declining Market Policy Will Help Housing Market

Fannie Mae today withdrew its declining market policy and adopted uniform national downpayment requirements, making financing more affordable and available and stabilizing the credit markets, said the National Association of REALTORS®(NAR).

NAR and other real estate and banking organizations have been calling on both Fannie Mae and Freddie Mac to change their declining market policies, which disproportionately affects minorities and lower income families and communities as well as first-time home buyers, further contributing to the sluggish housing market.

“These new policies will help stabilize the credit markets, which will help encourage buyers to come back into the housing market,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “The former policy was not good for many potential homeowners, and bad for the housing market because it stigmatized communities with lower sales and prices. We are pleased Fannie Mae took action to remove the extra 5 percent down payment on homes in declining markets.”

Gwen MuseEvans, Fannie Mae vice president for credit policy and controls, told hundreds of REALTORS® earlier in the week that Fannie Mae would be replacing the existing policy that required higher minimum downpayments for properties in markets that are considered declining, for a policy that allows buyers to borrow up to 97 percent loan-to-value, even in markets in which prices have declined. “We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed,” said MuseEvans.

“The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market. We are very appreciative to Fannie Mae for listening to us and agreeing that these changes were needed to help more families achieve the dream of homeownership,” said Lawrence Yun, NAR chief economist.

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Fannie Mae's News Realease Regarding Decision

Friday, April 04, 2008

Latest Updates About NYAG/FreddieMac/FannieMae Agreement

Check for the latest updates pertaining to the March 3, 2008, agreement between Fannie Mae/Freddie Mac, New York Attorney General, and the Office of Federal Housing Enterprise Oversight (OFHEO).

Appraisal Instutute News and Advocacy

See also prior article: Home Valuation Code of Conduct To Take Effect in 2009

Saturday, March 15, 2008

Home Valuation Code of Conduct To Take Effect in 2009

Agreements Signed To Combat Appraisal Fraud

Washington, DC – OFHEO Director James B. Lockhart announced agreements on 3/3/2008 with OFHEO, New York State Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac (the Enterprises) to strengthen the independence of the appraisal process. For mortgages the Enterprises buy or guarantee, the agreements seek to enhance appraisal and evaluation services that are critical to the residential mortgage process. Flawed appraisals artificially inflate home prices and are often a sign of mortgage fraud and undue influence on appraisers.

"Accurate, independent appraisals are very important to ensuring the safety and soundness of Fannie Mae, Freddie Mac and the mortgage market," said Director Lockhart. "These agreements build upon existing federal and state laws and regulations to further strengthen the single-family home appraisal process. The agreements should help restore confidence in the mortgage market by enhancing underwriting practices, reducing mortgage fraud and making home valuations more reliable. I thank the Attorney General, Fannie Mae and Freddie Mac for their strong roles in this important effort."

There are many significant provisions in the agreements that are designed to strengthen the independence of appraisers, including eliminating broker-ordered appraisals, prohibiting appraiser coercion, and reducing the use of appraisals prepared in-house or through captive appraisal management companies in underwriting mortgages. The agreements also enhance quality control in the appraisal process and establish a complaint hotline for consumers. The agreements include a Home Valuation Code of Conduct that the Enterprises will apply to lenders selling mortgages to Fannie Mae or Freddie Mac. The Code becomes effective on January 1, 2009.

The parties also agreed to establish and the Enterprises fund an Independent Valuation Protection Institute designed to supplement current efforts to provide an appraisal complaint process, mediation of appraisal disputes, and mortgage fraud reporting. The agreement seeks the comments and concurrence of the federal banking agencies and solicits the comments of market participants that will be considered in making amendments to the Code during the implementation process.

“Attorney General Cuomo and I understand these are strong steps which will improve our mortgage finance system,” said Lockhart. “This Code is one way of ensuring that homebuyers and secondary mortgage market investors get the fair and independent property valuations that they expect and deserve. At the same time, I will be closely monitoring the nine-month period prior to implementation. OFHEO is committed to working closely with fellow regulators, the New York Attorney General, Fannie Mae, Freddie Mac, appraisers, lenders and other market participants to assure that the roll-out of the new code builds upon best practices, recognizes constructive comments to identify further refinements, and avoids unintended consequences."

"In addition, OFHEO will continue its work to combat mortgage fraud, including its joint efforts with state and federal regulators. It is imperative that state appraisal licensing bodies be active in policing appraisal practices at the state level and that federal agencies share information on a timely basis in order to assist law enforcement and regulatory efforts to fight mortgage fraud," Lockhart said.

Source: OFHEO

According to the NY Office of the Attorney General:

* Nation’s Two Largest Purchasers of Home Loans Agree to Only Buy Mortgages From Banks That Meet Requirements of (OFHEA) New Home Value Protection Code

* Independent Institute Established with $24 Million from Fannie Mae and Freddie Mac to Implement and Monitor Code

Fannie Mae and Freddie Mac, which purchase roughly 60 percent of all home loans originated in the United States, have agreed to the following:

** Establishment of the “New Home Valuation Protection Code,” (the “Code”), which creates requirements governing appraisal selection, solicitation, compensation, conflicts of interest and corporate independence, among other reforms. (Full Code Attached). Under the new Code:

*** Mortgage Brokers will be prohibited from selecting appraisers;

*** Lenders will be prohibited from using “in-house” staff appraisers to conduct initial appraisals and

*** Lenders will be prohibited from using appraisal management companies that they own or control.

** Banks will be required to adhere to Code. Beginning January 1, 2009, Fannie Mae and Freddie Mac will require that lenders represent and warrant that appraisals related to mortgage loans originated on or after January 1, 2009 conform to the code or they will not be purchased.

Source: NY OAG

More information:
NY OAG Full Press Release
AI News Release: Appraisal Institute Supports Cuomo's Efforts Toward Appraiser Independence
OFHEA: Home Valuation Code of Conduct, which becomes effective on January 1, 2009 (pdf)
Fannie Mae Agreement (pdf) Fannie Mae Press Release
Freddie Mac Agreement (pdf) Freddie Mac Press Release
Where to submit Comments (to Fannie Mae and Freddie Mac) on Home Valuation Code of Conduct (pdf)

Tuesday, December 19, 2006

eFannieMae

For those of you that want to access some of the same mortgage information that your mortgage professionals access here is one of those places:

eFannieMae.com

"eFannieMae.com is Fannie Mae's business-to-business Web site for our customers and partners in the mortgage industry. This site contains information and tools to help our customers transact business with Fannie Mae."

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Friday, August 11, 2006

HUD Launches Review of Fannie Mae and Freddie Mac Investments

The Department of Housing and Urban Development (HUD) announced Thursday that it has scheduled separate meetings this week with Fannie Mae and Freddie Mac to launch its comprehensive review and evaluation of their investment activities. As part of the review process, each will be required to compile and submit accounting data as specified by HUD. (Source: HUD)

Full Story . . .

Visit my web site for additional resources and services: www.LawrenceYerkes.com

and visit BestHomes-NJ.com for the latest New Jersey Real Estate property listings (residential, commercial, multi-family, farm, land)

OFHEO Director Calls For GSE. Regulatory Reform

In a speech to the Administrative Law and Regulatory Practice Section of the Banking and Financial Institution of the American Bar Association, Office of Federal Housing Enterprise Oversight Director James B. Lockhart III called for new legislation to regulate Fannie Mae and Freddie Mac. "Why do we need reform?" Lockhart said. "One way to answer this question is to look at it from the perspective of Basel II, the proposed international regulatory rules for banks. These rules lay out three pillars for ensuring sound financial institutions. They are: 1) strong capital rules; 2) a strong regulator; and 3) market discipline. Unfortunately, with Fannie Mae and Freddie Mac, one of the pillars is missing, market discipline, and the other two are weak. The weakness of the regulatory framework helped contribute to their problems. It is also why reform of the current regulatory environment is needed." (Source: OFHEO)

Full Story . . . (PDF file)

Thursday, November 10, 2005

HUD Finalizes Rule To Make More Fannie Mae and Freddie Mac Mortgage Data Available To The Public

WASHINGTON – The Department of Housing and Urban Development (HUD) today published a final rule that establishes procedures for determining whether certain types of loan level data on mortgages purchased by Fannie Mae and Freddie Mac, two Government Sponsored Enterprises (or GSEs), can be released to the public. The new rule could have the effect of making more GSE data available to the public, thereby facilitating research on affordable lending and housing markets.

The rule establishes new procedures to allow for additional circumstances under which data currently classified as proprietary could be reclassified as non-proprietary data. The new procedures allow for the possible public release of GSE mortgage data (both at the loan level and in aggregated form) that the Department determines, by regulation or order, to reclassify from proprietary to non-proprietary status for prospective release. In these instances, the regulation or order may also provide for the release of the corresponding data for all preceding years as well. Another new provision will permit the Department to reconsider the proprietary status of data that have aged at least five years and to re-classify such data to non-proprietary status on a case-by-case basis if additional analysis, as required by HUD’s current regulations, supports this reclassification.

The new rule does not alter HUD’s duty under its existing regulations to evaluate the implications of releasing any loan-level mortgage data, including the probable impact on consumer and business privacy issues, before determining the proprietary status of the data.

HUD’s new final rule is consistent with a Congressional mandate under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (FHEFSSA) that HUD make available, in forms useful to the public, data submitted by the GSEs relating to their mortgage purchases to fill the ”information vacuum” that Congress determined existed prior to enactment of FHEFSSA.

Source: HUD No. 05-156

Visit my web site for additional resources and services: http://www.LawrenceYerkes.com

or visit http://www.BestHomes-NJ.com for the latest New Jersey Real Estate property listings (residential, commercial, multi-family, farm, land)

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