Treasury: Overhaul Plan for Fannie, Freddie Set for January

The Obama Administration is six months away from presenting Congress with a “comprehensive” reform of the much-troubled and maligned mortgage financing system – primarily driven by Fannie Mae and Freddie Mac, according to a White House blog post by a Treasury official.

Fannie Mae Cracks Down on ‘Strategic’ Walk-Away Homeowners

Mortgage financing giant Fannie Mae said today it will punish homeowners who walk away from mortgage obligations – despite having the capacity to pay – or those who do not complete “a workout alternative in good faith.” Under a new “lockout policy,” those borrowers will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure.

Fannie, Freddie Offer Mortgage Relief in Chinese Drywall Cases

Government-run mortgage financing companies Fannie Mae and Freddie Mac are offering mortgage payment relief for homeowners struggling with Chinese drywall issues that may have forced them out of their homes.

$145B in Bailouts Later: Fannie, Freddie to be De-Listed

The regulator over Fannie Mae and Freddie Mac today said it has ordered the de-listing from U.S. stock exchanges of the two mortgage-financing giants, virtually confirming their finale as valued private firms – 21 months after they became wards of the U.S. government.

Mortgage Servicers Converge in ‘Waterfall’ of Foreclosure Fixes

Before the financial crisis and the “avalanche” of mortgage delinquencies that began in 2007, loan modifications to prevent foreclosures were case-by-case and disconnected efforts by mortgage servicers.

Regulator: Fannie, Freddie Nearly Done Buying ‘Poorest’ Mortgages

The chief regulator over Fannie Mae and Freddie Mac said the two enterprises under U.S. conservatorship have nearly eliminated the purchases of the poorest performing mortgage products that were responsible for more than a third of each entity’s first quarter losses. Those losses to date have required draws from the U.S. Treasury’s credit program of about $145 billion in quarterly bailouts.

Fannie, Freddie: Shared Data Protocol to Help Manage Risk

The regulator over mortgage financing giants Fannie Mae and Freddie Mac said the two entities will share a new data collection protocol on loan and appraisal information that will improve risk management. It could also help avoid the kind of pitfalls that nearly brought the two enterprises down at the peak of the financial crisis of 2008.

Fed Ponders Pace of Selling $1.2 Trillion in MBS Assets

Unloading $1.2 trillion from its balance sheet is no easy matter for Federal Reserve officials, with such factors as inflation, interest rates and a long, uneasy economic recovery at stake. At their April 27-28 Federal Open Market Committee meeting, Fed officials agreed that sales of its mortgage-backed securities would be implemented within a framework communicated in advance and at a gradual pace “that potentially could be adjusted in response to changes in economic and financial conditions.”

Fannie Mae to Tap Bailout Credit Line for $8.4 Billion More

Fannie Mae, the top mortgage financing company effectively owned by taxpayers, has asked for another $8.4 billion from the U.S. Treasury’s open credit line reserved for it and smaller sibling Freddie Mac. “Due to current trends in the housing and financial markets, we continue to expect to have a net worth deficit in future periods,” Fannie Mae said in its quarterly report released today.

Freddie Mac Seeks $10.6 Billion More from U.S. Treasury

Government-controlled, mortgage financing giant Freddie Mac reported an $8 billion loss in the first quarter, or $2.45 a share, and has asked for another $10.6 billion from the U.S. Treasury’s open credit line. That would bring its total bailout amount to more than $61 billion.

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