The Federal Finance Housing Agency on Monday announced 2021 housing goals for Fannie Mae and Freddie Mac that are identical to the mortgage purchase goals that were in place for the last three years. “Due to the economic uncertainty related to the COVID-19 national pandemic, FHFA is proposing benchmarks for calendar year 2021 only, and those levels will remain the same as they were for 2018-2020,” FHFA said in announcing the goals. Here are the single-family goals for 2021: GoalCurrent 2018-2020 benchmark Proposed 2021 benchmarkLow-Income Home Purchase Goal24 percent24 percentVery Low-Income Home Purchase Goal6 percent6 percentLow-Income Areas Home Purchase Subgoal14 percent14 percentLow-Income Refinancing Goal21 percent21 percent Here are the multi-family goals for 2021: GoalCurrent 2018-2020 benchmark Proposed 2021 benchmark Low-Income Goal315,000…
As the coronavirus pandemic drags into summer, the Federal Housing Finance Agency announced Thursday that it is extending flexible loan origination policies for another month. The Fannie Mae and Freddie Mac policies, which had been set to expire at the end of July, will be extended until the end of August. They include: Alternative appraisals on purchase and rate term refinance loans;Alternative methods for documenting income and verifying employment before loan closing; andExpanding the use of power of attorney and remote online notarizations to assist with loan closings.…
As the Supreme Court wrapped up its current term, it announced Thursday that it would hear a pair of cases related to litigation around the structure and payout dividend payout practices of Fannie Mae and Freddie Mac, Reuters reported. Reuters reports: The justices will review a 2019 ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals that shareholders in the two companies could pursue a challenge to the 2012 agreement between the Federal Housing Finance Agency and the Treasury Department. The deal eliminated dividend payouts to various shareholders and required the companies to pay the U.S. Treasury an amount equal to their quarterly net worth each quarter. The court also took up a related appeal brought by the shareholders…
By Jim Perskie Opposing wings of the Democratic Party released sweeping policy recommendations, including proposals to reverse policies and practices that “have made homeownership all but impossible for millions of working families.” The proposals – released by the Biden-Sanders Unity Task Force – were released Wednesday as part of a 110-page document meant to bring together supporters of former Vice President Joe Biden and Sen. Bernie Sanders ahead of the November election. “Democrats believe the government should take aggressive steps to increase the supply of housing, especially affordable housing, and address long-standing economic and racial inequities in our housing markets,” the proposal states. “We will equalize access to affordable credit and improve access to down payment assistance to help families of color, low-income…
President Trump announced overnight that he is considering doing away with a federal rule designed to overcome historic patterns of segregation. “At the request of many great Americans who live in the Suburbs, and others, I am studying the AFFH housing regulation that is having a devastating impact on these once thriving Suburban areas. Corrupt Joe Biden wants to make them MUCH WORSE. Not fair to homeowners, I may END!” the President Tweeted Tuesday night. At the request of many great Americans who live in the Suburbs, and others, I am studying the AFFH housing regulation that is having a devastating impact on these once thriving Suburban areas. Corrupt Joe Biden wants to make them MUCH WORSE. Not fair to…
The Supreme Court ruled Monday that the structure of the Consumer Financial Protection Bureau is unconstitutional – but left in place the rest of the legislation creating the consumer protection agency. Writing for the majority in the 5-4 decision, Chief Justice John Roberts said the law violate the separation of powers clause because it prevented the president from firing the agency director at will. The law said the director could only be fired “for cause.” “We therefore hold that the structure of the CFPB violates the separation of powers,” the Supreme Court ruled. “We go on to hold that the CFPB Director’s removal protection is severable from the other statutory provisions bearing on the CFPB’s authority. The agency may therefore continue…
Good news for renters. The Federal Housing Finance Agency announced Monday that Fannie Me and Freddie Mac are allowing mortgage servicers to extend forbearance agreements for multifamily property owners during the coronavirus pandemic. The announcement applies to existing owners with existing forbearance agreements, bringing the total forbearance – or pause in paying mortgage payments – to up to six months. “During the pandemic, FHFA has been focused on protecting renters and borrowers while ensuring the mortgage market functions as efficiently as possible,” FHFA Director Mark Calabria said. “The multifamily mortgage forbearance extension announced today will help renters stay in their homes and help property owners retain their properties.” While the properties are in forbearance, landlords must suspend all evictions for…
After spending months trying to arrange a repayment plan with her mortgage servicing company, a South Carolina homeowner filed a complaint with the Consumer Financial Protection Bureau. The complaint was listed as closed just days after Shellpoint Mortgage Servicing provided the agency with its explanation – one that did not resolve the issue and one that is not sufficient to the homeowner. The homeowner learned that Shellpoint was her new mortgage servicer in December after receiving correspondence that she and her husband were behind on their payments. Although she said they were current as of September, Shellpoint said otherwise. The homeowner said they eventually reached an agreement to make down-payment of $6,577.71 so they could enter a repayment plan, but Shellpoint…
The Consumer Financial Protection Bureau announced Monday that it is proposing replacing the debt-to-income ratio for qualified mortgages with a loan price-based approach. The bureau said it is proposing the change because “a loan’s price, as measured by comparing a loan’s annual percentage rate to the average prime offer rate for a comparable transaction, is a strong indicator and more holistic and flexible measure of a consumer’s ability to repay than debt to income alone.” The proposal is one of two issued by the CFPB to address what is known as the GSE Patch, which is schedule to expire in January 2021 or when the GSEs (Fannie Mae and Freddie Mac) exit conservatorship, whichever comes first. CFPB explains the need…
The Federal Housing Finance Agency and Federal Housing Administration announced Wednesday that they are extending the moratorium on foreclosures and evictions as the nation continues to cope with economic fallout from the COVID-19 pandemic. The ban on evictions and foreclosures will be in place until at least Aug. 31. It was set to expire on June 30. “To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium. During this national health emergency no one should worry about losing their home,” FHFA Director Mark Calabria said. “While the economic recovery is already underway, many American families still need more time and assistance to regain their financial footing,” HUD Secretary Ben Carson said. “Our foreclosure and…
