Two high-level execs at Fannie Mae will retire in the next twelve months, leading to leadership changes, officials at the GSE announced.
Fannie Mae President David C. Benson is retiring in 2024, while Chief Administrative Officer Jeffery Hayward will step down at the end of this year.
“We’re deeply grateful to both Dave and Jeff for their leadership and decades of service,” said Michael Heid, Chair of Fannie Mae’s Board of Directors. “As they depart, we are implementing our succession plans and streamlining our leadership structure to continue advancing our strategy and our mission to serve homeowners, renters, and the housing market as a whole.”
Benson served for 21 years in various roles at Fannie Mae, including Interim CEO, CFO,…
The Federal Open Market Committee’s decision to not raise interest rates at its November meeting came as welcome news to the housing industry, leading to a dip in mortgage rates after a streak of increases. But industry analysts are still concerned about a housing recession.
Analysts at Wells Fargo recently warned that a rate cooldown likely won’t lead to a market boost, citing the overall cost of both building and buying a home.
“After generally improving in the first half of 2023, the residential sector now appears to be contracting alongside the recent move higher in mortgage rates,” economists Charlie Dougherty and Patrick Barley wrote in a research note. “Although mortgage rates may gradually descend once the Federal Reserve begins…
By KIMBERLEY HAAS
The question of whether technology alone can eliminate racial bias during the home appraisal process came up during a hearing held in Washington, DC, on Wednesday.
The Federal Financial Institutions Examination Council’s Appraisal Subcommittee was holding its third public hearing when the topic was discussed.
Member JeanMarie Mattingly, who serves as deputy director of credit union resources and expansion, was asking questions of the panelists offering testimony. She started by asking about the work Freddie Mac and Fannie Mae are doing to monitor and assess appraisal reports for indications of bias.
Danny Wiley, senior director of single-family valuation at Freddie Mac, said they have an entire team focused on appraisal quality monitoring.
“We see problematic words in…
The Fed’s preferred inflation measure soared to a four-month high in September, increasing the likelihood of future Fed rate hikes.
The personal consumption expenditures price index tracks what Americans buy and for how much, offering a view into their spending habits. The core index, which excludes food and energy components, increased by 0.3% in September.
When adjusted for inflation, consumer spending rose 0.4%.
The data comes on the heels of news that the economy grew by 4.9% in Q3 2023, the fastest pace in two years and more than expected. Consumers once again waved off recession fears, but the increase puts the Central Bank in a tough position as it battles inflation.
Analysts generally maintain that another increase won’t come…
By KIMBERLEY HAAS
Leaders at Fannie Mae and Freddie Mac say they are using artificial intelligence to improve operational efficiencies.
Fannie Mae CEO Priscilla Almodovar and Freddie Mac President Mike Hutchins talked about the benefits of using AI during an on-stage conversation last week at the Mortgage Bankers Association’s annual convention and expo in Philadelphia.
Moderator Mark Jones, president of Union Home Mortgage and 2024 MBA Chairman, asked how the government-sponsored enterprises are thinking about using AI and what opportunities could arise as a result.
Hutchins said they have embraced the use of AI for quite a while.
“It’s an important part of our operations and we’re probably at the forefront of embedding AI into our models and into our…
Home prices surged again in the third quarter as home shoppers butted heads because of low inventory.
Annual single-family home price growth increased annually and quarterly from Q3 2022 to Q3 2023, according to Fannie Mae’s Home Price Index.
Price growth rose 2% quarter-over-quarter and was up 5.3% YOY, showing home price appreciation remains resilient amid stock shortages. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. …
Consumer sentiment is stuck in the pits thanks to soaring mortgage rates.
Fannie Mae’s Home Purchase Sentiment Index sank further in September, down by 2.4 points to 64.5. The full HPSI is up 3.7 points YOY, a decline from August.
Five of the index’s six components fell month-over-month. The home price expectations component increased, resulting in a net negative outlook.
Only 16% of respondents say it’s a good time to buy a home, down from 18% last month, while 84% say it’s a bad time to buy. This is new survey high.
The share of respondents who say it’s a good time to sell dropped as well, down to 63% from 66%.
Driving this pessimistic streak are mortgage rates, which…
Despite recent optimism surrounding the Federal Reserve’s “soft landing” strategy, economists at Fannie Mae are still expecting a mild recession next year.
Fannie Mae’s Economic and Strategic Research Group wrote in a note that mixed economic signals this month make it difficult to guess the near future, but a “modest contraction” in early 2024 remains the most likely outcome of the Fed’s inflation fight.
They cite consumption outpacing incomes, big differences between gross domestic product and gross domestic income over the past three quarters, and previous policy tightening still moving through the systems as signs of what’s to come.
Additionally, households are expected to restrict spending in the latter part of the year as inflated prices catch up to budgets.…
Consumer sentiment is stuck in the pits as mortgage rates remain elevated.
Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY.
Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%.
Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July.
“Consumers remain pessimistic toward the housing market in general and…
By CHUCK GREEN
Back in 2008, Fannie Mae and Freddie Mac were in trouble. In fact, without government intervention, they faced imminent collapse, and on Sept. 6 of that year, both were placed in conservatorship by the director of the Federal Housing Finance Agency.
With those conservatorships hitting their 15th anniversary, William Emmons, an adjunct lecturer at Washington University in St. Louis, said the takeover was historically significant because they were the first large-scale government interventions in what came to be known as the Global Financial Crisis.
“In other words, their collapse was a bellwether of things to come. Lehman Brothers failed one week later, which triggered the chain reaction of collapsing banks, AIG, and market confidence,” Emmons told The…
