Financial Crisis News Center

FHFA Releases U.S. Monthly House Price Index

This story appeared in Bank Digest.

The Federal Housing Finance Agency has announced that U.S. home prices rose 0.6 percent on a seasonally adjusted basis from September to October, according to the FHFA’s monthly House Price Index. The previously reported zero percent change in September was revised to a 0.4 percent decline. For the 12 months ending in October, U.S. prices fell 1.9 percent. The U.S. index is 10.8 percent below its April 2007 peak.

Mortgage Interest Rates Reported

This story appeared in Bank Digest.

The Federal Housing Finance Agency has reported that the average interest rate on conventional 30-year, fixed-rate mortgage loans decreased 13 basis points to 5.10 percent in October. The average interest rate on 15-year, fixed-rate loans decreased 15 basis points to 4.62 percent in October. These rates pertain to mortgages closed during the October 26-31 period.

Home Prices Increase Slightly in Third Quarter

This story appeared in Bank Digest.

U.S.house prices rose modestly in the third quarter of 2009, according to the FHFA's seasonally adjusted purchase-only house price index (HPI). The HPI, calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages, was 0.2 percent higher on a seasonally adjusted basis in the third quarter than in the second quarter of 2009. Over the past year, seasonally adjusted prices fell 3.8 percent from the third quarter of 2008 to the third quarter of 2009.

GSE Loan Modifications Continue to Grow

This story appeared in Bank Digest.

FHFA Acting Director Edward J. DeMarco has released the monthly Foreclosure Prevention Report, which provides comprehensive monthly data on the loss mitigation efforts of Fannie Mae and Freddie Mac as well as information on delinquencies, foreclosures initiated and foreclosures completed. Fannie Mae and Freddie Mac completed nearly 32,000 home retention actions in August 2009, a 32 percent increase from July. Also, trial mortgage loan modifications under the Administration's Home Affordable Modification Program increased nearly 30 percent from September to October 2009.

Issa Calls on President to Appoint FHFA Inspector General

This story appeared in Bank Digest.

House Committee on Oversight and Government Reform Ranking Member Darrell Issa, R-Calif., has sent letters to White House Counsel Gregory B. Craig, Deputy Assistant  Attorney General for the Office of Legal Counsel (OLC) Daniel Koffsky, General Counsel for the Federal Housing Finance Agency (FHFA) Alfred M. Pollard and FHFA Associate Director for Internal Audit Edward Kelley expressing concern regarding the lack of an Inspector General at the FHFA, the federal agency responsible for overseeing Fannie Mae and Freddie Mac. In his letter to White House Counsel Craig, Issa wrote, “We are now eleven months into this Presidency. The President’s failure to act has left the agency charged with overseeing two of the most irresponsible government sponsored entities—Fannie Mae and Freddie Mac—without any inspector general. In light of the Democratically-controlled, filibusterproof Senate, the President’s failure to act is unacceptable and reckless.”

FHFA Releases 2009 Performance and Accountability Report

This story appeared in Bank Digest.

The Federal Housing Finance Agency has released its 2009 Performance and Accountability Report (PAR), detailing the agency’s performance and achievements for fiscal year 2009. During the fiscal year covered by the PAR, FHFA conducted examinations and targeted supervisory reviews at Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks to assess their safety and soundness and their support for housing finance and affordable housing.

In addition to these supervisory activities, including completing the first full year of overseeing Fannie Mae and Freddie Mac in conservatorship, the report describes FHFA’s accomplishments in establishing itself as a new agency. The report explains the steps FHFA took to stand up the new agency, created by the Housing and Economic Recovery Act on July 30, 2008. In its first full year in existence, FHFA received an unqualified audit opinion from the Government Accountability Office.

http://www.fhfa.gov/webfiles/15183/FHFAPARNov2009.pdf

Oversight’s Ranking Member Calls for FHFA-IG Clarification

This story appeared in Bank Digest.

Oversight and Government Reform Committee Ranking Member Darrell Issa, R-Calif., has raised questions about whether the Federal Housing Finance Agency has an effective Inspector General. Press reports have indicated that the agency's chief has questioned the authority of the existing IG. Issa called for the former IG of the Federal Housing Finance Board to be empowered to continue to act until a permanent appointment is made, and he questioned whether Fannie Mae and Freddie Mac should receive any additional government support until then.

GSE Loan Limits Unchanged for 2010

This story appeared in Bank Digest.

The Federal Housing Finance Agency has announced that the maximum conforming loan limits for mortgages originated in 2010 will remain unchanged from the maximum levels for 2009. The maximum loan limit for one-unit properties in most of the contiguous United States has been left unchanged at $417,000. Loan limits for two-, three-, and four-unit properties in 2010 also will remain at 2009 levels: $533,850, $645,300, and $801,950 respectively for homes in the contiguous U.S. Loan limits are higher in certain areas where median home prices are high and in certain statutorily designated locations, including Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Latest Property Managers Report Issued

This story appeared in Bank Digest.

The Federal Housing Finance Agency has issued its 11th Federal Property Manager’s Report to Congress. The report is required by Section 110 of the Emergency Economic Stabilization Act of 2008. The FHFA noted that preventing avoidable foreclosures through loan modifications and mortgage refinances is a top priority at the agency.

http://www.fhfa.gov/webfiles/15172/Fed.%20Prop%20Mgr%20Report.pdf

Low-Income Housing Tax Credit May Be Transferred

This story appeared in Bank Digest.

Shortly after the establishment of the conservatorships for Fannie Mae and Freddie Mac, Federal Housing Finance Agency issued a statement emphasizing the importance of all aspects of the Enterprises’ multifamily businesses to a healthy secondary market and housing affordability—including the low-income housing tax credit (LIHTC) program. However, the FHFA has informed Fannie Mae that a possible transfer of a portion of its LIHTC investments to unrelated third-party investors is consistent with FHFA’s ongoing efforts to conserve Enterprise assets and with the Enterprise’s multifamily housing mission.