Tuesday, October 29, 2013

FHFA: Repurchase Requests on Pre-Conservatorship Book Will be Wrapped up by Yearend

From:  IMFnews


By Charles Wisniowski

The Federal Housing Finance Agency declared that by yearend Fannie Mae and Freddie Mac will complete all their repurchase requests on pre-conservatorship mortgage acquisitions, ending a huge uncertainty for seller/servicers.
“It is time for us to wrap up all our open issues dealing with that period and move on,” said FHFA Acting Director Edward DeMarco. “I look forward to a speedy resolution of remaining claims in the coming months.” The two GSEs became wards of the federal government in September 2008.
Speaking before the annual convention of the Mortgage Bankers Association, DeMarco promised that, “For the future, we will continue to refine and improve upon the rep and warranty framework. In particular, I anticipate improved data systems and technological developments to contribute to faster and more reliable loan reviews that can lead to further rep and warrant relief in the future.”
For years, lenders have complained vociferously about buybacks. According to figures compiled by Inside Mortgage Finance, the GSEs took in $16 billion from buybacks during the first six months of 2013. At the same time, lenders succeeded in getting $7 billion in repurchase requests withdrawn. However, $5 billion in demands are still outstanding. For more on the story, see the Thursday edition of Inside Mortgage Finance.

Other areas of interest: Originations, Secondary/MBS, Regulatory, Fannie, Freddie, GSEs

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