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Non-Performing Loan (NPL) Sale Requirements17508<p>On March 2, 2015, the Federal Housing Finance Agency (FHFA) announced enhanced non-performing loan (NPL) requirements for sales of NPLs by Freddie Mac and Fannie Mae (the Enterprises) that will reduce risk to taxpayers by transferring it to the private sector.&#160; FHFA believes that the sale of severely delinquent loans through NPL sales will reduce Enterprise losses and improve borrower and neighborhood outcomes.&#160; </p><p>The enhanced NPL sale requirements draw upon the experience of Freddie Mac’s two pilot sales of NPLs last year and this year.&#160; The loans in these two transactions have an aggregate value of approximately one billion dollars in unpaid principal balance.&#160; </p><p>The loans included in NPL sales will generally be severely delinquent – typically more than one year past due.&#160; FHFA’s goal is to achieve more favorable outcomes for the Enterprises and for borrowers by providing alternatives to foreclosure wherever possible.&#160; In addition, reporting by servicers on borrower outcomes will be required after the transactions close, which will allow the Enterprises to document whether the desired outcomes are being achieved.&#160; </p><p>Future NPL sales by the Enterprises must meet the enhanced requirements, which include the following&#58;&#160; </p><ul><li><p><strong>Bidder qualifications&#58; </strong>Bidders will be required to identify their servicing partners at the time of qualification and must complete a servicing questionnaire to demonstrate a record of successful resolution of loans through alternatives to foreclosure;</p></li></ul><ul><li><p><strong>Modification requirements&#58; </strong>The new servicer will be required to evaluate all pre-2009 borrowers (other than those whose foreclosure sale date is imminent or whose property is vacant) for the U.S. Department of the Treasury’s Making Home Affordable programs, including the Home Affordable Modification Program (HAMP).&#160; All post-January 1, 2009 borrowers (other than those with an imminent foreclosure sale date or vacant property) must be evaluated for a proprietary modification.&#160; Proprietary modifications must not include an upfront fee or require prepayment of any amount of mortgage debt, and must provide a benefit to the borrower with the potential for a sustainable modification;</p></li></ul><ul><li><p><strong>Loss mitigation waterfall requirements&#58;</strong> Servicers must apply a waterfall of resolution tactics that includes evaluating borrower eligibility for a loan modification (HAMP and/or proprietary modification), a short sale, and a deed-in-lieu of foreclosure.&#160; Foreclosure must be the last option in the waterfall.&#160; The waterfall may consider net present value to the investor;</p></li></ul><ul><li><p><strong>REO sale requirements&#58;</strong> Servicers are encouraged to sell properties that have gone through foreclosure and entered Real Estate Owned (REO) status to individuals who will occupy the property as their primary residence or to non-profits.&#160; For the first 20 days after any NPL that becomes an REO property is marketed, the property may be sold only to buyers who intend to occupy the property as their primary residence or to non-profits; </p></li></ul><ul><li><p><strong>Subsequent servicer requirements&#58;</strong>&#160; Subsequent servicers must assume the responsibilities of the initial servicer; </p></li></ul><ul><li><p><strong>Bidding transparency&#58;</strong>&#160; To facilitate transparency of the NPL sales program and encourage robust participation by all interested participants, each Enterprise will develop a process for announcing upcoming NPL sale offerings.&#160; This will include an NPL webpage on the Enterprise’s website, email distribution to small, non-profit and minority- and women-owned business (MWOB) investors, and proactive outreach to potential bidders.&#160; Additionally, each Enterprise will host training sessions for interested non-profit and MWOB investors to facilitate better understanding of the NPL sales process.&#160; The Enterprises will also offer small pools of NPLs, where feasible; </p></li></ul><ul><li><p><strong>Reporting requirements&#58;</strong>&#160; NPL buyers and servicers, including subsequent servicers, are required to report loan resolution results and borrower outcomes to the Enterprises for four years after the NPL sale.&#160; These reports will help inform whether to make future changes to NPL sales requirements and determine whether an NPL buyer and NPL servicer continue to be eligible for future sales based on pool level borrower outcomes, adjusted for subsequent market events.&#160; Consistent with applicable law, FHFA and/or the Enterprises will provide public reports on aggregate borrower outcomes at the pool level.&#160; </p></li></ul><p> <a href="/Media/PublicAffairs/Pages/FHFA-Enhances-Requirements-for-Freddie-Mac-and-Fannie-Mae-Sales-of-Non-Performing-Loans.aspx">Related News Release</a></p>3/2/2015 5:00:12 PM3372http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Detroit, Michigan NSI Fact Sheet - Update15245<p>​<strong>​​Summary</strong></p><p>The Neighborhood Stabilization Initiative (NSI) was jointly developed by the Federal Housing Finance Agency (FHFA), and Fannie Mae and Freddie Mac.&#160; Announced in May 2014, it is a pilot program designed to stabilize neighborhoods that have been hardest hit by the housing downturn.&#160;<span style="line-height&#58;22px;">The program promotes strategies to <strong><em>help delinquent borrowers avoid foreclosure,</em></strong> and strategies for more efficient <strong><em>disposition of foreclosed properties</em></strong>.&#160; A partnership with the National Community Stabilization Trust is leveraging ties to community organizations and local non-profits to meet these two goals.&#160; Initial piloting of the program has occurred within the city limits of Detroit, Michigan.</span></p><p><strong>Background</strong></p><p>The number of REO properties owned by Fannie Mae and Freddie Mac is declining and approaching pre-crisis levels in some states. At the national level, the REO inventory of Fannie Mae and Freddie Mac&#160;is declining from its 3Q10 peak of nearly 250,000 properties to 132,000 as of 2Q14, as dispositions outpace acquisitions. However, in some areas of the country REO inventory continues to increase&#160;or remains near historic highs. Some particular markets have large concentrations of distressed and low-value REO properties as well as large volumes of loans that have been delinquent for one to two years that are likely to become REO. </p><p>Given the unique challenges presented by these markets—high vacancy rates, weak for-sale markets, steep home-price declines—Fannie Mae and Freddie Mac are partnering with the National Community Stabilization Trust (NCST), a national non-profit organization experienced in stabilization efforts for distressed communities. Working together, they will leverage their ties to “boots on the ground” community organizations and local non-profits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.</p><p><strong>NSI PILOT PROGRAM ELEMENTS</strong> </p><div><p><strong>Pre-Foreclosure Strategies</strong> </p><p>The NSI program offers Detroit borrowers who are delinquent on their mortgages the opportunity to receive a loan modification that will reduce their monthly payments, help them avoid foreclosure and stay in their homes.<br></p></div><ul><li><strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;">MyCity Modification</strong><span style="line-height&#58;22px;"> - The new MyCity Modification has been added to the traditional loan modification programs (HAMP, Standard Modification, and Streamlined Modification) being offered by Fannie Mae and Freddie Mac in the city limits of Detroit.</span></li><ul><li><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​MyCity Modification allows for greater reduction in monthly mortgage payments.</span></li><li><p>Delinquent borrowers will be evaluated for all Fannie Mae and Freddie Mac loan modification programs and will be offered the modification that results in the <strong><em>lowest monthly payments</em></strong> for them, if eligible.</p></li><li><p>As of September 1, 2014, MyCity Modification is a mandatory offering of Fannie Mae and Freddie Mac.</p></li><li><span style="line-height&#58;22px;">On average, MyCity Modification participants are seeing their monthly principal and interest payments cut in half.</span></li></ul></ul><p>The NSI program also includes a strategy that allows severely delinquent, low-balance loans to be transferred to a non-profit entity for resolution prior to foreclosure.&#160; Solutions offered by the non-profit may include but not be limited to, a short sale or a deed-in-lieu of foreclosure, or a loan modification.<br></p><p><strong>Post-Foreclosure Strategies </strong><br>The NSI program includes three strategies for disposing of foreclosed properties.&#160; These strategies are designed to increase home retention and decrease the number of vacant houses. </p><ul><li><strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;">​Quick Look</strong><span style="line-height&#58;22px;">&#160;-&#160;Through the Quick Look program, non-profit organizations are given an exclusive 7-day opportunity, immediately after foreclosure, to purchase properties from Fannie Mae and Freddie Mac.&#160; Participating nonprofits receive notification and property information, so that they can evaluate and acquire properties prior to any public sales listing.&#160;</span></li><ul><li><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​​Partnerships with 8 local non-profits have been established.</span></li><li><p>Approximately 33 percent of all properties presented to non-profits since July have been purchased through the Quick Look program.</p></li></ul><li><span style="line-height&#58;22px;">​</span><span style="line-height&#58;22px;"><strong>Auction Sales</strong>&#160;- Occupied properties not acquired by a non-profit through the Quick Look period will be sold at auction.</span></li><ul><li><p>Investors who purchase these properties might negotiate new rental terms with the occupant.</p></li><li><p>Occupied properties that are not sold at auction will go through the normal process of real-estate owned (REO) disposition, which includes protection of the property and preparation for sale, while the redemption period passes.</p></li><li><p>Auctions have already commenced in Detroit and early results are encouraging.</p></li></ul></ul><p><strong>Enhanced First Look</strong> - Vacant properties that are not acquired by non-profits through the Quick Look program will go through the normal process of REO disposition, which includes preservation and protection of the property while the redemption period passes, and the Enhanced First Look program.</p><ul><ul><li><p>The Enhanced First Look program segments properties based on their value and condition.</p></li><li><p>Non-profit organizations are given incentives through a range of sales concessions to acquire these properties.</p></li><li><p>As of September 12, non-profits have agreed to purchase almost 70 percent of all properties presented to them through the Enhanced First Look program.​​​​</p></li></ul></ul>2/12/2015 11:10:54 PM901http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA's Update on Private Label Securities Actions11066<p>​​​​In 2011, the Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of private-label securities (PLS) to Fannie Mae and Freddie Mac.&#160;​ Below is a list of the cases, with amounts of any settlements reached in 2013 and 2014.&#160; Settlement amounts result from various factors, including statutory requirements, number of securities, unique circumstances of each matter and litigation risks. </p><table width="100%" class="ms-rteTable-6" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-6" style="text-align&#58;center;"><td class="ms-rteTableEvenCol-6" colspan="2"><strong>​PLS Litigation Settlements ​</strong> </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​1. General Electric Company </td><td width="25%" class="ms-rteTableOddCol-6">$6.25 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">2. CitiGroup Inc. </td><td class="ms-rteTableOddCol-6">​$250 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​3. UBS Americas, Inc. (Union Bank of Switzerland) </td><td class="ms-rteTableOddCol-6">​$885 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">​4. J.P. Morgan Chase &amp; Co. </td><td class="ms-rteTableOddCol-6">​$4 billion </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​5. Deutsche Bank AG </td><td class="ms-rteTableOddCol-6">$1.925 billion </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">6. Ally Financial, Inc. </td><td class="ms-rteTableOddCol-6">$475 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">7. Morgan Stanley </td><td class="ms-rteTableOddCol-6">$1.25 billion </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">8. SG Americas (Societe Generale) </td><td class="ms-rteTableOddCol-6">$122 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">9. Credit Suisse Holdings (USA) Inc. </td><td class="ms-rteTableOddCol-6" rowspan="1">$885 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">10. Bank of America Corp. <br>11. Merrill Lynch &amp; Co. <br>12. Countrywide Financial Corporation </td><td class="ms-rteTableOddCol-6" rowspan="1"><br>$5.83 billion </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​13. Barclays Bank PLC </td><td class="ms-rteTableOddCol-6" rowspan="1">$280 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​14. First Horizon National Corp.</td><td class="ms-rteTableOddCol-6" rowspan="1">​$110 million</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​15. RBS Securities, Inc.&#160;<span style="line-height&#58;14px;background-color&#58;#c0e4ff;font-variant&#58;normal;font-style&#58;normal;">(in Ally action)</span></td><td class="ms-rteTableOddCol-6" rowspan="1">​​$99.5 million</td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1"><p>​16.&#160;Goldman Sachs &amp; Co.&#160; </p></td><td class="ms-rteTableOddCol-6" rowspan="1">$1.2 billion</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​17. HSBC North America Holdings, Inc.&#160;(Hong Kong Shanghai Banking Corp.)</td><td class="ms-rteTableOddCol-6" rowspan="1">​​$550 million</td></tr><p>&#160; <tr><td class="ms-rteTableOddCol-6" rowspan="1"><p>&#160;</p></td></tr></p></tbody></table><p>&#160;</p><table width="100%" class="ms-rteTable-6 " cellspacing="0" style="height&#58;57px;"><tbody><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2" style="text-align&#58;center;width&#58;788px;height&#58;15px;">​<strong>​​Non-Litigation PLS Settlements​</strong></td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" style="width&#58;591px;">​Wells Fargo Bank, N.A.</td><td class="ms-rteTableOddCol-6" style="width&#58;197px;">​$335.23 million</td></tr></tbody></table><p>&#160;</p><table width="100%" class="ms-rteTable-6" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2" style="text-align&#58;center;width&#58;50%;">​<strong>Remaining PLS Cases ​</strong> ​ ​</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" colspan="2">​<em>Southern District of New York Cases</em>&#58; ​</td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2"><p>Nomura Holding America, Inc.​</p></td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" colspan="2"><em>​​District of Connecticut Case&#58;</em></td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2">The Royal Bank of Scotland Group, PLC&#160; ​</td></tr></tbody></table><p>​​&#160;​</p>9/15/2014 3:13:34 PM8465http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Detroit, Michigan NSI10734<h2> ​​​​Summary</h2><p>The Neighborhood Stabilization Initiative (the “NSI”) was jointly developed by the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac to stabilize neighborhoods that have been hardest hit by the housing crisis.&#160; The program includes two distinct pre-foreclosure strategies and three distinct post-foreclosure strategies, all of which are intended to assist homeowners who are behind on their mortgages, help neighborhoods recover, and reduce the inventory of real estate owned (REO) properties held by Fannie Mae and Freddie Mac.&#160; Initial piloting of the program will occur within the city limits of Detroit, Michigan and will begin in the coming weeks.</p><h2> Background</h2><p>The number of REO properties owned by Fannie Mae and Freddie Mac is declining and approaching pre-crisis levels in some states.&#160; At the national level, the REO inventory of Fannie Mae and Freddie Mac is declining from its 3Q10 peak of nearly 250,000 properties to 150,000 in 4Q13, as dispositions outpace acquisitions.&#160; However, in some areas of the country REO inventory continues to increase or remains near historic highs.&#160; Some particular markets have large concentrations of distressed and low-value REO properties as well as large volumes of loans that have been delinquent for one to two years that are likely to become REO.&#160; </p><p>Given the unique challenges presented by these markets—high vacancy rates, weak for-sale markets, steep home-price declines—Fannie Mae and Freddie Mac are partnering with the National Community Stabilization Trust (NCST), a national non-profit organization experienced in stabilization efforts for distressed communities.&#160; Working together, they will leverage their ties to “boots on the ground” community organizations and local non-profits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.&#160; </p><h2> NSI Program Goals</h2><p>The NSI program has three primary goals&#58;</p><ol><li><p>To increase the number of families able to stay in their current homes through loan modifications;</p></li><li><p>To effectively match distressed properties with responsible non-profits for property renovation and resale; and</p></li><li><p>To assist distressed communities in executing their building demolition plans.</p></li></ol><p>Goals one and two should decrease vacant houses by increasing the number of properties occupied by owners or renters.&#160; Non-profits may renovate properties for sale to owner-occupants, lease back to current occupants when possible, or lease to other qualified renters.&#160; For pre-foreclosure properties, the program will offer incentives to current borrowers and nonprofits, maximize payment relief and increase chances for current or future occupants to stay in the home.&#160; When such efforts are not feasible, the delinquent notes would be conveyed to NCST for resolution.&#160; For post-foreclosure properties, the program will consider an array of neighborhood stabilization options such as donation, demolition, financial incentive mechanisms, repairs, and auctions.&#160; </p><h2> NSI Program Elements</h2><p> <span style="text-decoration&#58;underline;">Pre-Foreclosure Strategies</span>&#58;</p><ul><li><p style="margin&#58;0px;padding&#58;0px;"> <strong>Distressed Region Modification</strong> – Borrowers will be evaluated for a new loan modification that provides a greater reduction in monthly principal and interest payments than is available in the traditional loan modification programs.</p>​</li><li><p style="margin&#58;0px;padding&#58;0px;"> <strong>Non-Performing Loan Sale/Donation</strong> – Severely delinquent low-balance loans secured by distressed properties may be transferred to a non-profit entity for resolution prior to foreclosure.</p></li><ul><li><p style="margin&#58;0px;padding&#58;0px;">Non-profits will work with seriously delinquent owners to determine the most feasible outcome for the household and the property.</p></li><li><p style="margin&#58;0px;padding&#58;0px;">Solutions may include new affordable payment terms, a short sale, a deed-in-lieu of foreclosure, or foreclosure and subsequent repair or demolition, as appropriate.</p></li></ul></ul><p> <span style="text-decoration&#58;underline;">Post-Foreclosure Strategies</span>&#58;</p><ul><li><p><strong>​​NCST Quick Look period</strong> – Non-profits will have an opportunity to acquire certain REO properties (occupied or vacant) through purchase or receive properties as a donation prior to the Enterprises initiating their standard disposition processes.&#160; NCST will assist the Enterprises with these sales and donations.</p></li><li><p> <strong>Post-Quick Look</strong> – Occupied properties not sold or donated to non-profits during the Quick Look period will be sold at auction; vacant properties and those that do not sell via auction will be prepared for normal REO sales, which starts with the First Look process, a 20-day period when properties are offered only to owner-occupants, nonprofits, and governmental entities.</p></li><li><p> <strong>Enhanced First Look Process</strong> – Properties will be offered to non-profits through NCST several days prior to being marketed through Multiple Listing Services (MLS).&#160; For low-value REO properties, Fannie Mae and Freddie Mac will work with NCST and local community organization to determine the optimum disposition of individual properties, which may result in donation, donation/demolition, or repair/rehabilitation.&#160; Discounts and incentives may be offered to non-profits depending on characteristics such as property condition, value, and location.</p></li></ul>2/12/2015 11:09:37 PM4102http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Home Affordable Refinance Program (HARP)11106<h2>Program Overview </h2><p>The Federal Housing Finance Agency (FHFA) and the Department of the Treasury introduced HARP in early 2009 as part of the Obama Administration’s Making Home Affordable program. HARP provides borrowers, who may not otherwise qualify for refinancing because of declining home values or reduced access to mortgage insurance, the ability to refinance their mortgages into a lower interest rate and/or more stable mortgage product. </p><h2>Homeowners Helped Since Program Inception </h2><p>As of August 31, 2011, nearly 894,000 borrowers had refinanced through HARP. </p><h2>HARP is only one refinancing option </h2><p>HARP is only one of several refinancing options available to homeowners. Since April 2009 when HARP began, Fannie Mae and Freddie Mac have helped approximately nine million families refinance into a lower cost or more sustainable mortgage product. HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefits. <br><img alt="FMandFRM_Refinance_Monthly-Through-Aug-2011.png" src="/Media/PublicAffairs/PublishingImages/Pages/Home-Affordable-Refinance-Program-(HARP)/FMandFRM_Refinance_Monthly-Through-Aug-2011.png" style="margin&#58;5px;width&#58;768px;" /></p><h2>Borrower Eligibility </h2><ul><li><p>The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. <br>Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to&#58; <br><a href="http&#58;//www.fanniemae.com/loanlookup/">http&#58;//www.FannieMae.com/loanlookup/</a> &#160;or calling 800-7FANNIE (8 am to 8 pm ET) <br><a href="https&#58;//ww3.freddiemac.com/corporate/">https&#58;//ww3.FreddieMac.com/corporate/</a> or 800-FREDDIE (8 am to 8 pm ET)</p></li><li><p>The program will continue to be available for loans with LTVs above 80 percent. </p></li><li><p>Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months. </p></li><li><p>Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances. </p></li></ul><h2>Other Resources </h2><p><a href="http&#58;//www.makinghomeaffordable.gov/">www.MakingHomeAffordable.gov</a> &#160;or call 1-888-995-HOPE (4673) <br><a href="http&#58;//www.knowyouroptions.com/">www.KnowYourOptions.com</a> &#160;or <a href="http&#58;//www.fanniemae.com/homeowners">www.FannieMae.com/homeowners</a> &#160;<br><a href="http&#58;//www.freddiemac.com/avoidforeclosure">www.FreddieMac.com/avoidforeclosure</a> &#160;<br> </p>5/20/2014 7:46:32 AM963http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Director James Lockhart Outlines Progress and Challenges on Agency’s First Anniversary10842<h1 style="text-align&#58;center;">FHFA FACT SHEET</h1><h2>&#160;</h2><h2>REPORTS</h2><p>The Housing and Economic Recovery Act of 2008 (HERA) directed the Federal Housing Finance Agency (FHFA) to conduct studies on topics integral to the regulation of the housing GSEs. The following is a summary&#58;</p><p><strong>The Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2007 and 2008 </strong>– Section 1601 of HERA required FHFA to conduct an ongoing study of the guarantee fees charged by Fannie Mae and Freddie Mac and to submit annual reports to Congress that analyze those fees and the criteria the Enterprises used to derive them. FHFA is releasing today the first such report, which covers guarantee fees charged by the Enterprises in 2007 and 2008. The report focuses on guarantee fees for conventional single-family mortgages—loans that are not insured or guaranteed by the federal government and that finance properties with four or fewer residential units. As required by HERA, the report analyzes how guarantee fees for those mortgages varied by product type, risk classifications, and seller delivery volume. Findings include&#58; 1) Cross-subsidization in single-family guarantee fees charged by Fannie Mae and Freddie Mac was evident in 2007 and 2008 across product types, credit score categories, and loan-to-value (LTV) ratio categories; 2) the average estimated cost of single-family mortgages guaranteed in 2007 was significantly higher than the average estimated guarantee fee charged by the Enterprises, reflecting the general market underpricing of mortgage credit risk in that year; and 3) the Enterprises responded to deteriorating housing market conditions with guarantee fee pricing increases beginning in March 2008 and, despite those increases, gained market share as private competitors for single-family mortgage credit risk retreated from the market.</p><p><a href="/AboutUs/Reports/Pages/Fannie-Mae-and-Freddie-Mac-Single-Family-Guarantee-Fees-in-2007-and-2008.aspx">Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2007 and 2008</a></p><p><strong>The Federal Home Loan Bank (FHLBank) Securitization Study</strong> – As required under Section 1215 of HERA, this study analyzes the benefits and risks of FHLBank securitization, the potential impact of securitization upon liquidity in the mortgage markets, the ability of the FHLBanks to manage the attendant risks, and the likely effects of such a program on the existing activities, joint and several liability, and cooperative structure of the FHLBank System. In conducting the study, the FHFA consulted with the FHLBanks, the FHLBanks’ fiscal agent (the Office of Finance), representatives of the mortgage lending industry, practitioners in the structured finance field, and other experts. The study noted that considerable uncertainty surrounded the future of mortgage securitization in the United States at this time, including issues related to the future regulation of the mortgage and financial markets, which made it difficult to assess the merits of allowing the FHLBanks to securitize mortgages. The report recommends that FHLBanks not be allowed to securitize mortgages at this time but instead continue to use programs such as MPF Xtra to serve as a conduit for mortgage purchases from their members to a third party that can securitize mortgages. It concluded that while FHLBank securitization could enable the FHLBanks to purchase a larger volume of conforming mortgages from members and increase the availability of mortgage credit, FHLBank securitization of mortgages would best be considered after government agencies have developed their recommendations concerning the future of the mortgage-related government sponsored enterprises based on market conditions that exist when that effort is completed.</p><p><a href="/AboutUs/Reports/Pages/Securitization-of-Mortgage-Loans-by-the-Federal-Home-Loan-Bank-System.aspx">Securitization of Mortgage Loans by the Federal Home Loan Bank System</a></p><p><strong>The Study of FHLBank Advances and Interagency Guidance on Nontraditional Mortgages</strong> – Section 1217 of HERA requires the Director to conduct a study on the extent to which mortgage loans and securities used as collateral for FHLBank advances are consistent with the guidance promulgated by the federal banking agencies on nontraditional mortgage products. The Director is also required to consider any additional actions that may be necessary to ensure that the FHLBanks do not support mortgage loans with predatory characteristics, and to submit a report to Congress on the results of the study. Section 1217 also requires that the public have an opportunity to comment on any recommendations for further action.</p><p>Today, the Director delivered to Congress the study required by Section 1217 of HERA in the form of a Federal Register Notice that FHFA is concurrently sending for publication in the Federal Register. After considering comments received during a 60-day comment period, the Director will make any appropriate revisions and submit an updated version of the study to the Congress. The study identifies several advisory bulletins issued by the Federal Housing Finance Board, a predecessor agency to the FHFA, between 2005 and 2008 that provided guidance regarding nontraditional and subprime mortgage loans and anti-predatory lending, and notes that each FHLBank has adopted policies, procedures, and practices requiring that mortgage loans and securities used as collateral be consistent with the interagency guidance, as well as policies addressing anti-predatory lending. The study further notes that the FHFA assesses each FHLBank’s compliance with this guidance, as well as the adequacy of its policies, through the supervisory process and will rely on that process in considering whether to adopt additional guidance governing the FHLBanks’ acceptance of these types of collateral.</p><p><strong>The Report on Federal Home Loan Bank Collateral Securing Advances</strong> – Section 1212 of HERA requires that the FHFA provide an annual report to Congress on the collateral pledged to the FHLBanks to secure advances made to their members and housing associates, including an analysis by type and FHLBank district. The report we are releasing today is the second that we are providing to Congress under the requirements of Section 1212. It is based on our 2009 annual collateral data survey, which collected information as of December 31, 2008. It is an update of the initial report that we provided to Congress on January 26, 2009, as of December 31, 2007. The annual collateral data survey provided the data cited in the HERA Section 1217 report. The Section 1212 report complements the Section 1217 report by providing additional background information and data on collateral securing advances at the FHLBanks.</p><p>The Report on FHLBank Collateral Securing Advances discusses the methods by which the FHLBanks accept collateral securing advances and the extent to which the FHLBanks use each method. It also discusses the composition of collateral – 60 percent of collateral is whole residential mortgage loans – and collateral-to-advances coverage ratios. The average collateral coverage ratio across the FHLBank System for members of all asset sizes was 160 percent at the end of 2008, an eight percentage point increase from the end of 2007. The report also provides information on the collateral securing advances over the past five years in the categories of whole residential mortgage loans, mortgage-backed securities, other securities, other real estate related collateral (ORERC), and community financial institution (CFI) collateral, and provides detailed breakdowns of ORERC and CFI collateral by type and amount. The report covers topics of timely interest such as collateral coverage of advances to insurance companies and credit unions and provides additional information on subprime and nontraditional residential mortgage loans accepted as collateral for advances.</p><p><a href="/AboutUs/Reports/Pages/Report-on-Federal-Home-Loan-Bank-Collateral-for-Advances-and-Interagency-Guidance-on-Nontraditional-Mortgage-Products-(July.aspx">Report on FHLBank Collateral for Advances and Interagency Guidance on Nontraditional Mortgage Products</a></p><p>&#160;</p><h2>RULES AND NOTICES</h2><p>(Hyperlinks for each document provided below. All can also be found on page at&#58; <a href="/SupervisionRegulation/RegulationFederalRegister">www.fhfa.gov/SupervisionRegulation/RegulationFederalRegister</a>.)</p><ol><li><p><strong>2009 Enterprise Transition Affordable Housing Goals—Final Rule</strong> (12 CFR Part 1282)<br><br>Summary&#58; After analyzing current market conditions and receiving public comment, the final rule adjusts downward the overall housing goals for the Enterprises for 2009. Three home purchase subgoal levels remain as proposed, while the dollar-based special affordable multifamily housing subgoal levels are adjusted upward. The final rule also permits loans owned or guaranteed by an Enterprise that are modified in accordance with the Administration’s Making Home Affordable Program announced on March 4, 2009, to be treated as mortgage purchases and count for purposes of the housing goals. In addition, the final rule excludes purchases of jumbo conforming loans from counting towards the 2009 housing goals.<br><br><a href="/SupervisionRegulation/Rules/Pages/2009-Enterprise-Transition-Affordable-Housing-Goals-Mortgage-Market-Assessment-Final-Rule.aspx">Link to Final Rule</a></p></li><li><p><strong>Duty to Serve Underserved Markets for Enterprises—Advance Notice of Proposed Rulemaking</strong> (12 CFR Part 1282)<br><br>Summary&#58; FHFA is required, beginning in 2010, to establish a manner for evaluating the Enterprises’ compliance with the new statutory duty to serve underserved markets. That duty includes service to three underserved markets—manufactured housing, affordable housing preservation and rural areas. To assist FHFA in rulemaking to implement this duty, FHFA seeks comments through an Advance Notice of Proposed Rulemaking on the characteristics and types of Enterprise transactions and activities that should be considered and how such transactions and activities should be evaluated and rated. This would lead to a proposed rulemaking for further public input.<br><br><a href="/SupervisionRegulation/Rules/Pages/Duty-to-Serve-Underserved-Markets-for-Enterprises.aspx">Link to Advance Notice</a></p></li><li><p><strong>Affordable Housing Program Amendments&#58; FHLBank Mortgage Refinancing Authority—Interim Final Rule with Request for Comments</strong> (12 CFR Part 1291)<br><br>Summary&#58; FHFA is issuing and seeking comment on a second interim final rule relating to authorization for the Banks to provide the existing Affordable Housing Program (AHP) subsidy through their members to assist in the refinancing of low or moderate income households’ mortgages under certain federal, state and local programs for targeted refinancing. The first interim final rule authorized such subsidies to those qualifying under the Hope for Homeowners Program. The new rule expands the program to other government eligible programs, including the Administration’s Making Home Affordable Refinancing program. The authority was provided in the Housing and Economic Recovery Act on a temporary basis until July 30, 2010. While the rule is effective immediately, FHFA determined that it would seek public comments on the rule.<br><br><a href="/SupervisionRegulation/Rules/Pages/Affordable-Housing-Program-Amendments-FHLBank-Mortgage-Refinancing-Authority-Interim-Final-Rule.aspx">Link to Interim Final Rule</a></p></li><li><p><strong>FHLBank Collateral for Advances and Interagency Guidance on Nontraditional Mortgage Products—Notice of Study and Recommendations and Request for Comments</strong> (2009-N-10&#58; HERA Section 1217-Study)<br><br>Summary&#58; The Housing and Economic Recovery Act of 2008 (HERA) requires the Director to conduct a study, which must be submitted to Congress, on the extent to which loans and securities used as collateral to support Federal Home Loan Bank (Bank) advances are consistent with the federal financial institution regulatory agencies’ interagency guidance on nontraditional mortgage products and statement on subprime mortgage lending. Further, the study must consider and recommend any additional regulations, guidance, advisory bulletins, or other administrative actions necessary to ensure that the Banks are not supporting loans with predatory characteristics. This notice is intended to inform the public about the study and provide the public with the requisite opportunity to comment.<br><br><a href="/SupervisionRegulation/Rules/Pages/FHLBank-Collateral-for-Advances-and-Interagency-Guidance-on-Nontraditional-Mortgage-Products-Notice-of-Study-and-Re.aspx">Link to Notice</a></p></li><li><p><strong>Board of Directors of FHLBank System Office of Finance—NPR with Request for Comments</strong> (12 CFR Part 1273 and 12 CFR Part 1274)<br><br>Summary&#58; The Office of Finance is governed by a board of directors, the composition and functions of which are determined by FHFA’s regulations. The FHFA’s experience with the Federal Home Loan Bank System and with the combined financial reports prepared for the System by the Office of Finance, during the recent period of market stress suggests that the Office of Finance and the System could benefit from a reconstituted and strengthened board. This proposed regulation is intended to achieve that by increasing the size of the board and having it comprised of the twelve Bank presidents and three-to-five independent directors, creating an audit committee, providing for the creation of other committees and setting a method for electing independent directors along with setting qualification for these directors. Under the proposed rule, the audit committee would be charged with oversight of greater consistency in accounting policies and procedures by the Banks; this will enhance the value of the combined financial reports of the Office of Finance.<br><br><a href="/SupervisionRegulation/Rules/Pages/Board-of-Directors-of-Federal-Home-Loan-Bank-System-Office-of-Finance-Notice.aspx">Link to Proposed Rule</a></p></li><li><p><strong>Record Retention—NPR with Request for Comments</strong> (12 CFR Part 1235)<br><br>Summary&#58; The proposed regulation would require the regulated entities and the Federal Home Loan Banks’ Office of Finance to establish and maintain a record retention program to ensure that records are readily accessible for examination and other supervisory purposes. The proposed regulation is based on OFHEO’s Record Retention regulation and a provision of the FHFB’s Data Availability and Reporting regulation. This proposed regulation seeks to assure strong record maintenance and availability for the security of the regulated entities and to facilitate effective supervision.<br><br><a href="/SupervisionRegulation/Rules/Pages/Record-Retention-74-FR-38559.aspx">Link to Proposed Rule</a></p></li><li><p><strong>Capital Classifications and Critical Capital Levels for the FHLBanks—Final Rule</strong> (Note-Title of the CFR Part is&#58; Capital Classifications and Prompt Corrective Action) (12 CFR Part 1229)<br><br>Summary&#58; The final regulation makes final an interim final rule published on January 30, 2009 to define the critical capital levels for the Federal Home Loan Banks, establishes the criteria for capital classifications, and implements FHFA’s prompt correction action authority over the Banks. While certain changes were made to the interim final rule, FHFA determined, after seeking comment on a proposal to adopt or add a “well capitalized” classification to the capital classification, not to undertake such action at this time.<br><br><a href="/SupervisionRegulation/Rules/Pages/Capital-Classifications-and-Critical-Capital-Levels-for-the-Federal-Home-Loan-Banks-Prompt-Corrective-Action.aspx">Link to Final Rule</a></p></li></ol>Fact sheet for news release "FHFA Director James Lockhart Outlines Progress and Challenges on Agency’s First Anniversary."5/30/2014 1:11:31 AM71http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Conservatorship of Fannie Mae and Freddie Mac10721<h2>News Releases/Statements</h2><table width="100%" class="ms-rteTable-0" bordercolor="#ffffff" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/07/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"><a href="/Media/PublicAffairs/Pages/Statement-of-FHFA-Director-James-B--Lockhart-at-News-Conference-Annnouncing-Conservatorship-of-Fannie-Mae-and-Freddie-Mac.aspx">Statement of FHFA Director James B. Lockhart at News Conference Announcing Conservatorship of Fannie Mae and Freddie Mac</a></span></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/07/2008 </span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0">​<a href="/Media/PublicAffairs/Pages/Statement-of-FHFA-Regarding-Contracts-of-Enterprises-in-Conservatorship.aspx">Statement of Federal Housing Finance Agency Regarding Contracts of Enterprises in Conservatorship</a></span></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/16/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"><a href="http&#58;//www.gpo.gov/fdsys/pkg/FR-2008-09-16/html/E8-21650.htm">Interim Final Rule on Golden Parachute Payments</a></span></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/12/2008 </span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"> <a href="/Media/PublicAffairs/Pages/FHFA-Statement-of-Support-for-Multifamily-Housing-Finance-Activities-of-the-Enterprises-While-in-Conservatorship.aspx">FHFA Statement of Support for Multifamily Housing Finance Activities of the Enterprises While in Conservatorship</a></span></td></tr></tbody></table> <br> <h2>Links to documents on U.S. Department of Treasury Web site&#58;</h2><p> <a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/fhfa_statement_090708hp1128.pdf">FHFA Director Lockhart Remarks on Housing GSE Actions</a> – 9/7/08<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/fhfa_consrv_faq_090708hp1128.pdf">Fact Sheet&#58; FHFA Conservatorship</a> – 9/7/08<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/pspa_factsheet_090708%20hp1128.pdf">Fact Sheet&#58; Treasury Preferred Stock Purchase Agreement</a> – 9/7/08<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/mbs_factsheet_090708hp1128.pdf">Fact Sheet&#58; Treasury MBS Purchase Program</a> – 9/7/08<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/gsecf_factsheet_090708.pdf">Fact Sheet&#58; Treasury GSE Credit Facility</a> – 9/7/08<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/warrantfrec.pdf">Freddie Mac Warrant to Purchase Common Stock</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/certificatefreb.pdf">Freddie Mac Certificate</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/seniorpreferredstockpurchaseagreementfrea.pdf">Freddie Mac Senior Preferred Stock Purchase Agreement</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf">Fannie Mae Warrant to Purchase Common Stock</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/certificatefnm2.pdf">Fannie Mae Certificate</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Documents/seniorpreferredstockpurchaseagreementfnm1.pdf">Fannie Mae Senior Preferred Stock Purchase Agreement</a><br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Pages/hp1079.aspx">Paulson Announces GSE Initiatives</a> – 7/13/2008<br><a href="http&#58;//www.treasury.gov/press-center/press-releases/Pages/hp1078.aspx">Paulson Statement on Fannie Mae and Freddie Mac</a> – 7/11/2008</p> <br> <h2>Testimony</h2><table class="ms-rteTable-0" cellspacing="0" style="width&#58;100%;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/23/2008 </span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0">​<a href="/Media/PublicAffairs/Pages/Statement-of-James-B-Lockhart-III-Director-FHFA-Before-The-US-Senate-Committee-on-Banking-Housing-and-Urban-Affairs.aspx">Corrected Statement of the Honorable James B. Lockhart III, Director, Federal Housing Finance Agency Before the Senate Committee on Banking, Housing, and Urban Affairs on the Appointment of FHFA as Conservator for Fannie Mae and Freddie Mac</a></span></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/25/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"><a href="/Media/PublicAffairs/Pages/Statement-of-James-B-Lockhart-III-Director-FHFA-Before-the-US-House-Committee-on-Financial-Services.aspx">​Corrected Statement of the Honorable James B. Lockhart III, Director, Federal Housing Finance Agency Before the House Committee on Financial Services on the Conservatorship of Fannie Mae and Freddie Mac</a></span></td></tr></tbody></table> <br> <h2>Miscellaneous</h2><table width="100%" class="ms-rteTable-0" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">7/13/2008 </span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0">​<a href="#%23%23">Statement of OFHEO Director James B. Lockhart</a><br>Re&#58; Support of Secretary Paulson, the Administration, and the Federal Reserve in their efforts to stabilize the housing finance system</span></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/07/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"> <a href="/Media/PublicAffairs/Pages/Fact-Sheet-Questions-and-Answers-on-Conservatorship.aspx">Fact Sheet&#58; Questions and Answers on Conservatorship</a></span></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/26/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0">​<a href="/Conservatorship/Pages/Senior-Preferred-Stock-Purchase-Agreements.aspx">Amended and Restated Fannie Mae Senior Preferred Stock Purchase Agreement</a></span></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/26/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"> <a href="/Conservatorship/Pages/Senior-Preferred-Stock-Purchase-Agreements.aspx">​Amended and Restated Freddie Mac Senior Preferred Stock Purchase Agreement</a></span></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;65px;"> <span class="ms-rteThemeForeColor-2-0">9/26/2008</span></td><td class="ms-rteTableOddCol-0"> <span class="ms-rteThemeForeColor-2-0"> <a href="#%23%23">Paulson Letter</a><br>Re&#58; Amended and Restated Senior Preferred Stock Purchase Agreements (&quot;the Agreements&quot;) between the United States Department of the Treasury (&quot;Treasury&quot;), and the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation</span></td></tr></tbody></table>FHFA has compiled a list of links pertaining to the conservatorship of Fannie Mae and Freddie Mac.6/4/2014 11:18:30 PM675http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx

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