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 Releases, Statements, Speeches and Testimony

 

 

FHFA Releases Fifth Report on Non-performing Loan Sales251376/13/2018 4:00:00 AMNews Release<p> <strong>Washington, D.C. </strong>– The Federal Housing Finance Agency (FHFA) today released its fifth report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises).&#160; The <em>Enterprise Non-Performing Loan Sales Report</em> includes information about NPLs sold through December 31, 2017, and reflects borrower outcomes as of December 31, 2017 on NPLs sold through June 30, 2017.&#160; The sale of NPLs reduces the number of delinquent loans in the Enterprises' portfolios and transfers credit risk to the private sector. &#160;FHFA and the Enterprises impose <a href="/Media/PublicAffairs/Pages/Non-Performing-Loan-Sale-Guidelines.aspx"> requirements</a>&#160;on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.&#160; </p><p>This fifth report shows that, through December 31, 2017, the Enterprises sold 90,921 NPLs with a total unpaid principal balance (UPB) of $17.4 billion. </p><ul><li>In 2017, 18,419 NPLs were sold, compared to 44,169 sold in 2016.</li><li>NPLs sold had an average delinquency of 3.2 years and an average current loan-to-value ratio of 95 percent.</li></ul><ul><li>NPLs in New Jersey, New York and Florida represented nearly half (46 percent) of the NPLs sold.&#160; These three states accounted for 47 percent of the Enterprises' loans that were one year or more delinquent as of December 31, 2014, prior to the start of NPL program sales in 2015. </li></ul><p>The borrower outcomes in the report are based on the 79,638 NPLs that were settled by June 30, 2017 and reported through December 31, 2017. &#160;These outcomes reflect the following&#58; </p><ul><li>Compared to a benchmark of similarly-delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark. &#160;</li><li>NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (25.7 percent foreclosure avoided versus 11.5 percent for vacant properties).</li></ul><ul><li>NPLs on vacant homes had a much higher rate of foreclosure, nearly double the foreclosure rate of borrower-occupied properties (59.5 percent foreclosure versus 24 percent for borrower occupied properties). &#160;Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.</li><li>Twenty one percent of the permanent modifications of NPLs provided arrearage and/or principal forgiveness. &#160;The average forgiveness earned per loan to date was $51,452 (with the potential to earn an average forgiveness of $73,361). </li></ul><p>FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis. </p><p>Link to <a href="/AboutUs/Reports/ReportDocuments/December2017_NPL_Sales_Report.pdf">Non-Performing Loan Sales Report</a></p><p>Link to <a href="/PolicyProgramsResearch/Policy/Pages/Non-Performing-Loan-Sales.aspx">NPL page on FHFA.gov</a></p>6/13/2018 5:00:03 PM575https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Issues Proposed Rule on Enterprise Capital254886/12/2018 4:00:00 AMNews Release<p> <strong>Washington, D.C.</strong> –<strong> </strong>The Federal Housing Finance Agency (FHFA) is seeking comments on a proposed regulation on capital requirements for Fannie Mae and Freddie Mac (the Enterprises).&#160; The proposed rule would implement a new framework for risk-based capital requirements and a revised minimum leverage capital requirement for the Enterprises.&#160; </p><p>FHFA suspended regulatory capital requirements after placing the Enterprises into conservatorships in September 2008. While the capital requirements in this rule would also be suspended while the Enterprises remain in conservatorship, FHFA believes it is appropriate to communicate the Agency's views as a financial regulator about capital adequacy and to allow market participants and all stakeholders to comment on the proposed capital requirements. &#160;</p><p>&quot;We think it is important for FHFA, as the prudential regulator for Fannie Mae and Freddie Mac, to articulate our views on capital requirements and to start a healthy discussion about the amount of capital the Enterprises should have to appropriately shield taxpayers from assistance,&quot; said FHFA Director Melvin L. Watt. &#160;&quot;In addition, feedback on this proposed rule will inform FHFA's views as conservator in making possible refinements to our assumptions about capital as we evaluate the Enterprises' business decisions during conservatorship.&quot; </p><p>The proposed rule builds on FHFA's work with the Enterprises to develop a Conservatorship Capital Framework (CCF) that is now being used to align capital guidelines for both Enterprises.&#160; Despite the Enterprises' limited ability to hold capital under the Senior Preferred Stock Purchase Agreements (PSPAs), FHFA developed this aligned risk management framework to better inform each Enterprise's business decisions while in conservatorship and both Enterprises use the CCF to make their regular business decisions.&#160; FHFA also uses the CCF in its role as conservator to assess Enterprise guarantee fees, activities, and operations and to guard against the Enterprises making competitive decisions that could adversely impact safety and soundness. &#160;</p><p>FHFA invites interested parties to submit comments on the proposed rule via <a href="/SupervisionRegulation/Rules/Pages/Enterprise-Capital-Requirements.aspx">FHFA.gov</a> within 60 days of publication in the Federal Register or via mail, FHFA, Eighth Floor, 400 Seventh Street, SW, Washington, DC&#160; 20219.&#160; FHFA will also be holding a webinar on the proposed rule on June 19 at 1&#58;30 p.m. EDT to explain the proposed rule and answer questions. &#160;Register for the webinar <a href="http&#58;//ems8.intellor.com/?do=register&amp;t=1&amp;p=806221">here</a>.</p><p><a href="/SupervisionRegulation/Rules/Pages/Enterprise-Capital-Requirements.aspx">Link to Proposed Rule</a></p><p><a href="/Media/PublicAffairs/PublicAffairsDocuments/Proposed-Rule-Enterprise-Capital-Fact-Sheet.pdf">Link to Fact Sheet&#58; Proposed Rule on Enterprise Capital</a><br></p>6/12/2018 3:00:46 PM2667https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Index Shows Mortgage Rates Increased in April175735/29/2018 4:00:00 AMNews Release<p> <strong>​Washington, D.C.</strong> - Nationally, interest rates on conventional purchase-money mortgages increased from March to April, according to several indices of new mortgage contracts.&#160;<br><br><strong>The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index</strong> was 4.51 percent for loans closed in late April, up 2 basis points from 4.49 percent in March.<br><br><strong>The average interest rate on all mortgage loans</strong> was 4.49 percent, up 7 basis points from 4.42 in March.<br><br><strong>The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less</strong> was 4.64 percent, up 10 basis points from 4.54 in March.<br><br><strong>The effective interest rate on all mortgage loans</strong> was 4.63 percent in April, up 13 basis points from 4.50 in March. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.<br><br><strong>The average loan amount </strong>for all loans was $312,900 in April, down $4,400 from $317,300&#160;in March.<br><br>FHFA will release May index values Tuesday, June 26, 2018.<br></p><p style="text-align&#58;left;">For more information, call David Roderer at (202) 649-3206. To hear recorded index information, call (202)649-3993. To find the complete contract rate series, go to&#160;<a href="/DataTools/Downloads/Pages/Monthly-Interest-Rate-Data.aspx">https&#58;//www.fhfa.gov/DataTools/Downloads/Pages/Monthly-Interest-Rate-Data.aspx</a>.</p><p style="text-align&#58;center;">.<img class="ms-rtePosition-4" alt="National Average Contract Mortage Rate for Previously Occupied Homes over one year" src="/Media/PublicAffairs/PublishingImages/Pages/Forms/EditForm/NACMR-5292018.PNG" style="margin&#58;5px;" />&#160;</p><p>Technical note&#58; The indices are based on a small monthly survey of mortgage lenders, which may not be&#160; representative.&#160; The sample is not a statistical sample but is rather a convenience sample.&#160; Survey&#160; respondents were asked to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month.&#160; Unless otherwise specified, the indices include 15-year mortgages and adjustable-rate mortgages.&#160; The indices do not include mortgages guaranteed or insured by either the Federal Housing Administration or the U.S. Department&#160;of Veterans Affairs.&#160; The indices also exclude refinancing loans and balloon loans.&#160; April 2018 values&#160;are based on 4,270 reported loans from 18 lenders, which include savings associations, mortgage&#160;companies, commercial banks, and mutual savings banks.</p>5/29/2018 1:19:57 PM988https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx