What former FHFA Director Mark Calabria foresees for housing

Depending on the outcome of the next presidential election and alignment between the heads of key agencies, an exit from government conservatorship for Fannie Mae and Freddie Mac could be closer than many think. Former Federal Housing Finance Agency Director Mark Calabria said Thursday that if the FHFA and Treasury were to pick up the effort from where he and previous Treasury Secretary Steve Mnuchin left off during the first Trump administration, it could happen in a couple years or so. He acknowledged to National Mortgage News a lot of stars would have to be aligned and logistical issues would have to be addressed including the asset-liability imbalances the government-sponsored enterprises have and the Treasury's senior preferred shares, but said there are mechanisms for handling them.

READ MORE: What former FHFA Director Mark Calabria foresees for housing

Fannie Mae to allow validation from a single source

Influential government-related mortgage investor Fannie Mae has announced that a long-planned goal to make validation of certain mortgage information available in one fell swoop is becoming a reality. Fannie will allow 12 months of asset data to verify income and employment when it becomes available for opt-in use on March 29, and for 50% of those who piloted the automated process, it produced "some level of savings" in third-party report costs. The move follows competitor Freddie Mac's expanded use of bank account data.

Spring ushers in housing market optimism among consumers

Anticipation for the spring homebuying season pushed the Fannie Mae Home Purchase Sentiment Index upwards. The HPSI grew to 72.8 in February, up 2.1 points from the month prior, marking a third month of consecutive growth. Year-over-year, the HPSI is up 14.7 points.   Optimism around home-selling conditions is the main factor buoying confidence of respondents, the government-sponsored enterprise said. The belief continues to hold among respondents that interest rates will come down over the next 12 months, though this assertion dropped by a percent from the month prior to 35%. 

Why private label mortgage securitization will have a strong 2024

About 15 months ago, observers of the private label securitization business were predicting that a bad 2022 would actually be a better year than the upcoming 12 month period. But a funny thing happened in the fourth quarter of 2022. The shift in the interest rate environment helped to drive activity because execution became an attractive option again. That has held so far during the start of 2024. Year-to-date issuance is currently about $8 billion, a Kroll Bond Rating Agency report from Feb. 23 noted.  "We have revised our expectations for [the first quarter] to close at over $20 billion," KBRA analysts Armine Karajyan, Jack Kahan and Eric Thompson said.

Warren Buffet company named in commissions suit

Plaintiffs this week added Berkshire Hathaway Energy, which owns HomeServices of America, to another commissions lawsuit targeting six leading brokerages. The case, known in Missouri federal court as Gibson v. National Association of Realtors, expands the scope of home sellers' $1.78 billion dollar victory against real estate players last October. "Berkshire Hathaway Energy has intentionally undercapitalized HomeServices," attorneys wrote in an amended complaint filed Monday. "Rather than ensure that HomeServices can return its ill-gotten home equity and/or pay the Burnett judgment, it accepts the profits of the conspiracy rather than leave the profits at the HomeServices level."

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