Despite the current political focus on reforming the housing finance market, the Acting Director of the Federal Housing Finance Agency (FHFA) told an audience that his agency remains committed to meeting the existing goals of the government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae for which FHFA is the conservator. Edward J. DeMarco, speaking to members of the Mortgage Bankers Association at its National Mortgage Servicing Conference and Expo said that FHFA seeks to retain value in the GSE's business operations and maintain their support for the housing market.
The GSEs have been instructed to undertake several joint initiatives to strengthen their business operations, DeMarco said. The first, the Loan Quality Initiative (LQI) requires the GSEs to develop standards to improve the quality and uniformity of data collected at the front end of the mortgage process. If potential defects in the process can be detected at the beginning of the process then it is possible to improve the quality of mortgages the Enterprises purchase which will, in turn, reduce originators' repurchase risk. LQI is expected to be phased in over the remainder of this year and next.
Second, the Joint Servicing Compensation Initiative will involve the GSEs working with FHFA and the Department of Housing and Urban Development (HUD)) to consider alternative compensation for servicers of single-family mortgages. The goals of this initiative are to improve service for borrowers, reduce financial risk to servicers, provide flexibility for guarantors to manage non-performing loans, and provide continued liquidity to the "To Be Announced" mortgage securities market.
DeMarco said that meeting these goals will require taking into account several factors:
...(read more)
Source: http://www.mortgagenewsdaily.com/02232011_servicer_compensation.asp
Celebrity Foreclosures Most Expensive Homes Luxury Home Prices Mortgage Rescue Scams
No comments:
Post a Comment