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How much room does the FHFA have today to make marginal changes to underwriting standards? And if the Biden administration wanted to initiate changes, what mechanisms would they have?
— Kevin Erdmann (@KAErdmann) May 9, 2024
Agreed, conservatorships have completely corrupted agency and undermined safety and soundness mission
— Mark Calabria (@MarkCalabria) May 9, 2024
Calabria on X ...
What does OCC stand for?
The Office of the Comptroller of the Currency (OCC) is an independent bureau of the U.S. Department of the Treasury. The OCC charters, regulates, and supervises all national banks, federal savings associations, and federal branches and agencies of foreign banks.
Has Congress ever eliminated an agency outside of a crisis?
— Andrew Ackerman (@amacker) May 9, 2024
What about also giving the Fed's supervision responsibilities to the OCC? I get that one supervises holding companies, the other (federally chartered) banks. But it seems duplicative. Thoughts?
— Aaron (@Appellor_Aaron) May 9, 2024
Lol. Fair enuf.
— Andrew Ackerman (@amacker) May 9, 2024
Fannie Mae Announces Winner of its Latest Non-Performing Loan Sale
May 9, 2024
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the results
of its twenty-fourth non-performing loan sale transaction. The deal, announced on
April 9, 2024, included the sale of 1,154 deeply delinquent loans totaling $214.2
million in unpaid principal balance (UPB), offered in one pool. The winning bidder
of the pool for the transaction was VRMTG ACQ, LLC (VWH Capital Management, LP).
VWH Capital Management, LP is a Minority and Women-Owned Business ("MWOB").
The transaction is expected to close on June 25, 2024. The pool was marketed with
BofA Securities, Inc. and First Financial Network, Inc. as advisors.
The loan pool awarded in this most recent transaction includes:
Pool 1: 1,154 loans with an aggregate UPB of $214,235,825; average loan size of
$185,646; weighted average note rate of 4.22%; and weighted average broker's price
opinion (BPO) loan-to-value ratio of 44%.
The cover bid, which is the second highest bid for the pool, was 98.28% of UPB
(43.03% of BPO).
Bids are due on Fannie Mae's Community Impact Pool on May 16, 2024.
All purchasers are required to honor any approved or in-process loss mitigation efforts
at the time of sale, including forbearance arrangements and loan modifications. In addition,
purchasers must offer delinquent borrowers a waterfall of loss mitigation options,
including loan modifications, which may include principal forgiveness, prior to initiating
foreclosure on any loan.
Interested bidders can register for ongoing announcements, training, and other information
here. Fannie Mae will also post information about specific pools available for purchase
on that page.
About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality,
affordable rental housing for millions of people across America. We enable the 30-year
fixed-rate mortgage and drive responsible innovation to make homebuying and renting
easier, fairer, and more accessible. To learn more, visit:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
Media Contact
Christopher Davis
202-752-7724
Fannie Mae Newsroom
https://www.fanniemae.com/news
Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif
Fannie Mae Resource Center
1-800-2FANNIE
Agency MBS Issuance Increases in April; Refis Down
jbancroft@imfpubs.com
Ginnie Mae, Freddie Mac and Fannie Mae printed $85.14 billion of new single-family
mortgage-backed securities in April, a 9.6% gain from March, according to a new
ranking and analysis by Inside MBS & ABS.
The increase was driven by purchase mortgages, with volume up 11.3% on a monthly
basis to $67.87 billion.
The surge in agency refinance business that first showed up in the February data
may be cooling off. Total refi securitization by the agencies
was down 5.2% from March.
United Wholesale Mortgage, the largest seller of loans to agency MBS, increased
its monthly sales by 30.7% to $10.01 billion in April.
***********************************************************************************************
Credit Score Costs Jump; Lenders Point to Lack of Competition
dhollier@imfpubs.com
The cost tied to credit scores when originating a mortgage has increased from
about $50 in 2022 to nearly $250 today, according to a recent white paper
from the Community Home Lenders of America.
And if the costs of credit pulls for applications that didn’t close are added,
lenders’ costs have climbed from between $200 and $250 in 2022 to
between $510 and $725 — or more.
In addition to the FICO price hikes, the big three credit reporting agencies
— Equifax, Experian and TransUnion — have also raised prices. And all
four companies, CHLA said, benefit from near monopolies in the
mortgage market.
During FICO’s first-quarter earnings call, CEO Will Lansing addressed
the criticism over the price increases, saying the firm was “catching up
from 30 years of frozen pricing.” He added, “It’s important for everyone
to understand that we’re talking about single-digit dollars in a bundle
that costs the consumer about $6,000.”
***************************************************************************************
Investors Showing Strong Demand for Non-Agency Loans
jdohnert@imfpubs.com
Maxex, which operates a non-agency platform for trading mortgages,
is seeing increased demand from investors for both non-qualified
mortgages and jumbos. Buyers increasing their allocations to the
sector include insurance companies.
Bill Decker, president and chief operating officer of Maxex, during a
webinar last week said the strong demand for non-QMs comes as
interest rate volatility has had a greater impact on agency production.
“These [non-QM] assets have been somewhat insulated from the
[interest] rate rise,” he said.
Greg Faranello, head of US rates at AmeriVet Securities, a broker-dealer,
said he expects investor activity on the secondary market to continue
improving as the market has dialed back its expectations on interest
rate cuts this year.
“At the end of the day, we’ve hit a decent point here where the market
has repriced and the [Federal Reserve] narrative has changed to
market pricing,” Faranello said. “Given the data that we’re seeing
right now, the markets are in a much better place.”
Congressional lawmakers form bipartisan real estate caucus
Three of the four founding members say that their previous experiences working
in real estate are reasons for forming the group and attempting to support the industry
May 6, 2024, 2:17 pm By - Chris Clow
A coalition of four lawmakers in the U.S. House of Representatives — two Democrats and
two Republicans — have come together to found the Bipartisan Congressional Real Estate
Caucus, a group designed to “support policies that allow [the real estate] industry to prosper”
due to its overall importance to the U.S. economy.
The group, announced on Monday, includes Reps. Mark Alford (R-Miss.), J. Luis Correa (D-Calif.),
Tracey Mann (R-Kan.) and Brittany Petterson (D-Colo.). It is publicly supported by the National
Association of Realtors (NAR), the Mortgage Bankers Association (MBA), the National Association
of Home Builders (NAHB), the American Land Title Association (ALTA) and seven other trade groups.
“Real estate represents 16% of U.S. GDP, supports 2.8 million jobs, and generates $50 billion in
tax revenue,” an announcement of the caucus’ formation stated. That’s why it’s necessary to
establish a congressional group dedicated to its needs, the group explained.
Three of the four members describe their previous experience working in real estate as reasons
for helping to form the group and pursue goals designed to support the industry.
“I am proud to serve as a co-chair of the Real Estate Caucus,” Alford said in a statement. “I know
that housing is a key issue for all Americans, and especially for my constituents. Before being
elected to Congress, I owned a small real estate business, so I know firsthand the regulatory
challenges that realtors face every day. I’m honored to be able to chair this caucus and work
together to solve real estate issues.”
Correa also spoke about his time working as a real estate broker, saying that the business
helped him to see “firsthand the role real estate plays in uplifting Main Street and hard-working
American taxpayers,” he said. “Our Caucus will bridge the partisan divide and push Congress
together to deliver real estate policy that will benefit soon-to-be homeowners across the country
and help so many families get one step closer to fulfilling their own American Dream.”
Mann attributed burdensome regulations and high-cost materials as deterrents for the housing
market. He formerly served as a commercial real estate agent, which he believes should translate
well to the goals of the caucus.
“Real estate agents and developers should be empowered to provide housing options for all
Americans, generate jobs, and offer top quality services for homeowners — not handcuffed
by overreaching federal regulations from Washington, D.C.,” Mann said.
Petterson focused on the way the real estate industry can help to facilitate the American dream.
She added that she is “proud to be a founding member of this caucus as we work to champion
policies that will increase our housing supply and accessibility, make it easier to buy a first home
or leave a home you’ve outgrown, and foster a market that is beneficial for all.”
The trade groups listed as supporters praised the launch of the new caucus.
“Lawmakers from across the political spectrum are in overwhelming agreement that this nation
is facing a housing affordability crisis,” NAR said in a statement. “Homeownership is a bipartisan
issue, and we applaud these members of Congress for forming a caucus to work across the
aisle to make housing more accessible.”
MBA also applauded the creation of the caucus, saying it will help “advance housing policy” for
renters and prospective homeowners.
“MBA looks forward to working with this bipartisan group to help more Americans achieve their
dream of housing choice — be that sustainable homeownership or affordable rental
opportunities,” MBA said.
Return of the Housing Godzillas
— Cmdr Ron Luhmann (@usnavycmdr) May 7, 2024
Freddie Mac & its Biden regulator want to guarantee second mortgages. What could possibly go wrong?
May 5, 2024 4:46 pm ET
Housing godzillas Fannie & Freddie threatening the countryside again, and better hide the children. https://t.co/nEY7dMnEdp
The US could give homeowners a $980 billion stimulus at no additional cost, 'Oracle of Wall Street' sayshttps://t.co/HKMvrIWiWI
— Cmdr Ron Luhmann (@usnavycmdr) May 7, 2024
Duty to Serve plans for GSEs lay out how the agencies and their regulator, FHFA, will comply with a federal law that requires them “to prioritize and improve affordable housing finance opportunities.https://t.co/gwh1nuCdMm
— SilverEagle1126 (@Silvereagle1126) May 6, 2024
$3 trillion could be injected into the U.S. economy without any federal spending by tweaking this corner of the mortgage market, ‘Oracle of Wall Street’ sayshttps://t.co/euIxSOLCH6
— Cmdr Ron Luhmann (@usnavycmdr) May 6, 2024
$Entire $SA article : $Fannie $Mae The Mortgage Insurer: $Long-Term $Trends
May 06, 2024 11:30 AM ET by - Gary J. Gordon
..... Summary .....
--- The Federal National Mortgage Association aka Fannie Mae's primary revenue comes from insuring the risk of owner default on single-family and multifamily homes.
--- Fannie reinsures a lot of its credit risk with private mortgage insurers, other insurers and bond investors.
--- Low current losses are due to conservative underwriting, a healthy housing market, low unemployment and low mortgage debt payments.
--- I expect only modest credit cost increases over the next 5 years.
--- Investors valuing Fannie should assume stable to modestly increasing earnings from the current $17 billion annual base.
I start with a warning label that I will not present a view on a privatization of Federal National Mortgage Association aka Fannie Mae (FNM). I do not have any information of interest on this topic. And I learned over my stock analyst career that guessing on political and legal outcomes is generally a fool’s game.
Rather, for those of you still reading this article, I will discuss how Fannie Mae’s mortgage insurance business works and a longer-term outlook for its earnings.
Fannie Mae is a mortgage insurance company
Fannie’s primary revenue driver is fee income earned by insuring the risk of owner default on single-family homes, and to a far lesser extent, apartment buildings. The beneficiaries of Fannie’s insurance coverage are investors in its mortgage-backed securities (MBS); MBS investors therefore bear no credit risk. Fannie at present insures $3.6 trillion of home mortgage loans and $0.5 trillion of multifamily mortgage loans.
Fannie’s secondary business is owning mortgage assets and short-term securities. At present, it owns $76 billion of mortgage loans and $124 billion of short-term investments. The revenue here is interest income, for which Fannie manages the risk of changing interest rates.
This wasn’t always the business mix for Fannie. While at present loans owned are 2% of loans insured, in 2007 that ratio was 27%. Back then, interest income was far greater than insurance income. But the government mandated that Fannie Mae and Freddie Mac sharply shrink their mortgage investments over time. It looks like the current level is now acceptable to Washington.
So, this is what a summary of Fannie Mae’s income statement looks like today:
Q1 '24 earnings summary ...
Fannie Mae Q1 '24 press release, my summary
Source: Q1 ’24 press release, my summary.
Fannie Mae’s role as a primary mortgage insurer
Fannie Mae is a “primary” mortgage insurer. That means it absorbs all losses on mortgage loans that default in an MBS and that were underwritten to its lending standards. Fannie’s underwriting rules cover credit scores, loan-to-value ratios, appraisals, documentation of borrower income and assets, etc. Mortgage lenders who want Fannie insurance have to guarantee that these underwriting standards have been met. If Fannie discovers after a default or other review that in fact the underwriting was incorrect, the lender has to buy the loan back and absorb the losses itself. That guarantee saved Fannie literally tens of billion dollars following the ’07-’12 housing crisis.
Primary insurance competitors
There are four primary mortgage insurers:
Fannie Mae
Freddie Mac (OTCQB:FMCC), which operates identically to Fannie
Ginnie Mae, which insures FHA and VA government loans and is itself a federal government agency.
Banks/“private label” MBS.
Banks and private label investors can’t profitably compete directly with Fannie, Freddie, and Ginnie because they benefit from being government-sponsored enterprises (GSEs). Rather, the bank/private label group insures loans that the GSEs can’t or won’t insure. The GSEs can’t insure home mortgages above $766,550 in 2024 (higher in some states); these are called “jumbo” loans. And the GSEs won’t insure loans they consider too risky; these are called “nonprime” or “subprime” loans.
Here are the current market shares of newly originated mortgages among the four competitors, as reported by Fannie Mae:
Current primary mortgage insurance market share
Fannie Mae Q1 '24 earnings presentation
Fannie Mae’s secondary insurance protection
Fannie Mae transfers some of its credit risk on its single-family mortgages to three other types of entities:
1. Private mortgage insurers (PMI). Fannie Mae’s charter requires it to get insurance coverage on any loan with less than a 20% down payment. It does so by requiring the borrower to buy PMI, which generally covers 25% of the loan amount. As of the end of Q1, 21% of Fannie’s mortgages had PMI.
2. Other insurance companies provide some insurance coverage on 9% of Fannie’s mortgages.
3. Investors buy securities that share some of the credit risk on 20% of Fannie’s mortgages.
Fannie doesn’t clearly state the loss reduction it receives from secondary insurance each period, but the clues it leaves show the income can be significant. For example,
“The amount by which our estimated benefit from mortgage insurance reduced our total loss reserves was…$4.1 billion as of December 31, 2014” (2015 annual report, page 137).
Long-term earnings issues
OK, we now have an idea of what Fannie Mae does for a living. And the income statement summary above says that Fannie earned $17 billion annualized recently. What should the general direction of earnings look like over the next, say, five years? To address that question, here are the issues I deem the most critical:
The growth rate of Fannie Mae’s MBS
Fannie’s underwriting standards
The health of the housing market
The health of the country’s home mortgage borrowers
Fannie Mae’s summary credit loss outlook.
The growth rate of Fannie Mae’s MBS
Over the last 10 years, Fannie Mae grew its MBS outstanding by 4% a year. To put that number in perspective, let’s look at the key drivers of home mortgage debt: ((A)) household income, which drives the affordability of debt growth, and ((B)) changes in Fannie market share.
Household income growth. Over the past 10 years, U.S. household income grew by 5% annualized. That was 1.5 percentage points faster than home mortgage debt growth of 3%. Forecasting household income is tricky because there are many drivers. But I’ll throw out a 4% forecast to get things rolling.
Market share. Home mortgage debt outstanding grew by 3% a year over the past decade, so Fannie took some market share. But a history of Fannie’s market share shows that it grew from ’14 to ’21, but decreased a bit since then. I believe the reason for the recent decline is that housing affordability declined due to high home prices and the rise in mortgage interest rates. Homebuyers therefore had to move to riskier loan products to qualify for a mortgage, and Fannie has maintained tight lending standards, as you shall see. Going forward, I assume flat to slightly declining market share for Fannie over the next 5 years.
Looking forward, I guess that Fannie’s MBS growth rate will average 2-3% a year over the next 5 years. Not exactly a growth business.
Fannie’s underwriting standards
This chart neatly summarizes Fannie Mae’s underwriting standards. It shows the history of a mortgage underwriting risk index:
Fannie Mae and total mortgage industry underwriting quality index
The Urban Institute
Source: The Urban Institute.
The chart tells us that Fannie’s underwriting standards are:
Consistently tighter than average.
Much tighter than they were during the ’02-’07 housing bubble. Two quick examples. First, subprime loans were 23% of Fannie’s new business in ’06. They are 0% today. And the average FICO score rose from 716 in ’06 to 753 in ’23.
Looking forward, my base case is continued conservative lending standards for Fannie. But the political risk exists of efforts to loosen Fannie and Freddie’s standards to help homebuyers qualify more easily for mortgages.
The health of the housing market
For those of you who have read my articles on PMIs (the most recent is here), the following picture looks familiar. The health of the housing market can be summarized by its vacancy rate – the more vacancies, the riskier, and vice versa. Let’s look:
Housing supply/demand history
The Census Bureau
Source: The Census Bureau.
The U.S. clearly has a housing shortage. This excess of demand over supply keeps home prices up, even with higher mortgage rates, as the last year has taught us.
Looking forward, I expect the shortage of housing to persist, primarily because of new construction limitations and continued immigration. I therefore see a material decline in home prices as a small possibility.
The health of the country’s home mortgage borrowers
Can America’s homeowners keep paying their mortgages? The two primary variables important to that question are the unemployment rate and the “mortgage debt burden” (mortgage payments as a percent of household income). Two charts summarize those variables. First, a history of the unemployment rate:
Unemployment rate history
St. Louis Federal Reserve
Source: FRED.
The current 3.9% unemployment rate is one of the lowest since WWll.
A mortgage debt burden history is here:
Mortgage payments as a percent of household income
St. Louis Federal Reserve
Source: FRED.
Again, at all-time lows.
Looking forward, both the unemployment rate and the mortgage debt burden are likely to trend up. But slowly. The unemployment rate is supported by still-strong employer demand (check out the “JOLT” survey on FRED), while those 3% mortgage originated during ’20 and ’21 will stay on the books for a long time. If so, relatively few mortgage borrowers are likely to default.
Fannie Mae’s summary credit loss outlook
Here is a history of Fannie Mae’s loan charge-offs:
Loan chargeoff history
Fannie Mae 10-K's
Sources: Fannie Mae 10-Ks.
You can see that Fannie’s losses are now minor because of the factors we reviewed above:
Good lending standards
A healthy housing market
Healthy home mortgage borrowers.
Looking forward, my summary of those factors is positive, only a little less than they have been. So loan loss expenses should remain low.
Wrapping up
Fannie Mae’s earnings 5 years from now shouldn't look much different from the $17 billion annualized pace of Q1. The MBS portfolio should be 10-15% larger, but loan losses will be somewhat higher. Whatever your outlook for Fannie Mae’s political status is, I’d factor roughly flat and relatively stable earnings into your valuation.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
Booom ! - Seeking Alpha: Fannie Mae The Mortgage Insurer: Long-Term Trends
May 06, 2024 11:30 AM ET Gary J. Gordon
https://seekingalpha.com/article/4689792-fannie-mae-mortgage-insurer-long-term-trends?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Aall_analysis%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1
Summary
--- The Federal National Mortgage Association aka Fannie Mae's primary revenue comes from insuring the risk of owner default on single-family and multifamily homes.
--- Fannie reinsures a lot of its credit risk with private mortgage insurers, other insurers and bond investors.
--- Low current losses are due to conservative underwriting, a healthy housing market, low unemployment and low mortgage debt payments.
I expect only modest credit cost increases over the next 5 years.
--- Investors valuing Fannie should assume stable to modestly increasing earnings from the current $17 billion annual base.
I start with a warning label that I will not present a view on a privatization of Federal National Mortgage Association aka Fannie Mae (FNM). I do not have any information of interest on this topic.
PacRes Mortgage Celebrates Fannie Mae and Freddie Mac Collaboration With FHA - EIN Presswire https://t.co/wuQauPN8Lg via @ein_news
— Cmdr Ron Luhmann (@usnavycmdr) May 4, 2024
$FNMA $FMCC thoughts. Something is going to happen because of the new politics around mortgage rates. Mortgage rates bottomed out in August 2021 with the 30 yr mortgage at a bit under 3%. Low rates surged real estate prices and home buying.
— 🇺🇸Paul Mampilly (@MampillyGuru) May 3, 2024
Rates are now at 7.5% & the market… pic.twitter.com/4ABw7p0aFB
Paul Mampilly ....
For example, $FNMA $FMCC pre conservatorship was the natural buyer of last resort of MBS in place of the Fed. But they can no longer do this by law. Also, they can't borrow the money they need to replace the Fed. That's also prohibited by law. And they'll definitely need to borrow to do this. Or hire the skill sets to restart this activity.
In many ways things are almost exactly to where they were in 2008. $FNMA $FMCC are in rude health. Their credit is pristine. A clean release from conservatorship will draw debt, stock investors into buy in to these "new" versions of $FNMA $FMCC.
Right now things sit at an impasse in Washington DC where the decision has to be made to do this. The recent price action in $FNMA $FMCC suggests something is happening at government levels to unknot this tangle. What could it be?
Markets seem to be speculating that after 15+ years of conservatorship, the end of it maybe near. If that is right, $FNMA $FMCC have to be some of the best speculation opportunities for spectacular, rapid gains in sudden, shocking and surprising fashion.
We've owned, tracked, monitored $FNMA $FMCC and several of their preferred stocks in the Gold tier @atgdigital_ model portfolios since 2018. These investments are starting to show modest gains now, but in success mode, these could be 📈🚀🚀❗️
Time will tell. Not financial investment advice. Just my opinion take on things.
$FNMA $FMCC thoughts. Something is going to happen because of the new politics around mortgage rates. Mortgage rates bottomed out in August 2021 with the 30 yr mortgage at a bit under 3%. Low rates surged real estate prices and home buying.
— 🇺🇸Paul Mampilly (@MampillyGuru) May 3, 2024
Rates are now at 7.5% & the market… pic.twitter.com/4ABw7p0aFB
Listen to Jared Bernstein SkateBoard savoir - TOTAL IDIOT !
These IDIOTS ARE in POSITION of POWER :-( :-( :-( https://t.co/lCNUnEY5AY
— Cmdr Ron Luhmann (@usnavycmdr) May 3, 2024
FHFA Issues Report on Enterprise Single-Family Guarantee Fees in 2022
FOR IMMEDIATE RELEASE - 5/2/2024
https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/GFee-Report-2022.pdf
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today issued its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises). Guarantee fees are intended to cover the expected credit losses, administrative costs, and cost of capital that the Enterprises incur when they acquire single-family loans from lenders. The report analyzes loans acquired by the Enterprises in 2022 by product type, risk class, and lender delivery volume, including a comparison to similar data from loans acquired in 2021.
Significant findings in the report indicate:
For all loan products combined, the average single-family guarantee fee increased by 4 basis points to 61 basis points in 2022. The upfront portion of the guarantee fee, which is based on credit risk attributes (e.g., loan purpose, loan-to-value ratio, credit score), increased by 3 basis points to 17 basis points, on average, in 2022. The increase in upfront fees was driven by a shift from a predominantly refinance market to a predominantly purchase market.
?The average guarantee fee in 2022 on 30-year fixed-rate loans rose by 3 basis points to 63 basis points, while the average guarantee fee on 15-year fixed-rate loans was unchanged at 42 basis points.
The Housing and Economic Recovery Act of 2008 requires FHFA to submit a report to Congress annually on the guarantee fees charged by the Enterprises.
Otting would have stopped the C-ship. That is why he did not get the job. https://t.co/YQpyXsD8j3
— Robert (@robjunier) May 2, 2024
Short Takes: GSEs Revise Guides - bivey@imfpubs.com
The government-sponsored enterprises incorporated the new reconsideration of value
standards from the Federal Housing Finance Agency in updates to their guide books
Wednesday. The GSEs made a number of other changes to their guides, as well.
For example, Freddie Mac will now allow attorney opinion letters instead of title insurance
for mortgages on condo units. And both GSEs established a formal definition for mortgages
to first-generation homebuyers, which could eventually include new reporting requirements
for lenders...
*****************************************************************************************************
FHFA, FHA Set New Standards for Reconsideration of Value
bivey@imfpubs.com
In a coordinated move, the Federal Housing Finance Agency and FHA issued new guidelines
Wednesday for borrowers to challenge appraisals.
“Consistent standards for lenders and appraisers, coupled with a well-understood process
for consumers to challenge appraisal findings, will help ensure that consumers are treated
fairly,” said FHFA Director Sandra Thompson.
Leaders of FHFA and FHA noted that the new standards for reconsideration of value were
part of an effort to address appraisal bias.
The standards, which apply to mortgages set for delivery to the government-sponsored
enterprises along with FHA loans, establish policies for reconsideration of value and other
requirements for lenders regarding appraisal issues.
Freddie Mac - Booooom !
Freddie Mac Surpasses Analyst Forecasts w Strong Q1 2024 Performance
— Cmdr Ron Luhmann (@usnavycmdr) May 2, 2024
Net Income: $2.8 billion, a 39% increase year-over-year, surpassing est $2.3 billion.
Revs: $5.8 billion, up 19% year-over-year, exceeding the estimated $4.877 Bil https://t.co/KCpsmWgI4d via @YahooFinance
Freddie Mac Surpasses Analyst Revenue Forecasts w Strong Q1 2024 Performance
GuruFocus Research - Wed, May 1, 2024, 6:01 PM PDT3 min read
Net Income: Reported at $2.8 billion, marking a 39% increase year-over-year, surpassing the estimated $2.3 billion.
Revenue: Achieved $5.8 billion, up 19% year-over-year, exceeding the estimated $4.877 billion.
Provision for Credit Losses: Recorded at $0.2 billion, primarily due to a modest credit reserve build in Single-Family.
New Business Activity: Increased to $62 billion from $59 billion in the prior year's first quarter.
Mortgage Portfolio: Grew to $3.0 trillion, a 2% increase year-over-year.
Delinquency Rate: Improved to 0.52% from 0.62% as of March 31, 2023.
Loan Workouts: Completed approximately 21,000, aiding in the management of delinquencies.
On May 1, 2024, Federal Home Loan Mortgage Corp (FMCC), also known as Freddie Mac, released its 8-K filing, revealing a significant increase in net income and revenue for the first quarter of 2024. The company reported a net income of $2.8 billion, marking a 39% increase from the previous year, and net revenues of $5.8 billion, up 19% year-over-year. These figures substantially exceeded analyst expectations, which had forecasted a net income and revenue of $0.00 million and $4877.00 million respectively.
Freddie Mac Surpasses Analyst Revenue Forecasts with Strong Q1 2024 Performance
Freddie Mac, a cornerstone of the American housing finance system, plays a pivotal role by purchasing, guaranteeing, and securitizing mortgages. It operates primarily through its Single-family and Multifamily segments, with the majority of revenue derived from the Single-family sector. This quarter's performance highlights the company's effective management and operational efficiency, particularly in a challenging economic environment characterized by high interest rates and affordability issues.
Key Financial Highlights
The first quarter saw Freddie Mac's total mortgage portfolio rise to $3.5 trillion, with a notable increase in net interest income to $4.8 billion, up 6% from the previous year. This growth was driven by an expanding mortgage portfolio and higher investments net interest income due to increased short-term interest rates. Non-interest income also surged to $1.0 billion from $0.3 billion in the prior year, primarily due to net investment gains in the Multifamily segment.
The provision for credit losses was $0.2 billion, a slight increase attributed to a modest credit reserve build in the Single-family segment due to new acquisitions and rising mortgage interest rates. Despite these challenges, the company's serious delinquency rate improved, dropping to 0.52% from 0.62% a year earlier, reflecting strong credit performance and effective risk management.
Operational Achievements and Market Impact
During the quarter, Freddie Mac financed 194,000 mortgages and supported 85,000 rental units, with a significant focus on affordability. 54% of the single-family homes and 90% of the rental units financed were affordable to families earning at or below 120% of the area median income. This underscores Freddie Mac's commitment to its mission of making home ownership and rental options accessible to more Americans, particularly low- to moderate-income families.
The company's efforts to enhance liquidity and stability in the housing market are evident in its new business activities, which totaled $62 billion, up from $59 billion in the same quarter the previous year. Additionally, Freddie Mac's strategic use of credit enhancements covered 61% of its mortgage portfolio, further securing its financial footing and protecting against potential losses.
Looking Ahead
As Freddie Mac continues to navigate the complexities of the housing market and broader economic conditions, its strong first-quarter performance provides a solid foundation for future growth. The company remains focused on its mission to stabilize the housing market and provide continued support to homeowners and renters across the United States.
For more detailed information on Freddie Mac's financial results and operational strategies, investors and interested parties are encouraged to review the full earnings report and supplementary materials available on the company's website.
Explore the complete 8-K earnings release (here) from Federal Home Loan Mortgage Corp for further details.
Another quarter of very solid income and another quarter of shareholders getting zilch! #Fanniegate $FNMA https://t.co/UlUpI1sJWB
— GSE News (@GSE_NewsToday) April 30, 2024
How is it possible that Calabria got the job over Otting - who has on-the-ground experience and expertise in running financial organizations and will prove his worth once again as the turnaround CEO of NYCB?
— Alec Mazo (@Alec_Mazo) May 1, 2024
He could have taken Fannie/Freddie out of conservatorship but… https://t.co/YEmsUGi46P
$Booooom ! Freddie Mac Q1 - May 01, 2024
--- Q1 Net revs $5.8 Bil, incr + 19% YOY, driven by higher net int
--- Prov for cred losses $0.2 Bil, by modest credit res in Sngl-Fam attrib
to new acquisitions & mort interest rates.
--- Net inc $2.8 Bil +39% YOY, driven by higher revenues.
$Freddie $Mac reports $Q1 $Results - May 01, 2024 1:51 PM ET
Federal Home Loan Mortgage Corporation (FMCC) StockBy: Gaurav Batavia, SA News Editor
Freddie Mac press release (OTCQB:FMCC):
--- Q1 Net revenues of $5.8 billion, an increase of 19% year-over-year,
driven by higher net interest income and higher non-interest income.
--- Provision for credit losses of $0.2 billion, primarily driven by a modest
credit reserve build in Single-Family attributable to new acquisitions and increasing mortgage interest rates.
--- Net income of $2.8 billion, an increase of 39% year-over-year, primarily driven by higher net revenues.
More on Freddie Mac
News Release - FHFA Announces Enterprise Reconsideration of Value Policies
FOR IMMEDIATE RELEASE - 5/1/2024
?Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) published new Reconsideration of Value (ROV) policies after months of collaboration with FHFA and the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration. A Reconsideration of Value is a request to an appraiser to re-assess the appraised value of a property due to potential appraisal reporting deficiencies or inappropriate selection of comparable properties, or based upon additional information the appraiser should consider.
“Consistent standards for lenders and appraisers, coupled with a well-understood process for consumers to challenge appraisal findings, will help ensure that consumers are treated fairly,” said FHFA Director Sandra L. Thompson. “These updates represent a powerful tool in combatting racial bias in property appraisals and promoting valuation accuracy.”
In June 2023, as part of the Interagency Task Force on Property Appraisal and Valuation Equity, FHFA and HUD established a working group to develop consistent ROV standards. The Enterprises’ new policies provide clear requirements for lenders to disclose and outline the ROV process for consumers, standardize communication to appraisers, and establish ROV response expectations. Lenders will also be required to refer appraisers to local, state, and federal agencies for violations of anti-discrimination laws.
Related Resources:
Fannie Mae Selling Guide Announcement
Freddie Mac Bulletin
FHA ROV Mortgagee Letter
May 1, 2024 - Transcript: Freddie Mac CFO Discusses First Quarter 2024 Financial and Business Results
Christian Lown - Executive Vice President and Chief Financial Officer
Remarks of Chris Lown
Introduction
Good morning and thank you for joining our call to review Freddie Mac’s first quarter 2024 financial results. Before I move on to our earnings, I’d like to offer some brief remarks about the mission our financial performance supports.
In the first quarter, Freddie Mac helped make it possible for hundreds of thousands of families to rent, buy or refinance a home. Ninety percent of the rental homes we helped finance were affordable to low- and moderate-income families. First-time homebuyers represented 52 percent of new single-family home purchase loans. That’s a new high for us.
We are working to extend these opportunities to more borrowers and renters in a safe, sound and sustainable way. Here are three examples of how we moved toward that goal since the beginning of the year:
First, we added to our affordability toolkit for very low-income homebuyers. Through our Home Possible Very Low-Income Purchase Credit, eligible families earning 50 percent or less of area median income can now receive a $2,500 credit to help them with closing costs or a down payment.
Second, we made mission-focused investing easier for the firms that supply liquidity to the U.S. housing finance system. Updates to our Mission Index could help investors identify mortgage-backed securities meeting their social investment goals.
And third, we continue to update our risk-management practices. We recently announced Multifamily policy and process changes—including enhanced property inspection requirements and appraisal reviews—that further strengthen our underwriting due diligence and risk mitigation.
Through these actions and others, Freddie Mac is helping to make home possible for families across the country in a safe and sound manner.
Now let’s take a look at our financial results.
Financials
We earned net income of $2.8 billion this quarter, an increase of $771 million, or 39 percent, year-over-year. This increase was primarily driven by higher net investment gains and higher net interest income which benefited from higher rates.
First quarter net interest income was $4.8 billion, up 6 percent year-over-year. The Single-Family mortgage portfolio grew 2 percent and saw a 1 basis point increase in the average estimated Single-Family guarantee fee rate. Higher investment income benefiting from higher short-term interest rates also contributed to the increase in net interest income. These positive drivers were partially offset by lower deferred fee income recognition resulting from slower prepayments due to higher mortgage rates.
Non-interest income for the first quarter was $1 billion, an increase of $672 million from the prior year quarter, primarily due to an increase in net investment gains in Multifamily.
Our provision for credit losses was $181 million for this quarter, driven by modest credit reserve builds in both business segments, compared to a higher provision expense of $395 million for the prior year quarter, which was primarily attributable to new acquisitions in that period.
Our total mortgage portfolio at the end of this quarter was $3.5 trillion, a 2 percent increase year-over-year.
Single-Family Business Segment
Turning to our individual business segments, the Single-Family segment reported net income of $1.9 billion for the quarter, up $268 million, or 16 percent year-over-year.
Single-Family net revenues of $4.5 billion increased 6 percent from the prior year quarter. This increase was primarily driven by a 4 percent increase in our net interest income, which benefited from continued growth in our Single-Family mortgage portfolio. Investment net interest income also increased due to higher short-term interest rates. These increases were partially offset by lower deferred fee income due to slower prepayments as a result of higher mortgage rates.
Our provision for single-family credit losses was an expense of $120 million this quarter, primarily due to a modest credit reserve build for new acquisitions and the impact of higher mortgage rates. The provision in the prior year quarter was $318 million, which was primarily attributable to new acquisitions.
Our current house price forecast assumes an increase of 0.2 percent over the next 12 months and 0.6 percent over the subsequent 12 months. This is down from our forecast at end of last quarter which assumed 2.8 percent and 2 percent growth over next 12 and subsequent 12 months, respectively.
The Single-Family allowance for credit losses coverage ratio at the end of this quarter was 20 basis points, unchanged from the last quarter and down 6 basis points year over year.
The Single-Family serious delinquency rate continued to be historically low and declined to 52 basis points at the end of the first quarter, down 10 basis points from 1Q 2023 and 3 basis points from 4Q 2023. In the first quarter, we helped approximately 21,000 families remain in their homes through loan workouts.
Our Single-Family mortgage portfolio at the end of the quarter was $3.0 trillion, up 2 percent year over year. Credit characteristics of our Single-Family portfolio remained strong, with the weighted average current loan-to-value ratio at 52 percent and the weighted average current credit score at 754. At the end of the quarter, 61 percent of our single-family portfolio had some form of credit enhancement.
New business activity totaled $62 billion this quarter, slightly up from $59 billion from 1Q 2023. First time home buyers represented 52 percent of our total new business activity.
Higher mortgage rates continue to impact both purchase and refinance activity. Refinance activity accounted for 15 percent of our total new business activity this quarter which was slightly up from 11 percent in 4Q 2023. Mortgage rates at the end of the quarter were 6.79 percent, up from 6.61 percent at end 4Q 2023 and 6.32 percent at end 1Q 2023.
The weighted average original loan-to-value on new purchases was 78 percent and weighted average original credit score was 753, while the average estimated guarantee fee charged on the new business was 55 basis points.
Multifamily Business Segment
Moving on to Multifamily, the segment reported net income of $821 million, up $503 million from the prior year quarter. This increase was primarily driven by higher non-interest income of $1 billion, which increased $593 million from the prior year quarter. This increase in non-interest income was primarily driven by net gains from interest-rate risk management activities, higher revenues from held-for-sale loan purchase and securitization activities, and favorable fair value changes from spreads.
Net interest income of $271 million was up 32 percent year-over-year, primarily driven by higher yields on mortgage loans as a result of higher interest rates and the larger average PC portfolio.
The Multifamily provision for credit losses was an expense of $61 million this quarter versus $77 million in the prior year quarter.
Our Multifamily new business activity was $9 billion for the first quarter, up $3 billion or 50 percent from a year ago. Our Multifamily business provided financing for 85,000 multifamily rental units this quarter, of which 61 percent were affordable to low-income families.
The Multifamily mortgage portfolio increased 4 percent year-over-year to $443 billion. Approximately 94 percent of the Multifamily mortgage portfolio was covered by credit enhancements at the end of this quarter.
The Multifamily delinquency rate at end of the quarter was 34 basis points, up 21 basis points versus 13 basis points at the end of March 2023. This increase was primarily driven by delinquency in our floating rate loans and small business loans portfolio. Ninety-four percent of these delinquent loans had credit enhancement coverage.
Capital
On the capital front, our net worth increased to $50.5 billion at the end of the quarter, representing a 29 percent increase year-over-year.
Conclusion
In conclusion, Freddie Mac helped 279,000 families purchase, refinance, or rent a home while delivering solid financial results this quarter. Importantly, most of the liquidity we provided supported low- and moderate-income households, as well as first-time homebuyers. As affordability challenges are expected to persist, efforts to expand affordability for homeowners and renters will remain a key focus of Freddie Mac.
$Freddie $Mac $Net $Revs $5.8 Bil Net $Income $2.8 Bil
$2.8 Bil / 650 Mil shares = $4.30 / share
$FNMA $Net $Worth $Increased to $82 $Billion ...
$4.3 Bil net / 1.158 Bil shares = $3.71 per share ...
Freddie Mac Announces Release First Quarter 2024 Financial Results
— Cmdr Ron Luhmann (@usnavycmdr) April 30, 2024
MCLEAN, Va., April 30, 2024 (GLOBE NEWSWIRE) -- Freddie Mac announced today that it plans to report First Quarter 2024 financial results before U.S. financial markets open on Wednesday, May 1, 2024. pic.twitter.com/qz910RFNfO
$FNMA $Net $Worth $Increased to $82 $Billion ...
$4.3 Bil net - That's $3.71 per share for the 1st Qtr
Fannie Mae Net Income $4.3 Billion 1st Qtr 2024 -
— Cmdr Ron Luhmann (@usnavycmdr) April 30, 2024
10Q Executive Summary of Earnings pic.twitter.com/fsWHapSR4S
Catman posting on X about Conservatorship EXIT !
I hear taking all of it away and giving it to your business partners is an option. You could go kiss some tattoos, get sued and then pay for the settlement and legal fees on their dime!
— Jeremy Cain (@jeremycain_usc) April 29, 2024
Freddie Mac Delivers 2024 Equitable Housing Finance Plan
Update to three-year Plan continues progress on equitable and sustainable housing
April 29, 2024 2:15 PM EDT
MCLEAN, Va., April 29, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today published its Equitable Housing Finance Plan and Performance Report for 2023 along with revisions to its 2024 objectives and actions within its three-year Equitable Housing Finance Plan. The Plan is the company’s roadmap to promote sustainable homeownership and rental opportunities for traditionally underserved communities across the nation. Since 2022, Freddie Mac has helped more than 764,000 minority borrowers purchase or refinance a home, accounting for approximately 33 percent of the company’s Single-Family acquisitions.
“Our Equitable Housing Finance Plan is an important component of Freddie Mac’s mission-driven efforts to expand homeownership and improve outcomes for underserved families,” said Pam Perry, Single-Family Vice President of Equitable Housing at Freddie Mac. “In our Single-Family business, our Plan builds on the initiatives that are proven to work – down payment assistance, Special Purpose Credit Programs and consumer education, among other initiatives. While there is more work to be done, we are making steady progress.”
“Freddie Mac’s multifamily efforts are focused on creating and preserving affordable rental housing, driving meaningful advancements for renters and building a more diverse and equitable multifamily finance industry,” said Corey Aber, Multifamily Vice President of Mission, Policy & Strategy at Freddie Mac. “Through this work, we are helping address supply and affordability challenges that acutely impact underserved communities, as well as advance resident-centered practices and increase opportunities for diverse and emerging borrowers and lenders.”
The company today also published a progress report highlighting its accomplishments against the 2023 Plan.
Updates found within this year’s Plan include the following:
Expanding Access to Down Payment Assistance to help first-time homebuyers. In 2023, Freddie Mac launched DPA One®, a free, one-stop shop that helps lenders and loan officers quickly find and match borrowers to down payment assistance programs nationwide. Since its release, over 3,600 loan officers have registered for DPA One, which includes nearly 700 DPA programs covering 49 states and the District of Columbia. Throughout 2024, Freddie Mac will continue to enhance the tool and promote DPA One to industry partners focusing on underserved communities.
Using Special Purpose Credit Programs (SPCP) to make homeownership possible for underserved communities. Under the Plan, Freddie Mac will continue purchasing loans originated through both lender SPCPs and its own SPCP, BorrowSmart AccessSM. BorrowSmart Access provides down payment assistance and financial education to eligible families. In 2023, Freddie Mac purchased more than 9,300 SPCP loans, the majority of which supported homeownership for families of color. In its new Plan, the company committed to purchasing another 10,000 loans originated in 2024.
Expanding initiatives to help renters build credit and achieve homeownership. The company is doing this in two ways: establishing and improving credit scores and considering a history of on-time rent payments in loan purchase decisions. To date, approximately 500,000 renters have enrolled in Freddie Mac’s renter credit building initiative, with more than 300,000 of them increasing their credit score and more than 55,000 participants establishing credit scores for the first time. In 2024, the company will continue to expand this initiative to additional multifamily properties, with a goal of making on-time rent reporting an industry standard.
Freddie Mac also took steps to expand access to credit for historically underserved borrowers by using alternative credit data — including rent payment history — as part of the company’s loan purchase decisions. The company will continue this work in 2024 by exploring additional product enhancements and continuing outreach to borrowers and lenders to increase awareness and increase lender adoption of our digital tools.
Expanding Opportunities for Diverse and Emerging Lenders and Market Participants. To increase diversity across housing finance, Freddie Mac Multifamily launched an emerging correspondent program to help small financial institutions access Freddie Mac capital, including minority depository institutions and Community Development Financial Institutions. In 2023, the company set a new requirement for multifamily lenders to execute at least one correspondent agreement.
To increase opportunities for diverse and emerging multifamily borrowers, Freddie Mac is bridging the relationship and information gaps that can hold emerging industry players back as they seek to grow and access capital. Through a cohort of Diverse and Emerging Sponsors, Freddie Mac Multifamily helps build connections to expand the industry, create relationships and impact the market for years to come.
The company also expanded its Develop the DeveloperSM Academy, a program designed to increase the number of woman and minority-owned developers in underserved areas. In 2023, Freddie Mac trained more than 119 developers who account for 197 new single-family units and 485 new multifamily units currently in development.
Supporting the creation, preservation and rehabilitation of affordable housing by further expanding its use of multifamily Forward Commitments, which are commitments to provide permanent financing for new rental units or substantial rehabilitation of a multifamily property. In 2023, the company committed to funding more than 22,000 units through Forward Commitments, exceeding its goal for the year. In 2024, Freddie Mac will fund an additional 20,000 units through Forward Commitments.
Freddie Mac is also committed to preserving rent levels by providing incentives for multifamily borrowers in exchange for a commitment in the loan agreement to keep rents for a percentage of units affordable over time. This is critically important for working families to ensure rents remain predictable and affordable. In 2023, the company exceeded its goal for preservation with more than 3,200 units. In year three of the Plan, the company has committed to preserving rents for an additional 5,000 units.
To help maintain existing stock of affordable rental housing, Freddie Mac is using its multifamily loan offerings to support the rehabilitation of affordable and workforce rental housing. The company exceeded its goal of 10,000 rehabilitated units and has committed to funding an additional 10,000 units in the 2024 Plan.
Educating the industry and consumers by providing outreach, resources and research to expand housing opportunities, particularly for diverse homebuyers. Efforts in 2023 resulted in more than 500,000 consumers being reached through education and counseling, 70% of whom self-identified as people of color. The company also launched the new Spanish-language version of CreditSmart® Essentials, its comprehensive financial capability curriculum for consumers.
Freddie Mac’s Equitable Housing Finance Plan includes a series of actions to advance equity in both the single-family and multifamily housing markets. The ambitious set of initiatives focuses on five core areas: addressing the homeownership gap, strengthening investment within formerly redlined areas, financing the creation and preservation of affordable housing, increasing opportunities for renters and helping to eliminate disparities among underserved communities. The Plan sets goals, outlines actions to achieve those goals and includes an annual progress report.
For additional information, read the 2024 Plan, 2023 Progress Report, and the company’s fact sheet. Learn more about Freddie Mac’s diversity, equity and inclusion efforts.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
FHFA Announces Release of Fair Lending Final Rule
Enterprise Equitable Housing Finance Plan Updates are also published
FOR IMMEDIATE RELEASE - 4/29/2024
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its Fair Lending, Fair Housing, and Equitable Housing Finance Plans Final Rule, together with Fannie Mae and Freddie Mac’s (the Enterprises) Equitable Housing Finance Plan updates for 2024 and Performance Reports for 2023.
The final rule codifies in regulation FHFA’s fair lending oversight requirements for the Enterprises and the Federal Home Loan Banks; the Enterprises’ Equitable Housing Finance Plans (Plans); collection of homeownership education, housing counseling, and language preference information from the Supplemental Consumer Information Form (SCIF); and new Federal Home Loan Bank reporting requirements.
Since the release of their Plans in June 2022, the Enterprises have made significant progress towards ensuring all borrowers and renters have access to fair, sustainable, and equitable housing opportunities. The Enterprises have served close to 2.6 million families under the Plans by educating consumers, reducing closing costs, introducing innovation into underwriting, and combating appraisal bias. The Enterprises also propose new actions for 2024, including a focus on promoting homeownership for first-generation homebuyers.
“As we reflect on the significance of Fair Housing Month, FHFA and its regulated entities will continue to address barriers that make affordable housing difficult to find,” said FHFA Director Sandra L. Thompson. “These initiatives are critically important at a time when housing affordability remains a persistent challenge.”
FHFA will seek public feedback to inform the next three-year Plans through a Request for Input and listening session. FHFA expects to hold a public listening session in June 2024, and anticipates releasing the next Plans in January 2025.
FHFA Announces New Division of Public Interest Examination
FOR IMMEDIATE RELEASE - 4/29/2024
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the creation of a new Division of Public Interest Examination (DPIE), which will be responsible for supervisory oversight of the Agency’s regulated entities in the areas of affordable housing, community development, diversity and inclusion, consumer protection, and fair lending. FHFA serves as regulator and conservator of Fannie Mae and Freddie Mac (the Enterprises) and regulator of the Federal Home Loan Bank System.
Establishment of the new division will highlight the Agency’s focus on public interest examinations and increase synergy and collaboration between existing public interest examination programs. James Wylie will serve as the Deputy Director for DPIE. Wylie has led FHFA’s Office of Fair Lending Oversight since 2018.
“FHFA has a statutory obligation to ensure our regulated entities operate in the public interest,” said Director Sandra L. Thompson. “Since joining the Agency, James has guided FHFA in maturing its fair lending supervision program, and he is well prepared to lead and strengthen these critical supervision functions.”
This organizational change has been shared with National Treasury Employees Union (NTEU) Chapter 343, and FHFA is committed to working with the union to complete impact and implementation bargaining.
About James Wylie: Wylie previously served as the Associate Director of FHFA’s Office of Fair Lending Oversight. Prior to joining FHFA, he worked on consumer protection and fair lending regulations at the Consumer Financial Protection Bureau and on fair housing matters at the Department of Housing and Urban Development. Wylie has also been an instructor for the National Fair Housing Training Academy. He has a J.D. from the University of Oklahoma and a B.A. in history from the University of Tulsa.