This piece of News Letter has a lot of good information that tells us what is going on behind the scene...please read it and see my notes at the end.
WASHINGTON, DC – Fannie Mae (FNMA/OTC) has finalized an agreement with National Mortgage Insurance Corporation ("National MI") on a transaction to provide credit risk coverage on over $5 billion in single family mortgages. The coverage furthers the 2013 Conservatorship Scorecard goal of transferring risk to private sources of capital. The insurance became effective as of September 1, 2013.
"This insurance policy transfers credit risk away from taxpayers, which is an important element of creating a more sustainable housing finance system," said Andrew Bon Salle, executive vice president for underwriting, pricing and capital markets at Fannie Mae. "We will continue working with FHFA to meet the goals of the Conservatorship Scorecard for 2013 to reduce risk for Fannie Mae and taxpayers."
The National MI policy covers certain loans acquired by Fannie Mae in the fourth quarter of 2012, each of which had an original loan-to-value ratio (LTV) between 70 percent and 80 percent. The terms of the policy result in Fannie Mae’s exposure on these loans being reduced to approximately 50 percent LTV, subject to a deductible amount and aggregate loss limits.
Among other provisions, the Conservatorship Scorecard for 2013 asks Fannie Mae to transfer credit risk on at least $30 billion of single-family loans that the company owns. Additional transactions are expected this year in order to meet the goals of the Scorecard.
IMHO - I think we may have stumbled on the million dollar answer that will tell us when FNMA will get out of conservatorship.
- Reading the NEWS RELEASE above, it mentiones a scorecard
- It mentions that it has to meet the goals of conservatorship
- It mentions that the "exposure on these loans being reduced to approximately 50 percent LTV"
- It also asks among other provisions, the Conservatorship Scorecard for 2013 asks Fannie Mae to transfer credit risk on at least $30 billion of single-family loans that the company owns.
It is clear that there is a checklist...so when they are all met, we remove the shackles (conservatorship) and lady Fannie is free.
Therefore if we can find the answer to when the $30 Billion will be transfered, we may get our asnwer as well. I am sure there are other items on the checklist that have been met and some in the works...
We need to start keeping track.
What Lenders Say About Fannie Mae
“Small businesses like mine are those that employ locally, that continue to pay taxes, continue to eke out a living...We know Fannie Mae has made us a priority. They go above and beyond in involving us in events, in information distribution so that we can grow our business soundly and responsibly.” -- Chris George, Founder and President, CMG Mortgage, San Ramon, CA
Cheers!
Crawford - 4/12/14/26
