The federal supervisor charged with overseeing Fannie Mae and Freddie Mac says the two mortgage financiers will not be allowed to introduce new loan products into the market or take on additional responsibilities to lower interest rates once the Federal Reserve's mortgage purchase program expires next month. The Federal Housing Finance Agency (FHFA) has also told lawmakers that it plans to reduce Fannie Mae and Freddie Mac's mortgage portfolios, and the companies will not be "substantial buyers or sellers of mortgages" going forward.
Problems in the commercial real estate sector have put Congress on the offensive. House members are particularly concerned with guidance issued be federal banking regulators, advising lenders to extend or restructure loans backed by income-producing or development properties. Lawmakers say there are indications these loans are not being serviced properly, and evidence that regulators themselves are triggering defaults by encouraging lenders to write down the value of performing loans when payments are current.
The slew of mergers and acquisitions (M&A) in the mortgage industry last year launched a trend that will accelerate in 2010 and 2011, according to recent predictions by the investment bank Berkery Noyes. Lenders, vendors, and servicers will continue to embrace tactical acquisitions to shore up product lines, capture customers, increase market share, and ensure they are prepared for the next wave of forward moving originations, Berkery Noyes said.
Connecticut Attorney General Richard Blumenthal sent cease-and-desist letters to 30 law firms and real estate companies this week ordering them to stop abrupt and illegal evictions of tenants of foreclosed properties. Blumenthal says his office has received complaints from tenants who were illegally forced out of rental homes after their landlords' properties were foreclosed - a violation of the federal Protecting Tenants at Foreclosure Act (PTFA) signed into law last year.
| |
|
DSNews.com
Comments
Post a Comment