Stung by continuing write downs on risky alt-A, interest-only, and negative amortization loans, Fannie Mae posted a $16.3 billion loss in the fourth quarter, and said it would ask the U.S. Treasury for $15 billion in cash to keep its net worth above zero.
Fannie Mae said Friday that many mortgage lenders are not complying with the most basic underwriting guidelines, such as confirming a borrower’s identity or verifying a Social Security number.
GMAC Financial Services has forced out six managers in the servicing division of Residential Capital Corp. as part of a belt-tightening effort at the company.
Mortgage Bankers Association leaders speaking at the opening session of this year’s national servicing conference in San Diego said that current challenges are resulting in a greater spirit of cooperation within the industry and with the government that will continue throughout the year.
Commercial banks originated $146 billion of residential loans through their branches and other retail outlets in the fourth quarter, an 11% sequential decline, according to new figures compiled by the Federal Deposit Insurance Corp.
Major banks “rebooked” $19 billion in seriously delinquent Ginnie Mae loans in the fourth quarter and pushed the percentage of single-family loans held by FDIC-insured institution that are 90 days or more past due up to 9.3%, from 8.1% in the previous quarter.
The Federal Housing Administration is advising mortgage brokers to hold off on getting their annual financial audits until they see a final rule that will change the net worth requirements for lenders and brokers.
