GSEs

Lenders will get a reprieve from the threat of some mortgage-related penalties under a new program announced by housing-finance giant Fannie Mae on Monday.

In a move designed to help further calm lender fears about mortgage repurchase liability, Fannie Mae is preparing to offer immediate representation and warranty relief to lenders that use its suite of automated quality assurance technology.

As Fannie Mae and Freddie Mac continue to experiment with upfront risk-sharing deals, some small mortgage lenders fear they will be left out of the action.

Current proposals about what to do with Fannie Mae and Freddie Mac that still focus on a government-backed solution are misdirected.

A former top regulator of Fannie Mae and Freddie Mac wants to abandon the development of the common securitization platform and use the existing Ginnie Mae platform to issue government-guaranteed mortgage-backed securities.

Following industry objections to how the Federal Deposit Insurance Corp. defines brokered deposits, a House panel heard testimony Tuesday on a series of bills that would amend the definition.

The bad-news stories about the largest institutions are worrisome in light of housing finance proposals that could benefit the big banks even more.

Both government-sponsored enterprises discount the rates on loans for buildings with "green" certifications; they also underwrite some of the projected savings from upgrades on buildings of a certain age, allowing owners to take out bigger loans.

Contrary to expectations about growing mortgage lending volumes, current industry trends suggest a gradual reduction in capacity for both lending and servicing that should alarm policymakers.

Steve Eisman, who profited from the mortgage meltdown, tells an industry crowd why he thinks the financial system is safer under Dodd-Frank, why Silicon Valley is "clueless" about lending and what the next "big short" will be.