GSEs

More than 1 million homebuyers qualified for a mortgage in the third quarter, the first time since the financial crisis that lenders reached such a threshold, according to research by the Urban Institute.

Fannie Mae and Freddie Mac unveiled an appeals process Tuesday that will allow an independent arbitrator to resolve disputes between lenders and the government-sponsored enterprises over loan repurchase demands.

Lenders argue that the GSEs would be better off buying more loans that are already insured, rather than transferring credit risk after holding them for a time. But Freddie Mac's Kevin Palmer says certainty of reimbursement is more important than the timing of risk transfers.

In the absence of congressional action on housing finance reform, here is what the Federal Housing Finance Agency should do sooner rather than later.

The Federal Housing Finance Agency may face legislation or a lawsuit in the near future as it tries to force captive insurance companies to exit the Federal Home Loan Bank System.

In one corner are groups like the Community Home Lenders Association and the major credit union groups, which are hoping the administration will further cut premiums after a reduction a year ago. In the other are the MBA and the ICBA, which argue a cut now would be too soon.

Financial services issues that helped define a presidency were largely absent from Tuesday's State of the Union address, including the crucial policy items that have not yet been resolved.

Community bankers and credit unions scored a significant victory while others in the mortgage industry lost out in the Federal Housing Finance Agency's final rule establishing membership standards for the Home Loan banks.

The agency scrapped a part of its 2014 proposal that would have required Home Loan bank members to maintain a certain percentage of residential mortgage assets in order to keep their membership. But it held fast on a provision that would disqualify captive insurance firms from membership.

Banks can help ease a severe national shortage in affordable rental properties — and make money doing it.

Officials who assess how well banks lend and invest in their communities seem out of sync with the experiences of Main Street.

A proposal issued two weeks ago by the FHFA calls on the two government-sponsored enterprises to identify opportunities to increase their purchases of small multifamily properties in rural areas, sparking some concern among lenders.

The Federal Housing Finance Agency appears to be on course to decide next year whether Fannie Mae and Freddie Mac should update their credit scoring models.

The Federal Housing Finance Agency is giving private mortgage insurers some hope this holiday season that they might get a change to offer deeper mortgage insurance on Fannie Mae and Freddie Mac single-family loans.

Some mortgage investors are refusing to buy home loans that are at risk of violations of new consumer-disclosure rules. The problem appears to be worst among nonagency jumbo loans purchased by private investors.

Freddie Mac will begin issuing single-family mortgage-backed securities sometime next year via the new common securitization platform, the Federal Housing Finance Agency said Thursday.

Sen. Bob Corker championed a provision he added to the budget bill that would temporarily prevent the Treasury Department from recapitalizing Fannie Mae and Freddie Mac and discussed other banking priorities in a sitdown interview with American Banker.

Now is not the time for the Federal Housing Administration — which has stayed strong amid turmoil — to reduce its market share.

The agency released a plan Tuesday that would provide incentives for owners of manufactured housing communities to reform their practices if they want to tap financing by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency unveiled a new proposal Tuesday that would detail how Fannie Mae and Freddie Mac should serve three underserved markets: manufactured housing, affordable housing preservation and rural markets.