FHFA - St Louis Real Estate News

NAR and MBA Seek Assurance from Fannie Mae and HUD on Commission Practices to Protect Homebuyers

By Dennis Norman, on March 29th, 2024

One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.

In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.

What does this mean for homebuyers? Under the Continue Reading →

Fannie Mae & Freddie Mac Increase Maximum Loan Amounts

By Dennis Norman, on December 2nd, 2020

Last week, the Federal Housing Finance Agency (FHFA)announced that effective January 1s, 2021, the maximum loan amounts for Fannie Mae and Freddie Mac conforming loans will be increased from $510,400 to $548,250. Once a home buyers loan amount exceeds the Fannie and Freddie limits, their loan is considered a “jumbo” loan and typically less attractive terms, so an increase in the Fannie and Freddie limits is definitely helpful to home buyers in higher price ranges.

Fannie Mae and Freddie Mac are also increasing the loan limits for loans to purchase multi-family properties as well. The multi-family property limits for 2021 Continue Reading →

HUD, Fannie Mae & Freddie Mac Suspend Foreclosures for at least 60 days

By Dennis Norman, on March 18th, 2020

In response to the coronavirus pandemic, the U.S. Dept. of Housing and Urban Development (HUD), as well as the Federal Housing Finance Agency (FHFA) (which oversees Fannie Mae and Freddie Mac), directed their loan servicers to suspect foreclosures and evictions for at least 60 days to help those people affected.

In a statement, Mark Calabria, the Director of the FHFA, said that borrowers affected by the coronavirus who are having difficulty paying their mortgages should reach out to the mortgage servicers as soon as possible.

HUD Secretary Ben Carson said that “The halting of all foreclosure actions and evictions for Continue Reading →

Help For Underwater Homeowners – One-time principal reduction plan

By Dennis Norman, on May 6th, 2016

In mid-April the Federal Housing Finance Agency (FHFA) announced a new program aimed to help homeowners with a Fannie Mae or Freddie Mac loan that are seriously underwater on equity, meaning that their mortgage balance is at least 115 percent of the current value of their home. This new principal reduction modification program offers, to those that qualify, a one-time reduction in the balance of their mortgage to bring them out of a negative equity position. Continue Reading →

FHFA Says No To HOA Liens or Super-Priorty Liens Wiping Out Fannie Mae or Freddie Mac Home Loans

By Dennis Norman, on April 22nd, 2015

The Federal Housing Finance Agency (FHFA) issued a release yesterday stating that while that agency acts as conservator for Fannie Mae and Freddie Mac, no “property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency.” The release went on to say that Title 12 United States Code Section 4617(j)(3) “precludes involuntary extinguishment of Fannie Mae or Freddie Mac liens while they are operating in conservatorships and preempts any state law that purports to allow holders of homeownership association (HOA) liens to extinguish a Fannie Mae or Freddie Mac lien, Continue Reading →

Seriously Delinquent Mortgage Rate Falls to Lowest Level In Six Years

By Dennis Norman, on February 13th, 2015

The seriously delinquent mortgage rate (90+ days late) fell to 1.91 percent of all outstanding mortgages in November, the lowest level since December 2008, according to a report just released by the Federal Housing Finance Agency (FHFA). Continue Reading →

Fannie Mae and Freddie Mac Told To Allow Foreclosed Homeowners To Buy Their Home Back

By Dennis Norman, on November 25th, 2014

Today, the Federal Housing Finance Agency (FHFA) told Fannie May and Freddie Mac to change their policies to allow foreclosed homeowners the opportunity to buy their home back at the property’s fair-market value, just like any other purchaser can. Currently, if a foreclosed homeowner wanted to buy their home back from Fannie Mae or Freddie Mac they would be required to pay the entire amount owed on their previous mortgage although a non-related purchaser, not buying the home for the benefit of the former homeowner, only has to pay the current fair market value.

“This is a targeted, but important Continue Reading →

Home mortgages may become more costly in St. Louis thanks to local law

By Dennis Norman, on September 20th, 2012

In spite of warning from the Mortgage Bankers Association (MBA), the St. Louis Association of REALTORS (SLAR) and other housing-related groups of the damage the “Mortgage Foreclosure Intervention Code” (Bill #174 introduced by Hazel Erby, District 1) could do to the already struggling St Louis housing market, including increasing the cost of home mortgages, last month the St. Louis County Council passed the bill, it was signed into law by County Executive Charlie Dooley and will go into effect on September 28, 2012. Then, just last week, Lewis Reed, President of the St. Louis Board of Alderman, introduced what is a basically the same bill in an attempt to get the same law enacted by the City of St. Louis. Continue Reading →

Short sales just got better

By Dennis Norman, on August 24th, 2012

I have good news for homeowners that are underwater on the mortgage and need to do a short sale, or for buyers looking to buy a short sale. The Federal Housing Financing Agency just issued new guidelines to lenders that service Fannie Mae and Freddie Mac loans that are intended to “offer a streamlined short sale approach” which will be music to the ears of anyone that has been through the process. I don’t always agree with the actions of the FHFA but I think this is a good move and will help the market. The new guidelines, which go into effect November 1, 2012, include: Continue Reading →

Home Affordable Refinance Program (HARP) Guidelines Eased and Deadline Extended

By Dennis Norman, on October 24th, 2011

The Federal Housing Finance Agency (FHFA) announced it eased the requirements as well as extended the Home Affordable Refinance Program (HARP) to December 31, 2013 from the current expiration date for the program of June 30, 2012. According to FHFA, as of August 31, 2011, nearly 894,000 borrowers have been refinanced through HARP and they (FHFA) feel easing the requirements will make it possible for many additional borrowers to refinance as well. Continue Reading →

Converting REO’s to rentals could help housing recovery according to Fed Official

By Dennis Norman, on September 8th, 2011

Federal Reserve Governor Elizabeth A. Duke, while speaking at the Federal Reserve Board Policy Forum last week, discussed the effect on the housing market that properties acquired by banks and lenders through foreclosure (REO’s) and suggested that if some of this inventory was converted to rental property by the lenders, this may have a positive effect on the housing market.

Continue Reading →

Former Chairman of Taylor, Bean & Whitaker Convicted for $2.9 Billion Fraud Scheme That Contributed to the Failure of Colonial Bank

By News Desk, on April 19th, 2011

Lee Bentley Farkas, the former chairman of a private mortgage lending company, Taylor, Bean & Whitaker (TBW), was convicted today for his role in a more than $2.9 billion fraud scheme that contributed to the failures of Colonial Bank, one of the 25 largest banks in the United States in 2009, and TBW, one of the largest privately held mortgage lending companies in the United States in 2009.

Continue Reading →

Home Affordable Refinance Program (HARP) Extended One Year

By Dennis Norman, on March 14th, 2011

The Federal Housing Finance Agency (FHFA) announced it has extended the Home Affordable Refinance Program (HARP) to June 30, 2012. The HARP program was scheduled to end June 30, 2011.

This program is designed to help homeowners whose homes have lost value. Through 2010 there have been 621,803 HARP refinances with loan amounts from 80 percent of value up to 125 percent of value.

For more information, or to see if you are eligible for HARP, click here.

Feds Propose Rule on Private Transfer Fees

By Dennis Norman, on February 3rd, 2011

The Federal Housing Finance Agency (FHFA) back in August, 2010, published proposed “guidance” related to private transfer fee covenants that applied to Fannie Mae, Freddie Mac and Federal Home Loan Banks (the “regulated entities). The message in this guidance was that private transfer fees are bad and those regulated enterprises should stay away from lending on real estate subject to such covenants.

Continue Reading →

REALTORS® Support Proposal to End Private Transfer Fees

By News Desk, on November 8th, 2010

The National Association of Realtors® announced that it “strongly supports” the proposed guidance from the Federal Housing Finance Agency to prevent government-sponsored enterprises Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from investing in mortgages encumbered by private transfer fee covenants.

In a letter sent to the Federal Housing Finance Agency (FHFA), NAR reiterated its opposition to these covenants, which developers often attach to a property to require payment of fees back to that developer each time the property is resold. These covenanted mandates are often extremely difficult to reverse once in place, and in many Continue Reading →

Mortgage Bankers urge Feds not to ban all private transfer fees

By Dennis Norman, on October 15th, 2010

Dennis Norman

In a letter to the Federal Housing Finance Agency, John A. Courson, the President and Chief Executive Officer of the Mortgage Bankers Association (MBA) said that the MBA “opposes the practice of private third parties, such as developers, builders, licensing companies and real estate brokers, imposing private transfer fee covenants on residential real estate for the purpose of extracting future income.” However, in his letter Mr. Courson goes on to say that the “MBA is concerned thatencumbering housing transactions with these types of PTFs will impede the marketability and affect the valuation of properties and thus Continue Reading →

Private Transfer Fee Covenants Draw Fire From FHFA

By Dennis Norman, on August 12th, 2010

Dennis Norman

Today the Federal Housing Finance Agency announce proposed guidance that would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages with private transfer fee covenants. Considering that covers the lenders that originate, invest in or, or insure over 90 percent of the homes in the U.S. that pretty much puts the kibosh on financing a home with such a transfer fee.

Continue Reading →

Is The Government Going to Push Us Into Another Housing Bust?

By Dennis Norman, on June 21st, 2010

Dennis Norman

UPDATE June 21, 2010- I said I would update this post after the proposed rules were published on the Federal Register with info on how to submit a comment -If you would like to comment, see the comment instructions in the Federal Register (I highlighted them) by clicking here -end of update.

June 4, 2010 Are they really going to repeat the same mistakes that helped cause this housing recession?

I say this because of a release I received from the Federal Housing Finance Agency (FHFA) last week announcing that the FHFA “has sent to the Continue Reading →

Fannie Mae and Freddie Mac to Delist Shares on NYSE; St. Louis Interest Rates Remain Low

By Robert Fishel, on June 16th, 2010

Fannie Mae and Freddie Mac notified the New York Stock Exchange (NYSE) of its intent to delist its common and preferred stock. The Federal Housing Finance Agency (FHFA), the conservator for Fannie and Freddie, has directed the companies to delist their common stock and their preferred stock from the NYSE. “FHFA’s determination to direct each company to delist does not constitute any reflection on either Enterprise’s current performance or future direction, nor does delisting imply any other findings or determination on the part of FHFA as regulator or conservator,” FHFA Acting Director Edward J. DeMarco said in a press release.

Continue Reading →

US Home Prices Fall In First Quarter; St Louis Home Prices Rise

By Dennis Norman, on May 25th, 2010

Dennis Norman

Today the S&P/Case-Shiller Index report for the first quarter of 2010 was released showing that the U.S. National Home Price Index fell 3.2 percent in the first quarter of 2010, but remains above it’s level from a year-earlier.

In March, 13 of the 20 MSA’s covered by the Case-Shiller report, as well as both the 10-city and 20-city composites, were down for the month however both the composites as well as 10 of the 20 MSA’s showed year-over-year gains. The report cites the end of the tax incentives and the increasing foreclosure rate as reasons the Continue Reading →

St Louis Real Estate – St Louis Home Prices Increased 1.32 Percent in 2009

By Dennis Norman, on February 25th, 2010

Dennis Norman

According to a report issued this morning by the the Federal Housing Finance Agency (FHFA) St. Louis area home prices increased by 1.32 percent in 2009. Granted that’s not much but, hey, after what we’ve seen the last couple of years in the housing market I think this is very good news.

This information comes for the FHFA’s purchase-only price index which is based upon repeat sales of the same single-family properties therefore making it a much more accurate barometer of the market than just looking at median prices of homes sold as many reports do. Continue Reading →

HAMP loan modifications up 40 percent in September; Serious mortgage delinquencies up 147 percent in past year

By Dennis Norman, on October 20th, 2009

Dennis Norman

By: Dennis Norman

Yesterday the Federal Housing Finance Agency (FHFA) reported that Fannie Mae and Freddie Mac’s trial mortgage loan modifications under the Obama Administrations Home Affordable Modification Plan (HAMP) were up more than 40 percent in September 2009 from the previous month. According to the report, mortgage loans that are 60-plus-days delinquent increased to 1,401,000 borrowers in July, up a whopping 147 percent from July, 2008 when there were 566,000 borrowers 60 plus days delinquent.

Here are highlights from the report (all the data, unless noted otherwise is from July 31, 2009):

Continue Reading →

US Home Prices show modest 0.3 percent increase from June to July according to Federal Housing Finance Agency

By Dennis Norman, on September 22nd, 2009

Dennis Norman

By: Dennis Norman

Today the Federal Housing Finance Agency (FHFA) reported that U.S. home prices rose 0.3 percent on a seasonally-adjusted basis from June to July and are down 4.2 percent for the past year. Missouri is included by the FHFA in the West North Central division which was right on target with the US with an increase of 0.3 percent from June to July. Our region was only down 1.5 percent from last year according the report.

Many of the reports I’ve seen in the press on this are saying this is a sign of the Continue Reading →

Beware The False Bottom In Housing

By Dennis Norman, on August 28th, 2009

Charles Hugh Smith, Of Two Minds

By: Charles Hugh Smith:

In February 2007 I suggested a 4% mortgage delinquency rate could trigger a decline in the entire housing market. Since that proved prescient, we should revisit the analytic tool behind that call: the Pareto Principle.

There is a whiff of euphoria in the housing market, a heavily touted confidence that “the bottom is in.” It’s all roaring back–rising sales, multiple bids by anxious buyers, 3.5% down payments, low mortgage rates and the bonus of an $8,000 first-time home buyer credit (a gift from U.S. taxpayers). Continue Reading →