House finance regulator mulls action on “eminent domain” mortgage seizures

Alfred Pollard, FHFA’s general counsel, said in a memorandum posted on the agency’s website on Thursday that the uncertainty surrounding the use of eminent domain raises several issues, including its possible impact on the mortgage market and potential losses that Fannie Mae and Freddie Ma could incur. “There is a rational basis to conclude that the use of eminent domain by localities to restructure loans for borrowers that are “underwater” on their mortgages presents a clear threat to the safe and sound operations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks as provided in federal law,” Pollard wrote. The FHFA is weighing its legal options in any municipalities that approve loan restructuring programs. The agency is also considering preventing Fannie and Freddie from purchasing loans in those communities using eminent domain as a strategy for restructuring distressed mortgages.

Five Takeaways on Housing-Finance Reform From Obama’s Town Hall

(Matt York / Associated Press / August 6, 2013) Also By The Times editorial board August 8, 2013 President Obama this week joined lawmakers from both parties in calling for Congress to wind down Fannie Mae and Freddie Mac , the privately owned but government-backed companies that supply most of the funding for home mortgages in this country. There is now a clear consensus in Washington in favor of shrinking the government’s role in housing finance. The tough question that remains, though, is how far to go. Fannie and Freddie have bought or guaranteed nearly half of the home loans outstanding in the United States.

Finance Ministry working on additional steps to contain rupee fall

After five years, though, there is movement toward reforming a big part of the system. At the moment, the market for new mortgages is almost entirely government-backed through Fannie Mae, Freddie Mac or the Federal Housing Administration. In Phoenix on Tuesday , Mr. Obama rightly argued that the situation must change, that private finance should again be the backbone of the system. He supported slowly but steadily winding down Fannie and Freddie, so-called government-backed enterprises meant to drive investment to mortgages, and replacing them with a more modest government role in the market.

Fix the mortgage finance system

The new measures being considered by the Finance Ministry are in addition to steps taken recently by the Reserve Bank to tighten liquidity and curb volatility in the rupee, which touched a life-time intra-day low of 61.80 to the dollar on August 6. The RBI yesterday announced it would auction Rs 22,000 crore of bonds every Monday to suck out liquidity and check speculation in the forex market. Earlier, the central bank had raised the Marginal Standing Facility rate to make borrowing from the RBI expensive for banks. The RBI and the government have also taken steps to curtail imports of gold.

Housing finance, beyond Fannie and Freddie

A housing tax credit that helps

When it comes to hitting the road, the XFR-S can go from 0 to 62mph in 4.4 seconds and has a top speed of 186mph. Car Loan 4U Director Ryan Dignan, comments: Theres tough competition out there when you look at the likes of the BMW M5 and the Mercedes-Benz E63 AMG, and the XFR-S would appear to be Jaguars answer. Its certainly a powerful saloon, which is both fast and stylish, and comes complete with features such as adjustable sports seats and a bespoke front bumper. You also get a host of equipment including 20-inch alloy wheels, carbon-fibre rear diffuser and 17-speaker stereo. Motorists looking to get their hands on a new or used Jaguar might want to consider their car finance solutions and as leading car finance providers, Car Loan 4U can help provide expert advice.

Car finance experts Car Loan 4U comments on the Jaguar XFR-S

The government doesnt comment on press speculation, Konrad Niklewicz, a spokesman for Tusk, said by phone from Warsaw. Tusks party has fallen behind the opposition Law and Justice in opinion polls as the government struggles to revive the economy, which is set to growth at the slowest pace since the 1990s this year. Rostowski last month announced plans to widen this years budget deficit and suspend rules limiting fiscal stimulus to aid recovery. The cabinet is also working to overhaul the countrys privately-managed pension funds to reduce public debt. We are in a middle of budget revision and the decision about the shape of the pension reform, Piotr Kalisz , chief economist for Poland at Citigroup Inc., said by phone from Warsaw today.

Polish Premier Mulls Dismissing Finance Minister, RMF Reports

While most consumers may not be that familiar with the companies, they currently play a huge role keeping borrowing costs low for homeowners. Thanks to the governments massive backstops for both companies, they also have kept mortgage markets running smoothly throughout the housing bust, allowing homeowners to have relatively easy access to 30-year, fixed-rate mortgages, which arent widely available in other countries. So what does Mr. Obama plan to do with the companies?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s