Tag Archives: Freddie Mac

Mortgage Translations Clearinghouse Launched to Help Borrowers with English Language Barriers

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Washington, D.C. – Oct. 15, 2018 (PRNewswire) The Federal Housing Finance Agency (FHFA), Freddie Mac (OTCQB:FMCC), and Fannie Mae (OTC Bulletin Board: FNMA) together announce the launch of Mortgage Translations – a centralized clearinghouse of online resources to assist lenders, servicers, housing counselors, and other real estate professionals in serving limited English proficient (LEP) borrowers.

Federal Housing Finance Agency FHFA Logo

LEP borrowers make up a growing share of today’s mortgage market – a trend that is likely to continue in the coming decades – and lenders and other mortgage market participants are in need of tools to help them serve these consumers. FHFA, Freddie Mac, and Fannie Mae collaborated extensively with industry experts, consumer advocates, and other government agencies in developing the online collection of mortgage documents, educational materials, and a new online Spanish-English glossary produced by the Consumer Financial Protection Bureau in collaboration with FHFA and the Enterprises. The glossary is expected to be particularly helpful in standardizing translations across the mortgage industry.

The first phase of the launch consists of Spanish-language documents. According to the U.S. Census, persons who speak Spanish as their primary language comprise more than 60 percent of the LEP population in the U.S. Resources in four other languages commonly spoken by LEP households – Chinese, Vietnamese, Korean, and Tagalog – will be added in the coming years.

“FHFA is proud to collaborate with Freddie Mac and Fannie Mae and so many others on this important initiative to help address language barriers that impede access to mortgage credit,” said Janell Byrd-Chichester, chief of staff at FHFA. “The Mortgage Translations clearinghouse is one part of a Language Access Multi-Year Plan and includes a number of meaningful resources to help mortgage industry professionals reach a broader range of borrowers.”

“Freddie Mac is pleased to work with FHFA and Fannie Mae on this language access multi-year plan, as it demonstrates our commitment to help make home possible for today’s borrower and the borrower of the future,” said Danny Gardner, senior vice president of single-family affordable lending and access to credit at Freddie Mac. “The materials included on this website will provide lenders, servicers, real estate professionals and housing counselors with tools to better assist, educate and engage LEP borrowers throughout the mortgage process.”

“Fannie Mae is excited to partner with FHFA and Freddie Mac to launch this central source of translated documents,” said Jonathan Lawless, vice president for product development and affordable housing at Fannie Mae. “This online resource will educate, engage and better assist LEP borrowers when shopping for a mortgage.”

About FHFA
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.2 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.

About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae, YouTube, and LinkedIn.

Statement from NAR President Mendenhall Regarding Fannie, Freddie Profits

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Washington, D.C. – May 2, 2018 (nar.realtor) Government-sponsored enterprises Fannie Mae and Freddie Mac both reported multi-billion dollar profits this week. NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty issued the following statement calling on the Federal Housing Finance Agency to reduce the fees the GSEs charge to lenders and homebuyers:

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“The National Association of Realtors® urges government-sponsored enterprises Fannie Mae and Freddie Mac to reduce the credit risk guarantee fees, or g-fees, charged to lenders and the upfront loan leveling pricing adjustments, or LLPAs, charged to consumers.

“FHFA’s current fee policies are resulting in billions of dollars of profits for the enterprises. Realtors® believe that fees should reflect the enterprises’ newly lower corporate tax rate, preserve the current target rate of return and be used only to protect taxpayers against enterprise-related losses. High fees should not be used to pay Wall Street-like returns to the U.S. Treasury and fund general government spending.

“We continue to urge (link is external) FHFA to act quickly and reduce g-fees and LLPAs, as continued high fees only reduce access to mortgage credit and raise the costs of homeownership at a time when home prices and mortgage rates are also rising.”

The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Changes to Fannie Mae and Freddie Mac Could Cost Borrowers Additional $400 in Monthly Mortgage Payments

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Government-sponsored enterprises play a major role in making home loans affordable for Americans; Zillow analysis examines mortgage costs if reform reduced access to government-backed mortgages

Seattle, WA – March 9, 2018 (PRNewswire) Proposed reforms to the government-sponsored enterprises (GSEs) that guarantee the majority of U.S. home loans could drive up monthly housing costs and diminish housing affordability for many Americans, according to Zillow®.

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Congress is considering changes to Fannie Mae and Freddie Mac to reduce the risk to taxpayers if the housing market crashes again. The GSEs, which guarantee a majority of all home loans against defaults, have been under government conservatorship since 2008, when they required more than $150 billion in taxpayer funds as a result of foreclosures during the housing crisis.

But a Zillow analysis shows that potential changes would cost borrowers as much as $400 a month in mortgage costs.

The guarantee from Fannie and Freddie is thought to keep interest rates for 30-year fixed-rate mortgages low, and housing relatively affordable. If that guarantee is changed, the typical American borrower could be facing shorter loan durations or higher rates. In this analysis, Zillow examined how alternatives to the traditional 30-year mortgage would affect borrowers’ monthly costs, using current home values and mortgage rates.

  • Shorter-term loans: The typical borrower would pay an additional $390 each month on the median U.S. home for a 15-year fixed-rate mortgage instead of a 30-year loan.
  • Higher rates similar to current jumbo loans(i): A 30-year non-conforming loan would cost borrowers about $20 more per month for the typical U.S. home. Jumbo, or non-conforming, loans are currently not guaranteed by GSEs.

“Some GSE reform proposals could lead to the end of the 30-year mortgage as we know it, which has long been the bedrock for financing homeownership in America,” said Zillow Senior Economist Aaron Terrazas. “If monthly payments do rise and, more importantly, stay elevated, at some point we’d expect home prices to come down a bit in response to this decreased purchasing power, and some long-time owners could opt not to sell to preserve their smaller monthly payments. A shorter loan period would mean the lifetime cost of the home is lower, and some households may be able to absorb the extra monthly cost on their mortgage. But in the nearer term, first-time homebuyers or buyers on the margin could feel a real pinch as homeownership becomes significantly less affordable.”

Until actual changes are signed into law, it is difficult to know what the typical loan will look like following GSE reform. To see the impact of other interest rates and loan durations on mortgage payments, visit Zillow Research: https://www.zillow.com/research/mortgage-payments-rates-products-18773/

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Zillow
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.

(i) The current market for jumbo loans is relatively small and skewed toward the wealthy. The exact terms of today’s jumbo loans may not scale to the larger housing market.