Are Fannie Mae And Freddie Mac REALLY Profitable? Freddie Mortgage Rate Rises to 4.58%

Confounded Interest ^ | 08/22/2013 | Anthony B. Sanders

[whitedog57]

On the heels of the news that Wells Fargo is cutting 2,300 workers from the mortgage production operations, we have learned from the Office of Mortgage Settlement Oversight that consumer mortgage relief has totaled $51 billion, averaging $80,000 per borrower.

Now THAT’s a Big Twinkie!

Here are the consumer relief highlights from the National Mortgage Settlement (NMS):

Program to Date: March 1, 2012 – June 30, 2013

• 643,726 borrowers benefited from some type of Consumer Relief totaling $51.332 billion, which, on average, represents about $79,742 per borrower. This figure includes both completed Consumer Relief and active first lien trial modifications as of June 30, 2013.

• 393,742 borrowers received some type of Consumer Relief (a permanent or trial modification, an extinguishment, or refinancing assistance) to help them retain their homes, which amounts to $28.801 billion, averaging approximately $73,148 per borrower.

• 95,582 borrowers successfully completed a first lien modification and received $10.399 billion in loan principal forgiveness, averaging approximately $108,795 per borrower.

• 1,595 borrowers are in active first lien trial modifications as of June 30, 2013, the total principal value of which is $151.69 million. This represents potential relief of about $95,104 per borrower if the trials are completed.

• Second lien modifications and extinguishments were provided to 223,168 borrowers, representing approximately $15.312 billion in total relief. The average amount of relief for borrowers whose second liens were modified or extinguished was approximately $68,611.

• Banks refinanced 73,397 home loans with an average unpaid principal balance of $226,285, reducing the average annual interest rate by approximately 2.25 percent. The total estimated benefit to borrowers from refinancing over the average life of the loan is approximately $2.939 billion. On average, each borrower will save approximately $425 in interest payments each month.

• 184,397 borrowers had either a short sale completed during this period or the lender accepted a deed in lieu of foreclosure, waiving any unpaid principal balance in either case. The total amount of this type of relief was approximately $20.902 billion, or about $113,354 per borrower.

• Through the various other Consumer Relief programs outlined in the Settlement documents, the banks provided $1.628 billion in relief to 65,587 borrowers. The average relief of these other programs amounts to approximately $24,828 per borrower.

Here are the charts:

Program to Date Consumer Relief Charts

Second Quarter 2013 Consumer Relief Charts

Despite the $80,000 per borrower “relief” (aka, wealth transfer), Attorney General Eric Holder wants MORE blood. He wants to prosecute those responsible for the housing bubble and financial market crash. Except, of course, for national home ownership policies like the Community Reinvestment Act (CRA) or HUD’s National Homeownership Strategy (NHS) that encouraged/forced lenders to make risky loans. nhsdream2

And Sen. Elizabeth Warren (D-Mass.) sent a letter to Attorney General Eric Holder Wednesday questioning whether a major government settlement with the nation’s largest mortgage companies is merely a way to absolve banks of malpractice under a “timid enforcement strategy.”

Really Senator Warren? $51.332 billion in wealth transfers averaging $79,742 per borrower is “timid?” And Senator Warren still clings to the notion that reckless government housing policies had nothing to do with the housing bubble and financial crisis.

I will be meeting with Senate staffers on the future of housing finance on Wednesday. I will bring up the role of government housing policy and the financial crisis.

[whitedog57]

Fannie Mae must go away!

[humblegunner]

Fannie Mae must go away!

You should post the charts today!

Yes, you stole 'em, that's your way...

But posting pix is A-OK.