The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will raise the guarantee fees (g-fees) charged on single-family mortgages by an average of 10 basis points. The fee increase will be effective 11.01.2012 for loans sold for cash, and 12.01.2012 for loans exchanged for mortgage-backed securities. Fannie Mae and Freddie Mac will work directly with lenders to implement these changes. Click here for more information.

Regions Bank has set a goal to provide more than $1 billion of relief to homeowners through the Federal Housing and Finance Administration’s Home Affordable Refinance Program (HARP) in 2012. Under the revised HARP program, homeowners with Fannie Mae or Freddie Mac-owned loans, including those who have been unable to refinance due to declining property values, may qualify for relief. Click here for more information.

The Federal Housing Finance Agency announced the first pilot transaction under the Real Estate-Owned (REO) Initiative, targeted to the hardest-hit metropolitan areas - Atlanta, Chicago, Las Vegas, Phoenix, and parts of Florida. Prequalified investors will be able to submit applications to demonstrate their financial capacity, experience, and specific plans for purchasing Fannie Mae-owned foreclosed properties with the requirement to rent the purchased properties for a specified number of years. Click here for more information.

Regions Bank is now a participant in the expanded Home Affordable Refinance Program (HARP) to help homeowners refinance their mortgages. HARP allows any participating institution to refinance a mortgage owned by Fannie Mae or Freddie Mac. Program enhancements include eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and removal of the 125% LTV cap, allowing more homeowners to qualify for assistance. Click here for more information.

The Federal Housing Finance Agency, along with Fannie Mae and Freddie Mac announced changes to the Home Affordable Refinance Program in an effort to help more eligible borrowers refinance into lower rates. Program enhancements include removing the 125% LTV ceiling for fixed-rate mortgages and extending the end date until 12.31.2013. Click here for more information.

Fannie Mae has announced new standards for Adjustable Rate Mortgages (ARMs). Short-term ARMs will now require borrowers to qualify based on the fully indexed rate. Fannie Mae will continue to offer interest-only products; however qualification will prove more difficult under the new standards such as lower LTVs and higher minimum FICO requirements. For more details on this and other vital industry news, please see our Monthly Retail Mortgage Loan Bulletin.