More FNMA Book Cooking
We Nattered last week about Fannie's differences with their auditor Deloitte & Touche LLP ...
Friday Fannie announced a new SVP and Cheif Audit Executive...
Jacqueline K. Wagner will join the company as Senior Vice President and Chief Audit Executive, reporting directly to the Audit Committee of the Board of Directors.
OMG & WTF... Feb 27th, a new book cooking method, the HomeSaver Advance Initiative,
a program where Fannie takes a delinquent mortgage loan and replaces the delinquent part
with an unsecured loan in order to avoid the buyback and mark to market valuation consequences. No I am NOT kidding...
From the press release... "HomeSaver Advance will help Fannie Mae streamline its loss mitigation efforts and offer loan servicers a new way to cope with a delinquent loan,
HomeSaver Advance will provide Fannie Mae with an enhanced ability to manage credit risk and conserve capital during the housing downturn.
We recently introduced a new HomeSaver Advance initiative, which is a loss mitigation tool that we began implementing in the first quarter of 2008.
HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan,
allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans.
By permitting qualified borrowers to cure their payment defaults without requiring that we purchase the loans from the MBS (mortgage-backed security) trusts in order to modify the loans,
this loss mitigation tool may reduce the number of delinquent mortgage loans that we purchase
from MBS trusts in the future and the fair value losses we record in connection with those purchases".
Friday Fannie announced a new SVP and Cheif Audit Executive...
Jacqueline K. Wagner will join the company as Senior Vice President and Chief Audit Executive, reporting directly to the Audit Committee of the Board of Directors.
OMG & WTF... Feb 27th, a new book cooking method, the HomeSaver Advance Initiative,
a program where Fannie takes a delinquent mortgage loan and replaces the delinquent part
with an unsecured loan in order to avoid the buyback and mark to market valuation consequences. No I am NOT kidding...
From the press release... "HomeSaver Advance will help Fannie Mae streamline its loss mitigation efforts and offer loan servicers a new way to cope with a delinquent loan,
HomeSaver Advance will provide Fannie Mae with an enhanced ability to manage credit risk and conserve capital during the housing downturn.
We recently introduced a new HomeSaver Advance initiative, which is a loss mitigation tool that we began implementing in the first quarter of 2008.
HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan,
allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans.
By permitting qualified borrowers to cure their payment defaults without requiring that we purchase the loans from the MBS (mortgage-backed security) trusts in order to modify the loans,
this loss mitigation tool may reduce the number of delinquent mortgage loans that we purchase
from MBS trusts in the future and the fair value losses we record in connection with those purchases".
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