Report: GSEs Purchased Risky Loans Despite Red Flags

first_imgHome / Daily Dose / Report: GSEs Purchased Risky Loans Despite Red Flags Appraisals Fannie Mae FHFA Freddie Mac 2014-02-06 Krista Franks Brock Report: GSEs Purchased Risky Loans Despite Red Flags Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Appraisals Fannie Mae FHFA Freddie Mac The Best Markets For Residential Property Investors 2 days ago Related Articles in Daily Dose, Featured, Government, Headlines, News, Secondary Market Servicers Navigate the Post-Pandemic World 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribecenter_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago February 6, 2014 976 Views About Author: Krista Franks Brock Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Law Firm Barrett Daffin Frappier Turner & Engel Recruits New Partners Next: Expired Tax Relief Could Increase Pressure on Troubled Borrowers About four years after the Federal Housing Finance Agency (FHFA) directed the GSEs to develop a uniform collateral data portal, the Office of the Inspector General of the Federal Housing Finance Agency (FHFA OIG) finds the portal is not being used to its potential, and the GSEs continue to purchase loans with red flags.After “extensive” development and testing, the OIG concluded in a recent audit, “more remains to be done to use the portal’s data to minimize the risk of loss.”Both enterprises continue to purchase loans despite warning messages from the portal, according to a report the OIG released Thursday.Fannie Mae purchased 56,000 loans for a total of $13 billion from January through June of last year despite warnings from the portal indicating the loans might not meet the GSE’s underwriting requirements, according to the OIG.Meanwhile, Freddie Mac purchased 29,000 loans for a total of $6.7 billion from June through September despite warnings regarding the properties’ valuations, according to the OIG.Each of the 56,000 loans purchased by Fannie Mae came with between one and nine caution messages regarding the loan’s quality.The messages dealt with such issues as confirmation of repairs and “unauthorized use of single-family loan funds,” according to the OIG, and in each case the warning message was disregarded using an automatic override.Fannie Mae purchased the loans and “focused its efforts on reviewing the loans for conformance with its requirements after it bought them,” according to the OIG.Fannie Mae reportedly “did not require lenders to explain or resolve potential problems ranging from formatting issues to violations of its underwriting requirements,” according to the OIG.Similarly, Freddie Mac purchased more than 29,000 loans despite the portal’s warning that “either no property value could be provided or the value of the property was in question,” according to the OIG. In fact, in some cases the portal could not even verify that the address existed.Like Fannie Mae, Freddie Mac’s approach was to override the warnings and review the loans for issues after purchasing them.In fact, Fannie Mae and Freddie Mac both claimed they did not want to “burden lenders with having to respond to messages,” according to the OIG.The OIG audit also detected 414,000 instances in which the portal found that an appraiser’s license could not be verified.The “uniform collateral data portal is intended to improve appraisal data quality and risk management for the Enterprises by collecting appraisal data to help them make informed decisions about the loans they buy,” the OIG reported.“However, as demonstrated by the results of this audit, these goals are at risk of not being achieved,” the OIG stated.On the bright side, the audit did cause the GSEs to consider 23 loans totaling $3.4 million for repurchase.last_img read more

Wanted: your drive and commitment

first_imgWanted: your drive and commitmentOn 1 Jun 2000 in Personnel Today Previous Article Next Article Comments are closed. Makea real difference to the skills of your future workforce by getting involved inthe new Learning and Skills Council, entreats Nick Reilly, chairman andmanaging director of VauxhallAtsome time most businesses will find they cannot get applicants with the rightskills for the jobs they need to fill. Oftenthey find that young people lack the basics – or have qualifications which bearlittle relevance to the skills they need in the workplace.Whyare we in this situation? It is partly because presently businesses are notfully able to influence in an effective way how public funding is targeted inthe area of post-16 education and training.Nowis the time to change this. The Government is radically changing the way itfunds post-16 learning to give business a new and central role. FromApril 2001, the new Learning and Skills Council (LSC) will take on the currentTraining and Enterprise Council (Tec) network role in funding work-basedtraining (which includes Modern Apprenticeships). PowerfulTheLSC will also have responsibility for funding FE colleges and local authoritiesin respect of school sixth forms. It will therefore be a powerful public bodywith an annual budget of over £6bn. However,most decisions taken by the LSC will be made at local level, by its 47 local arms,each of which will have boards made up of at least 40 per cent business peopleSowhy should businesses get involved? The success of the Learning and SkillsCouncil will depend to a large extent on the business people who will sit onthe national and local boards. Weare looking for talented and motivated people from a wide variety of businessbackgrounds – and not just large employers. Small businesses are the backboneof our economy and their voice must be heard too.Thelocal Learning and Skills Councils will take important decisions about post-16education and training in their own area. Labourmarkets are predominantly local; and most small and medium-sized companiesrecruit directly from this local market for all their staff. EffectivetrainingItis business people who understand the needs of the local economy, what skillsgaps there are, and what type of effective training is required.Developingand improving links between business and schools will be another way that thelocal LSCs will drive up the availability and quality of training for youngpeople. Businesssupport for schools can have a huge positive impact on raising standards,developing key skills and preparing young people for adult and working life.Thesuccess of our businesses is tied in with the success of the Learning andSkills Council. Iwant to encourage people with a proven track record in business to play theirpart as board members.Thestructure of a powerful new organisation is being put in place. We must makesure that the people who take up the positions that have been reserved forbusiness, make the most of that opportunity.Iurge business people to apply for board positions on the new Learning andSkills Council, and supply the drive and commitment to making learning work forour economy in the future.NickReilly chairs a group of business people set up to encourage businessinvolvement in the new Learning and Skills Council. Information on how toapply, and electronic application forms, are available at www.getonboard.org.uk or telephone theLSC appointments team on 0114 259 3716. Related posts:No related photos.last_img read more

How getting your employees involved can help to grow your CU’s brand

first_imgSocial Media has become a mainstay in the way we communicate today. Recent statistics on SocialMediaToday.com, states that there are 1.9 billion unique monthly users on Facebook; 1 billion on YouTube; 600 million on Instagram; 317 million on Twitter; 106 million on LinkedIn and millions of users joining many other channels monthly. With these numbers, there are very few people who would argue against the fact that social media has become an essential means of communicating. The magnitude of this is emphasized when we experience the impact of information “going viral”. In seconds, the world is watching.There are still some people, however, who are not sure of the impact and role that social media plays in business. Many are sold on the fact that it is necessary to be involved in the space but they have not committed to investing the time and the energy that is required to make it work for their brands. This is due in part to them not knowing where to start and the fact that it all seems so costly and high maintenance.The power of social mediaWith small marketing budgets and limited human resources, why should a credit union get involved in social media? Based on recent statistics from the Pew Research Center “seven-in-ten Americans use social media”. So, there is a big chance that your members, prospective members, partners, competitors and vendors are all there and that’s where you need to meet them. Many companies have used these channels to not only build awareness but gain insights from their engagement with existing and prospective customers that have allowed them to build brand loyalty and ultimately, brand equity. In a survey conducted recently (found on smartinsights.com) to find out how social media ranks in comparison to other channels for B2B companies; social media ranked as the most effective channel for strengthening thought leadership (88%); deepening customer relationships (79%); raising brand awareness (91%) and developing brand positioning (94%). If these are some of your business goals, it’s hard to build a case for not being a part of it. continue reading » 35SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more