Fed Becomes Mammoth Secondary Player
The U.S. government now has a big hand in the secondary mortgage market -- with billions of dollars in agency mortgage-related assets recently traded. Meanwhile, a Wells Fargo & Co. unit inked a deal with a group of community banks, and a division of First American Corp. has launched a service that fixes errors on adjustable-rate loan portfolios.

The Department of Housing and Urban Development intends to sell an unsubsidized multifamily mortgage loan with no Federal Housing Administration insurance in a competitive, sealed-bid sale, a Federal Register Notice last month said.

A sale of the non-performing loan -- secured by a Columbus, Ohio, property -- was expected to close last week.
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Gov Biz Pushes Agency Issuance Higher
Agency issuances for mortgage-backed securities fell last year on conforming mortgages but more than doubled for government loans -- helping to push overall agency issuance higher.

Revised Appraisal Code Irks Brokers, Appraisers
Mortgage brokers are unhappy with the revised appraisal code announced for conforming loans -- which they say won't stop crooked appraisers from fraudulently inflating fair market values. Appraisers, meanwhile, question the use of appraisal management companies and computer generated values.

Fannie Activity Deteriorates
New business acquisitions again sank to their lowest level on record last month at Fannie Mae -- contrasting results at secondary rival Freddie Mac. Fannie's delinquency worsened as its book of business declined.

Fannie Increases Fees
Fannie Mae has increased its pricing adjustments on some programs.

Institutional Musical Chairs
Several institutions -- including Freddie Mac, SunTrust Banks Inc. and Redwood Trust Inc. -- have recently shaken up their top management. Even the primary trade group for the mortgage industry announced executive changes.

The Loan Mod Ledger
As conforming loan modification programs grow, so do the number of companies that prey on delinquent borrowers and the number of firms that exploit lender compliance errors.

New Appraisal Guidelines Issued
A new set of appraisal guidelines and procedures has been unveiled for conforming mortgages. The new guidelines aim to prevent originators and mortgage brokers from pressuring appraisers to inflate fair market values.

Freddie Purchases, Portfolio Higher
Aside from worsening delinquency, Freddie Mac had strong activity last month.

Fannie Tightens DTIs, Credit Scores
Fannie Mae will begin requiring minimum credit scores on government mortgages it acquires. In addition, the secondary lender has instituted a new maximum debt-to-income ratio on manually underwritten conventional loans.