MCLEAN, Va., May 8, 2012 /PRNewswire/ – Freddie Mac (OTC: FMCC) released the results of its first quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house.

News Facts

• In the first quarter of 2012, 79 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table. Of these borrowers, 58 percent maintained about the same loan amount, and 21 percent of refinancing homeowners reduced their principal balance; the share of borrowers that kept about the same loan amount was the highest in the 26-year history of the analysis.
• “Cash-out” borrowers, those that increased their loan balance by at least five percent, represented 21 percent of all refinance loans; the weighted average cash-out share during the 1985 to 2008 period was 50 percent.
• The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.5 percentage points, or a savings of about 27 percent in interest rate, the largest percent reduction recorded in the 27 years of analysis. Over the first year of the refinance loan life, the median borrower will save about $ 2,900 in interest payments on a $ 200,000 loan.
• The net dollars of home equity converted to cash as part of a refinance, adjusted for inflation, was at the lowest level in nearly 17 years (since the third quarter of 1995). In the first quarter, an estimated $ 5.3 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, down from $ 7.0 billion in the fourth quarter and substantially less than during the peak cash-out refinance volume of $ 83.7 billion during the second quarter of 2006.
• Among the refinanced loans in Freddie Mac’s analysis, the median prior loan life was 4.3 years. One-half of the loans that were paid-off had been in place from between three and seven years, that is, had been originated between 2005 and 2009.

Quotes

Attributed to Frank Nothaft, Freddie Mac vice president and chief economist:

• “The typical borrower who refinanced reduced their interest rate by about 1.5 percentage points. On a $ 200,000 loan, that translates into saving about $ 2,900 in interest during the next 12 months.  Fixed-rate mortgage rates hit new lows during March, with 30-year product averaging 3.95 percent and 15-year averaging 3.20 percent that month, according to our Primary Mortgage Market Survey^®.
• “The enhancements to HARP announced in October, such as removing the maximum loan-to-value limit, are beginning to show up in additional refinance volume during the first quarter.  HARP loans were 20 percent of Freddie Mac’s refinance fundings during the first quarter, the highest share since HARP’s inception.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac

Cash-out Refinance Analyses Information

These estimates come from a sample of properties on which Freddie Mac has funded two successive conventional, first-mortgage loans, and the latest loan is for refinance rather than for purchase. The analysis does not track the use of funds made available from these refinances. The analysis also does not track loans paid off in entirety, with no new loan placed.

• Quarterly Cash-Out Statistics [XLS]
• Quarterly Cash-Out Volume [XLS]

Related Links

Current and Previous Cash-Out Refinance information

Freddie Mac House Price Index (FMHPI (SM))

Primary Mortgage Market Survey (PMMS®)

Average Mortgage Rate Outstanding

Press Release Archives

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

For further information: Chad Wandler, +1-703-903-2446, Chad_Wandler@freddiemac.com

Freddie Mac News Releases (Housing and Economic Research)

HUD Press Releases

MCLEAN, Va., May 14, 2012 /PRNewswire/ — In the first quarter of 2012, fixed-rate loans accounted for more than 95 percent of refinance loans, based on the Freddie Mac (OTC: FMCC) Quarterly Product Transition Report released today. Refinancing borrowers clearly preferred fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or a fixed-rate.

News Facts

• Of borrowers who refinanced during the first quarter of 2012, 31 percent reduced their loan term by paying off a 30-year loan and replacing it with a 20-year, 15-year, or other shorter-term loan.  In addition, 66 percent of borrowers kept the same term as the loan that they had paid off.
• Sixty-eight percent of borrowers who had a hybrid ARM chose a fixed-rate loan during the first quarter, the highest share since the first quarter of last year, while the remaining 32 percent chose to refinance into the same type of product.  

Quotes
Attributed to Frank Nothaft, Freddie Mac vice president and chief economist:

• “Fixed mortgage rates averaged 3.92 percent for 30-year loans and 3.19 percent for 15-year product during the first quarter in Freddie Mac’s Primary Mortgage Market Survey^®, well below long-term averages. The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.1 percent during the first quarter of 2012. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.
• “Compared to a 30-year fixed-rate mortgage, the interest rate on a 15-year fixed was about three-quarters of a percentage point lower during the first quarter. For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. Further, under the enhanced Home Affordable Refinance Program—HARP—announced by FHFA on October 24, 2011, certain risk-based fees are waived for HARP borrowers who refinance into shorter-term loans.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac

Quarterly Product Transition Information 
These estimates come from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase. Some loan products, such as 1-year ARMs and balloons, are based on a small number of transactions. During the first quarter of 2012, the refinance share of applications averaged 81 percent in Freddie Mac’s monthly refi survey, and the ARM share of applications was 6 percent in Freddie Mac’s monthly ARM survey, which includes purchase-money as well as refinance applications.

• Quarterly Product Transition Statistics

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

Related Links  
FreddieMac.com  
Economic & Housing Research    
Primary Mortgage Market Survey (PMMS^®)    
Primary Mortgage Market Survey® Archives   
Bureau of Economic Analysis   
Refi & ARM Share Data  
http://www.freddiemac.com/news/finance/refi-arm_archives.htm

SOURCE Freddie Mac

For further information: Chad Wandler, +1-703.903.2446, Chad_Wandler@freddiemac.com

Freddie Mac News Releases (Housing and Economic Research)

HUD, HUD INSPECTOR GENERAL AND U.S. ATTORNEY ANNOUNCE
$ 202 MILLION SETTLEMENT WITH DEUTSCHE BANK AND MORTGAGEIT
Civil Fraud case alleged reckless mortgage lending and false claims

Preet Bharara, the United States Attorney for the Southern District of New York, Stuart F. Delery, the Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice, Helen Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and David A. Montoya, Inspector General of HUD, announced today that the United States has settled a civil fraud lawsuit against DEUTSCHE BANK AG, DB STRUCTURED PRODUCTS, INC., DEUTSCHE BANK SECURITIES, INC. (collectively “DEUTSCHE BANK” or the “DEUTSCHE BANK defendants”) and MORTGAGEIT, INC. (“MORTGAGEIT”).

The Government’s lawsuit, filed May 3, 2011, sought damages and civil penalties under the False Claims Act for repeated false certifications to HUD in connection with the residential mortgage origination practices of MORTGAGEIT, a wholly-owned subsidiary of DEUTSCHE BANK AG since 2007. The suit alleges approximately a decade of misconduct in connection with MORTGAGEIT’s participation in the Federal Housing Administration’s (“FHA’s”) Direct Endorsement Lender Program (“DEL program”), which delegates authority to participating private lenders to endorse mortgages for FHA insurance. Among other things, the suit accused the defendants of having submitted false certifications to HUD, including false certifications that MORTGAGEIT was originating mortgages in compliance with HUD rules when in fact it was not. In the settlement announced today, MORTGAGEIT and DEUTSCHE BANK admitted, acknowledged, and accepted responsibility for certain conduct alleged in the Complaint, including that, contrary to the representations in MORTGAGEIT’s annual certifications, MORTGAGEIT did not conform to all applicable HUD-FHA regulations.

MORTGAGEIT also admitted that it submitted certifications to HUD stating that certain loans were eligible for FHA mortgage insurance when in fact they were not; that FHA insured certain loans endorsed by MORTGAGEIT that were not eligible for FHA mortgage insurance; and that HUD consequently incurred losses when some of those MORTGAGEIT loans defaulted. The defendants also agreed to pay $ 202.3 million to the United States to resolve the Government’s claims for damages and penalties under the False Claims Act. The settlement was approved today by United States District Judge Lewis Kaplan.

Manhattan U.S. Attorney Preet Bharara stated: “MORTGAGEIT and DEUTSCHE BANK treated FHA insurance as free Government money to backstop lending practices that did not follow the rules. Participation in the Direct Endorsement Lender program comes with requirements that are not mere technicalities to be circumvented through subterfuge as these defendants did repeatedly over the course of a decade. Their failure to meet these requirements caused substantial losses to the Government – losses that could have and should have been avoided. In addition to their admissions of responsibility, Deutsche Bank and MortgageIT have agreed to pay damages in an amount that will significantly compensate HUD for the losses it incurred as a result of the defendants’ actions.”

Acting Assistant Attorney General Stuart F. Delery stated: “This is an important settlement for the United States, both in terms of obtaining substantial reimbursement for the FHA insurance fund for wrongfully incurred claims, and in obtaining the defendants’ acceptance of their role in the losses they caused to the taxpayers.”

HUD General Counsel Helen Kanovsky stated: “This case demonstrates that HUD has the ability to identify fraud patterns and work with our partners at the Department of Justice and U.S. Attorney’s Offices to pursue appropriate remedies. HUD would like to commend the work of the United States Attorney for the Southern District of New York in achieving this settlement, which is a substantial recovery for the FHA mortgage insurance fund. We look forward to continuing our joint efforts with the Department of Justice and the SDNY to combat mortgage fraud. The mortgage industry should take notice that we will not sit silently by if we detect abuses in our programs.

HUD Inspector General David A. Montoya stated: “We expect every Direct Endorsement Lender to adhere to the highest level of integrity and accountability. When the combined efforts and attention of the Department of Justice, HUD, and HUD OIG are focused upon those who fail to exercise such integrity in connection with HUD programs, the end result will be both unpleasant and costly to the offending party.

The following allegations are based on the Complaint and Amended Complaint (the “Complaint”) filed in Manhattan federal court by the Government in this case:

Between 1999 and 2009, MORTGAGEIT was a participant in the DEL program, a federal program administered by the FHA. As a Direct Endorsement Lender, MORTGAGEIT had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a Direct Endorsement Lender approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD for the costs associated with the defaulted loan, which HUD must then pay. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. Direct Endorsement Lenders are therefore required to follow program rules designed to ensure that they are properly underwriting and endorsing mortgages for FHA insurance and maintaining a quality control program that can prevent and correct any deficiencies in their underwriting. These requirements include maintaining a quality control program, pursuant to which the lender must fully review all loans that go into default within the first six payments, known as “early payment defaults.” Early payment defaults may be signs of problems in the underwriting process, and by reviewing early payment defaults, Direct Endorsement Lenders are able to monitor those problems, correct them, and report them to HUD. MORTGAGEIT failed to comply with these basic requirements.

As the Complaint further alleges, MORTGAGEIT was also required to execute certifications for every mortgage loan that it endorsed for FHA insurance. Since 1999, MORTGAGEIT has endorsed more than 39,000 mortgages for FHA insurance, and FHA paid insurance claims on more than 3,200 mortgages, totaling more than $ 368 million, for mortgages endorsed for FHA insurance by MORTGAGEIT, including more than $ 58 million resulting from loans that defaulted after DEUTSCHE BANK AG acquired MORTGAGEIT in 2007. As alleged in the Complaint, a portion of those losses was caused by the false statements that the defendants made to HUD to obtain FHA insurance on individual loans. Although MORTGAGEIT had certified that each of these loans was eligible for FHA insurance, it repeatedly submitted certifications that were knowingly or recklessly false. MORTGAGEIT failed to perform basic due diligence and repeatedly endorsed mortgage loans that were not eligible for FHA insurance.

The Complaint also alleges that MORTGAGEIT separately certified to HUD, on an annual basis, that it was in compliance with the rules governing its eligibility in the DEL program, including that it conduct a full review of all early payment defaults, as early payment defaults are indicators of mortgage fraud. Contrary to its certifications to HUD, MORTGAGEIT failed to implement a compliant quality control program, and failed to review all early payment defaults as required. In addition, the Complaint alleges that, after DEUTSCHE BANK acquired MORTGAGEIT in January 2007, DEUTSCHE BANK managed the quality control functions of the Direct Endorsement Lender business, and had its employees sign and submit MORTGAGEIT’s Direct Endorsement Lender annual certifications to HUD. Furthermore, by the end of 2007, MORTGAGEIT was not reviewing any early payment defaults on closed FHA-insured loans. Between 1999 and 2009, the FHA paid more than $ 92 million in FHA insurance claims for loans that defaulted within the first six payments.

***

Pursuant to the settlement, MORTGAGEIT and the DEUTSCHE BANK defendants will pay the United States $ 202.3 million within 30 days of the settlement.

As part of the settlement, the defendants admitted, acknowledged, and accepted responsibility for certain misconduct. Specifically,

MORTGAGEIT admitted, acknowledged, and accepted responsibility for the following:

• MORTGAGEIT failed to conform fully to HUD-FHA rules requiring Direct Endorsement Lenders to maintain a compliant quality control program;
• MORTGAGEIT failed to conduct a full review of all early payment defaults on loans endorsed for FHA insurance;
• Contrary to the representations in MORTGAGEIT’s annual certifications, MORTGAGEIT did not conform to all applicable HUD-FHA regulations;
• MORTGAGEIT endorsed for FHA mortgage insurance certain loans that did not meet all underwriting requirements contained in HUD’s handbooks and mortgagee letters, and therefore were not eligible for FHA mortgage insurance under the DEL program; and
• MORTGAGEIT submitted to HUD-FHA certifications stating that certain loans were eligible for FHA mortgage insurance when in fact they were not; FHA insured certain loans endorsed by MORTGAGEIT that were not eligible for FHA mortgage insurance; and HUD consequently incurred losses when some of those MORTGAGEIT loans defaulted.
• The DEUTSCHE BANK defendants admitted, acknowledged, and accepted responsibility for the fact that after MORTGAGEIT became a wholly-owned, indirect subsidiary of DB Structured Products, Inc and Deutsche Bank AG in January 2007:
• The DEUTSCHE BANK defendants were in a position to know that the operations of MORTGAGEIT did not conform fully to all of HUD-FHA’s regulations, policies, and handbooks;
• One or more of the annual certifications was signed by an individual who was also an officer of certain of the DEUTSCHE BANK defendants; and
• Contrary to the representations in MORTGAGEIT’s annual certifications, MORTGAGEIT did not conform to all applicable HUD-FHA regulations.

* * *

The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating financial fraud, including mortgage fraud.

To date, the Office’s Civil Frauds Unit has brought four civil fraud lawsuits against major lenders under the False Claims Act alleging reckless residential mortgage lending. Three of the four cases have settled, and today’s settlement represents the third, and largest, settlement. On February 15, 2012, the Government settled its civil fraud lawsuit against CITIMORTGAGE, INC. for $ 158.3 million. On February 24, 2012, the Government settled its civil fraud suit against FLAGSTAR BANK, F.S.B. for $ 132.8 million. The Government’s lawsuit against ALLIED HOME MORTGAGE CORP. and two of its officers remains pending. With today’s settlement, the Government has achieved settlements totaling $ 493.4 million in the last three months. In each settlement, the defendants have admitted and accepted responsibility for certain conduct alleged in the Government’s Complaint. The Office’s Civil Frauds Unit is handling all three cases as part of its continuing investigation of reckless lending practices.

The Civil Frauds Unit works in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Mr. Bharara thanked HUD and HUD-OIG for their extraordinary assistance in this case. He also expressed his appreciation for the support of the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington, D.C.

Assistant U.S. Attorneys Lara K. Eshkenazi, Pierre G. Armand, and Christopher B. Harwood are in charge of the case.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

HUD Press Releases

MCLEAN, Va., April 19, 2012 /PRNewswire/ – Freddie Mac (OTC: FMCC) announces its highest-producing multifamily mortgage sellers of 2011. These are the lenders who transacted the most financing volume with Freddie Mac. Through these and other lenders, the company purchased more than $ 20 billion in loans last year, comprising 321,000 rental units, and resulting in about $ 14 billion in mortgage securitizations.

Quotes
Attribute to David Brickman, senior vice president of Freddie Mac Multifamily

• “It was an outstanding year of partnership with these lenders who make a difference in their communities everyday by providing loans for the growing apartment rental market.”
• “They achieved this status through hard work, persistence and a commitment to the industry. These lenders have hung in there during this challenging economic environment, and helped to keep much-needed credit flowing to the rental housing marketplace.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.  www.FreddieMac.com

SOURCE Freddie Mac

For further information: Patti Boerger, +1-703-903-2445, Patricia_Boerger@FreddieMac.com

Freddie Mac News Releases (Multifamily)

HUD ANNOUNCES AGREEMENT WITH NEBRASKA LANDLORD
TO SETTLE HOUSING DISCRIMINATION COMPLAINT
Resident injured after she was denied a promised accessible unit

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached a $ 22,500 settlement agreement with the owner and managers of at Cheyenne Villa Apartments, a 56-unit, HUD-assisted townhome complex in Sydney, Nebraska. The settlement resolves a complaint filed by a resident who uses a wheelchair and walker, who alleged that management the development failed to accommodate her request to transfer to the first available ground-floor unit. The resident also claimed that management denied requests for a parking space and a ramp to ease her access to her unit.

The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations that would allow a person with a disability to fully enjoy her home. Similarly, Section 504 of the Rehabilitation Act of 1973 prohibits providers of federally-assisted housing from denying housing to or discriminating against persons with disabilities.

“Persons with disabilities aren’t asking for special treatment when they request reasonable accommodations,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Ground-floor rooms, designated parking spaces, and ramps may be necessary for persons with disabilities to conduct everyday activities and gain independence in their daily living. HUD is committed to ensuring that housing providers, federally-assisted and otherwise, live up to their obligation to grant reasonable accommodations to people with disabilities when they are needed.”

The resident alleged that she moved into the complex, she requested a ground-floor unit but was told none were available. She agreed to move in provided she could move to a ground-floor unit when one became available. The resident alleged that when a unit meeting her needs became available, the manager leased it to a staff person who had requested the unit after the resident did. Remaining in the inaccessible unit, the resident alleged that she suffered significant injuries while negotiating the stairs to reach her bedroom and bathroom. Months later, the resident transferred to a unit on the ground floor bedroom but she alleged management continued to refuse her repeated requests for a ramp to ease access to her unit, a parking space for her handicapped-accessible van, and an accessible route from the parking lot to her unit. These access barriers eventually caused the resident to move from the property.

Under the settlement agreement the owner and managers of Cheyenne Villa agree to:

• Pay the resident $ 22,500;
• Revise reasonable accommodation, modification and transfer policies and designate a Section 504 coordinator for Cheyenne Villa to handle future reasonable accommodation requests;
• Redesign an accessible unit located on an accessible route, and leading to an accessible parking space, to meet Uniform Federal Accessibility Standards requirements; and
• Alter the complex’s seven designated accessible parking spaces to include curb cuts, and post signage marking the spaces.

In addition, the owner, management agents, and staff will receive two hours of training on the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

HUD Press Releases

MCLEAN, Va., May 10, 2012 /PRNewswire/ — Freddie Mac (OTC: FMCC) today announced that its Board of Directors has appointed Donald H. Layton as chief executive officer and has elected him as a member of the Board of Directors. Layton will join the company on May 21, 2012.  

Layton will assume leadership of Freddie Mac after a long career in banking and financial services. He worked for nearly 30 years at JPMorgan Chase and its predecessors, starting as a trainee and rising to vice chairman and a member of the three-person Office of the Chairman, retiring in 2004.  More recently, he served as chairman & CEO of E*TRADE Financial, which he shepherded through the recent financial crisis. Additionally, he has been a member of the boards of several financial services firms and was a senior adviser to an industry association. 

“Don brings strong executive leadership and a deep understanding of financial markets at a pivotal time for Freddie Mac,” said Christopher S. Lynch, Freddie Mac’s non-executive chairman. “His operating experience, analytical rigor and boundless energy make Don the right leader to continue our important work of supporting the nation’s housing market and helping America’s families, and to guide Freddie Mac in helping build a stronger framework for the future of housing finance.”

Layton, 62, will succeed Charles E. “Ed” Haldeman, Jr. Haldeman has served as CEO since August 2009, and announced in October 2011 that he would be stepping down this year.  

“I’m pleased that the Board was able to attract a private sector leader of Don’s caliber,” said Haldeman. “His capital markets and banking background coupled with his ability to manage large, complex organizations will serve him well as he leads Freddie Mac’s 5,000 dedicated employees going forward.”

In his career at JPMorgan Chase, Mr. Layton’s responsibilities spanned capital markets and investment banking, consumer banking and operating services. From 2002 to 2004, he was responsible for the company’s Chase Financial Services unit, which included the fourth largest mortgage firm in the U.S.  He was Co-Chief Executive Officer of J.P. Morgan, the investment bank of JPMorgan Chase, overseeing the entire range of the investment bank’s global activities, from 2000 to 2002. Prior to the merger of Chase Manhattan and J.P. Morgan in 2000, Mr. Layton was responsible for Chase’s worldwide capital markets and trading activities, including foreign exchange, risk management products, emerging markets, and fixed income, as well as its operating services businesses. He additionally supervised the bank’s investment portfolio for many years. 

Layton has also served as a senior advisor to the Securities Industry and Financial Markets Association from 2006 to 2008 and is chairman of the board of the Partnership for the Homeless, a nonprofit dedicated to reducing homelessness in New York City. He received simultaneous Bachelor and Master of Science degrees in economics from the Massachusetts Institute of Technology and also a Master of Business Administration from Harvard Business School.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today, Freddie Mac makes home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing.   www.FreddieMac.com

Twitter: @FreddieMac

SOURCE Freddie Mac

For further information: Media: Doug Duvall, +1-703-903-2476, or Investors: Linda Eddy, +1-703-903-3883

Freddie Mac News Releases (Corporate News)

DONOVAN JOINS STATE AND LOCAL LEADERS TO FORMALLY OPEN MARRERO
COMMONS ON THE SITE OF THE FORMER B.W. COOPER
Nearly $ 160 million investment breathes new life into a Katrina-ravaged neighborhood

NEW ORLEANS – In the wake of Hurricane Katrina in 2005, the B.W. Cooper Public Housing Development in New Orleans became uninhabitable. On that very site today, U.S. Housing and Urban Development Secretary Shaun Donovan joined New Orleans Mayor Mitch Landrieu, Senator Mary Landrieu, Congressman Cedric Richmond and Housing Authority of New Orleans (HANO) Administrative Receiver David Gilmore to cut the ribbon in front of one of the 50 new homes that are part of the first phase of construction for the Marrero Commons mixed-income community. B.W. Cooper is the last of “the Big Four” public housing developments in New Orleans being redeveloped after Hurricane Katrina rendered them uninhabitable.

“Three years ago, we broke ground on a dream that has now come true,” said Donovan. “A lot of people put in a tremendous amount of hard work to get us to this day. Today we make good on a promise the Obama Administration made to the residents of this great city: to build back better and stronger.”

Developers HANO, KBK Enterprises of Columbus, Ohio, McCormack Baron Salazar of St. Louis, Mo. and the B.W. Cooper Resident Management Corporation shared in the excitement of officially opening the first 50 homes for families and another 126 homes that are nearly completed. Twenty families have already moved into the new one- to four-bedroom homes – including five former B.W. Cooper residents. By July 2013, there will be 410 homes that will serve nearly 300 low- to moderate-income households and 116 market-rate rental households. This includes 42 accessible homes for mobility impaired residents and nine additional accessible homes for hearing/visual impaired residents. Six of the accessible homes are included in the housing opened today – three physically accessible and three hearing/visual accessible. The estimated investment for this redevelopment was nearly $ 160 million that came from multiple sources, including HUD, the State of Louisiana, the City of New Orleans, HANO and the Federal Emergency Management Agency (FEMA).

“BW Cooper has been home to thousands of New Orleans families for the last 70 years,” Mayor Landrieu said. “And today, we proudly stand here as this community is reborn as the Marrero Commons, giving its residents a modern, safe place to live. It is an improved model for providing affordable housing to a mix of incomes and represents a public-private partnership that brings together private equity and government resources that will improve the lives of its residents.”

“Marrero Commons serves as model of how public housing can be responsibly rebuilt into a quality mixed income community. Shelter is a basic human need, and this project will help families in Central City have access to quality, affordable housing,” Sen. Landrieu said. “I commend HUD, the state of Louisiana, city of New Orleans and the developer for their work on this essential project.”

“Today we celebrate another major milestone for our residents as we welcome Marrero Commons to the HANO community,” said HUD-appointed Administrative Receiver David Gilmore. “This site will always carry the history of B.W. Cooper but with a modern, Victorian and classical style, and amenities that our residents have wanted and deserved for many years. The project also represents a major accomplishment for many others in New Orleans as B.W. Cooper continues to pave the way for residents to speak up and stand firm on contract accountability, leveraging jobs and training opportunities on HANO construction sites.”

The new development will include a management office and business center for the B.W. Cooper Resident Management Corporation, which has been instrumental in keeping former residents informed and offers supportive services to former residents and a day-care for the community.

Then and Now

The redevelopment of B.W. Cooper and Lafitte, another one of the Big Four public housing communities that Hurricane Katrina severely damaged, were in jeopardy prior to the Obama Administration due to the fall of the housing market and economic downturn, which led to significant construction delays. As a result, the developers were at risk of losing the Gulf Opportunity (GO) Zone tax-credits that are used to build affordable housing to revitalize communities. Thankfully, with the support of many, Congress approved an extension of the construction deadlines allowing for the redevelopment of these two communities.

Marrero Commons was named B.W. Cooper at the time of Hurricane Katrina, but began as Calliope Project when 1,474 public housing units were built between 1942 and 1954. By the time Hurricane Katrina struck in 2005, many of the units were unoccupied and in desperate need of repair – with less than 963 units occupied. The units that remained were further damaged by Hurricane Katrina and water as a result of flooding in the aftermath of Katrina.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

HUD Press Releases

MCLEAN, Va., Oct. 24, 2011 /PRNewswire/ — Freddie Mac (OTC: FMCC) announced today that one of its directors, Laurence E. Hirsch, will not seek re-election to the company’s board of directors when his current term expires.

Hirsch notified the company on October 18, 2011, that he does not wish to stand for re-election.  He joined Freddie Mac’s board of directors in December 2008, and was most recently re-elected on February 17, 2011, by written consent of the company’s conservator, the Federal Housing Finance Agency, to a term that will end on the date of the company’s next annual meeting of stockholders or on the date that the conservator next executes a written consent for the purpose of electing directors, whichever occurs first.  Hirsch told the board that he is stepping down at the end of his term because of increased professional and personal commitments.

A veteran finance executive who has held leadership positions in the homebuilding, real estate and investment industries, Hirsch provided Freddie Mac’s board of directors hands-on experience and an understanding of customer relationships and the broader housing industry, said Freddie Mac Chairman John A. Koskinen.

“Larry has been an invaluable resource on Freddie Mac’s board of directors at a time when the company is playing a vital role providing liquidity and stability to a fragile housing finance market,” Koskinen said.  ”All of us at Freddie Mac thank Larry for his service to the company and to the country, and we wish him the best.”

Hirsch is the chairman of Eagle Materials Inc., and has served as chairman of Highlander Partners, L.P., a private equity firm, since April 2004.  Previously, Hirsch was chief executive officer of Centex Corporation, a large homebuilder, from 1988 until his retirement in March 2004, and its chairman from 1991 until March 2004.  Additionally, he is chairman of the Center for European Policy Analysis, in Washington, D.C.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.  www.FreddieMac.com

SOURCE Freddie Mac

For further information: Media: Michael Cosgrove, +1-703-903-2123, or Investors: Linda Eddy, +1-571-382-4732

Freddie Mac News Releases (Corporate News)

HUD Public Affairs (202) 708-0980 Treasury Public Affairs (202) 622-2960	FOR RELEASE Friday May 4, 2012

OBAMA ADMINISTRATION RELEASES APRIL HOUSING SCORECARD

WASHINGTON- The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the April edition of the Obama Administration’s Housing Scorecard – a comprehensive report on the nation’s housing market. Data in the April Housing Scorecard show some promising signs of stability, though the overall outlook remains mixed. Mortgage delinquencies have declined for four consecutive months and remain substantially below year ago levels, while sales of existing homes in the first quarter were 5.3 percent higher than one year ago. Data on home prices were soft in many mortgage markets, though adjusting for the traditionally slow winter months reveals the first uptick in prices since April 2011. The full report is available online at www.hud.gov/scorecard.

HUD Assistant Secretary Raphael Bostic said, “We’re making important progress in providing relief to homeowners under the Obama Administration’s programs. With fewer borrowers falling behind on their mortgages and almost half a million families taking advantage of our enhanced Home Affordable Refinance Program – standing to save on average $ 2,500 per year – it’s clear that the Administration’s efforts continue to provide significant positive benefits.” Bostic continued, “But with so many homeowners still struggling to pay their mortgages or move into more sustainable loans, we cannot rest on our laurels. That is why we are asking the Congress to approve the President’s refinancing proposal so that more homeowners can receive assistance.”

“The Administration’s programs have helped millions of homeowners achieve sustainable mortgage assistance to prevent foreclosure,” said Treasury Assistant Secretary for Financial Stability Tim Massad.  “The standards these programs have created continue to prompt the mortgage industry to provide improved outcomes for homeowners more broadly.”

The April Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

• The Administration’s recovery efforts continue to help millions of families deal with the worst economic crisis since the Great Depression.  More than 5.9 million modification arrangements were started between April 2009 and the end of March 2012 – including more than 1.8 million Home Affordable Modification Program (HAMP) trial modification starts and more than 1.3 million FHA loss mitigation and early delinquency interventions. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 2.8 million proprietary mortgage modifications through February. 
   
• More than 1.1 million homeowner assistance actions were granted through Making Home Affordable.  Eligible homeowners entering HAMP continue to demonstrate a high likelihood of long-term success in the program. As of March, more than 990,000 homeowners received a permanent HAMP modification, saving approximately $ 535 on their mortgage payments each month with a total estimated savings of $ 12.2 billion to date.  Eighty-six percent of homeowners entering the program in the last 21 months have received a permanent modification, with an average trial period of 3.5 months. After six months in the program, more than 94 percent of homeowners remain in their HAMP permanent modification.  The Office of the Comptroller of the Currency (OCC)’s Mortgage Metrics Report for the Fourth Quarter of 2011 found that HAMP modifications continue to exhibit lower delinquency and re-default rates than industry modifications. View the March MHA Servicer Performance Report.

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HUD Press Releases