Paul J. Gough
Digital Producer- Pittsburgh Business Times
PNC Financial Services Group Inc. announced Friday an $89 million settlement with the Federal Home Loan Mortgage Corp.
The settlement would “resolve substantially all indemnification and repurchase obligations related to loans sold to Freddie Mac between 2000 and 2008,” PNC said in a prepared statement.
The settlement covers about 900,000 loans originated and sold to Freddie Mac, PNC said. The $89 million settlement includes credits of about $8 million, the bank said. A previous agreement in principal was made with the Federal National Mortgage Association, also known as Fannie Mae.
According to a July 2012 Pittsburgh Business Times article, PNC had set aside money to settle the Fannie Mae and Freddie Mac claims on mortgages that came to PNC through its purchase in 2008 of National City Corp. “PNC said the top reasons for the claims revolve around property values and missing documentation and that the loans primarily defaulted more than two years ago,” the article said.
Paul J. Gough is digital producer at the Pittsburgh Business Times. Contact him at firstname.lastname@example.org or 412-208-3827. You can also follow him on Twitter.
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CREATED Dec. 6, 2013
Las Vegas, NV (KTNV) – A disturbing new report shows about one out of every five homeowners in Nevada is at least two-months behind on their mortgage.
That’s why the City of Las Vegas has teamed up with Fannie Mae to offer some assistance.
Fannie Mae holds the mortgage on about 20-percent of Nevada homes.
To help, the Financial Guidance Center hosted one-on-one classes so struggling homeowners can discuss their options with Fannie Mae reps.
The classes continue on Saturday, Dec. 7 from 9 a.m. to 2 p.m. at their office near Jones and Sahara.
PNC Financial Services Group said Friday it had agreed to pay Freddie Mac $89 million to settle a dispute over home loans sold to the government-controlled mortgage buyer between 2000 and 2008.
The money will compensate for repurchase obligations on about 900,000 problem loans originated and sold to Freddie Mac, plus past losses and potential future losses related to denials, rescissions and cancellations of mortgage insurance, Pittsburgh-based PNC said in a statement.
Most of the loans covered under the settlement stem from mortgages that PNC inherited when it bought troubled National City Bank at the end of 2008 at the height of the financial crisis.
The new agreement follows an earlier settlement PNC reached with Fannie Mae, another government-controlled mortgage buyer, which the bank mentioned in a quarterly filing in November. The cost of that settlement was not disclosed.
The costs of both settlements were covered by reserves, PNC said.
PNC joins other major banks in settling with the two giant mortgage buyers, which have been demanding that lenders repurchase problem mortgages after questioning property values and the accuracy of appraisals.
Bank of America settlements with Fannie Mae and Freddie Mac have totaled nearly $15 billion.
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Law360, New York (December 06, 2013, 4:46 PM ET) — A D.C. federal judge approved a $153 million class action settlement Friday for investors who accused housing giant Fannie Mae and accounting firm KPMG LLP of putting out misleading financial reports, the largest such settlement in the D.C. Circuit since 1996.
U.S. District Judge Richard J. Leon said the deal, which includes about $29 million in attorneys’ fees and expenses for the investors’ counsel, “easily” cleared the bar for approval and was a better deal for the investors, who were led by two Ohio state pension…
WASHINGTON (AP) — A federal judge has approved a $153 million settlement of a securities fraud lawsuit against Fannie Mae and KPMG brought by shareholders of the mortgage giant.
The approval Thursday by U.S. District Judge Richard Leon came after nearly a decade of litigation. The shareholders, led by two Ohio public-employee pension funds, accused Fannie and its former accountant KPMG of causing them losses by intentionally manipulating earnings.
Fannie had an accounting scandal in 2004 that forced it to restate earnings by $6.3 billion. In 2006, federal regulators found risky practices and accounting manipulation at the company, which was fined $400 million.
A Fannie official said the settlement is “positive” for taxpayers and the company. Fannie and sibling Freddie Mac were rescued by the government in 2008. KPMG said it was pleased.
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December 6, 2013
PNC (NYSE: PNC ) announced today that it has reached an $89 million settlement with Freddie Mac (NASDAQOTCBB: FMCC ) related to mortgage claims for loans originated and sold to Freddie Mac between 2000 and 2008.
The settlement resolves certain PNC repurchase obligations for both existing and future claims for approximately 900,000 loans that were sold to Freddie, which is responsible for helping provide liquidity in the mortgage market by buying loans from banks and other financial institutions. The $89 million will also be used to compensate Freddie Mac for any losses that the government-sponsored entity incurred in the past or any other losses that may result in the future.
The settlement “will resolve substantially all of PNC Bank’s outstanding and potential indemnification and repurchase obligations,” and PNC does not believe there will be any other material claims related to the mortgages it sold to Freddie Mac or Fannie Mae.
This also follows news from earlier in the week that Bank of America had reached a roughly $400 million settlement with Freddie Mac related to its own dealings surrounding mortgage repurchase obligations.
PNC did note in the release that at the end of the third quarter it had already appropriately reserved enough money to cover the amount of the settlements.
NEW YORK–(BUSINESS WIRE)–
Fitch Ratings has affirmed five classes of FREMF 2011-K16 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates, series K-016. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to stable performance of the underlying pool. No loans have been delinquent or specially serviced since issuance. As of the November 2013 distribution date, the pool’s aggregate principal balance has been paid down by 1.4% to $4.16 billion from $4.21 billion at issuance.
The affirmations of the Freddie Mac SPC K-016 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of the corresponding classes of FREMF 2011-K16.
The largest loan in the pool (9.1%) is secured by a 196-unit high-rise luxury apartment building located in the Upper West Side neighborhood of Manhattan. The property, built in 2010, features amenities including a concierge, full-time doorman, roof deck with BBQ grills and bar area, fitness center, tenant lounge with adjacent patio area and an event room. The servicer reported occupancy as of September 2013 was 96% and the year-end 2012 debt service coverage ratio (DSCR) was 1.80 times (x).
The second largest loan in the pool (4.2%), Meridian at Braddock Station, is secured by a 480-unit, two building mid-rise apartment complex located six-miles south of Washington, D.C. The property contains a 12- and 16-story building that includes a business center, rooftop pool and sundeck, two fitness centers and concierge services. The loan is performing better than the underwritten NOI of $5.4 million with a year-end 2012 NOI of $6.7 million. The servicer-reported occupancy was 92% as of the second-quarter 2013.
The third largest loan in the pool (3.5%) is the Pueblo Nuevo, which is secured by a 172-unit mid-rise apartment complex located in the Lower East Side neighborhood of Manhattan. Common are amenities include a fenced-in playground, two elevators, an open parking lot, security cameras, front desk personnel and a laundry room. All 172-units benefit from a Section 8 HAP contract, which has been in place at the property since 1984. The servicer-reported occupancy and DSCR was 100% and 1.88x, respectively, as of year-end 2012.
Rating Outlooks on classes A-1 through B remain Stable due to stable performance of the underlying collateral. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction’s portfolio-level metrics. Additional information on rating sensitivity is available in the report ‘FREMF 2011-K16 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-016′ (Dec. 6, 2011), available at www.fitchratings.com.
Fitch affirms the following classes and Outlooks as indicated:
FREMF 2011-K16 Multifamily Mortgage Pass-Through Certificates
–$119.7 million class A-1 at ‘AAAsf’, Outlook Stable;
–$880.1 million class A-2 at ‘AAAsf’, Outlook Stable;
–$68.8 million class B at ‘A-sf’, Outlook Stable;
–$999.8 million* class X1 at ‘AAA’, Outlook Stable;
–$999.8 million* class X2-A at ‘AAA’, Outlook Stable.
Fitch does not rate classes C, X3 and X2-B.
Freddie Mac Structured Pass-Through Certificates, Series K-016
–$120.7 million class A-1 at ‘AAAsf’, Outlook Stable;
–$880.1 million class A-2 at ‘AAAsf’, Outlook Stable;
–$999.8 million* class X1 at ‘AAAsf’, Outlook Stable.
Fitch does not rate the class X3 certificates.
*Notional amount and interest-only.
A comparison of the transaction’s Representations, Warranties, and Enforcement (RWE) mechanisms to those of typical RWEs for the asset class is available in the following report: ‘FREMF 2011-K16 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-016 — Appendix’ (Dec. 6, 2011).
Additional information on Fitch’s criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, ‘U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria’, which is available at www.fitchratings.com under the following headers:
Structured Finance CMBS Criteria Reports
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
–’Global Structured Finance Rating Criteria’ (May 24, 2013);
–’U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria’ (Dec. 18, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
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HOT SPRINGS, Ark. (AP) – A real estate agent from Hot Springs has been named to the top post in a national trade organization.
Chris Polychron was elected as president-elect of the National Association of Realtors. Polychron has been a Realtor for 25 years. He was voted in at the 2013 Realtors Conference and Expo in San Francisco earlier in November.
Polychron says he’s worked for about seven years toward leadership in the organization, having first run in 2007. He said he’s been on the organization’s board of directors since 2002 and was a regional vice president in 2005 for territory that includes Arkansas, Kansas, Missouri and Oklahoma.
He told The Sentinel-Record the organization lobbies in Washington, D.C., to protect mortgage interest tax deductions and on other issues.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
And next year, the housing market will see some fresh complications that could slow growth when it should be springing back, according to one leading economist.
The National Association of Realtors’ 2014 forecast, introduced during the association’s 2013 Realtors Conference Expo, says home sales should “retain the healthy gains” seen so far this year.
Home sales last year and this year have pretty matched mirrored home values, with sales up 20% and home values up 18%.
Lawrence Yun, the NAR’s chief economist and historically a “glass-half-full” analyst on housing, isn’t sure that growth can continue, though.
He notes that while home sales and home values both show double-digit growth, income levels for people who might buy those increasingly expensive houses have checked in at a much lower rate — between 2% and 4% in the past two years.
“We’ve come off of record-high housing affordability conditions in the past year and are now at a five-year low, but conditions are still the fifth-best in the past 40 years,” he says. “While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices.”