FHFA IG Launches Probe of Fannie MF Program, Top Exec Departs

Fannie Mae Monday morning confirmed to National Mortgage News that its multifamily unit is the subject of an Inspector General probe being conducted by the Federal Housing Finance Agency.

Moreover, NMN has learned that Fannie Mae’s chief risk officer in charge of multifamily mortgages, David Worley, departed from the secondary market giant Monday morning.

A spokeswoman for the GSE declined to say whether Worley’s departure is related to the IG probe.

“Fannie Mae was advised by FHFA and the Office of Inspector General that the OIG is conducting an investigation of a transaction in our Multi-Family business,” it said in a statement. “The investigation is limited in scope and we are cooperating fully with FHFA and the OIG.  Consistent with our usual practice, we placed employees on administrative leave pending the outcome of the review.”

A call to Fannie’s switchboard in Washington revealed that Worley is no longer in the company’s database. No residential phone number was available for him in the Washington area.

As the head of multifamily mortgage risk, Worley oversees underwriting standards and related areas for Fannie. According to company figures, the delinquency rates on the GSE’s MF portfolio have been declining since late last year.

A spokeswoman for the Federal Housing Finance Agency said she had no information concerning Worley and referred calls to the IG’s office, which did not return them.

Worley joined Fannie in 2005 from Senderra Capital and First City Partners. Senderra had ties to Senderra Funding, a subprime lender controlled by Goldman Sachs.

Daily Briefing | Monday, October 31, 2011

  • Home Loan Banks’ Advances Continue Sharp Decline in 3Q

    With most banks still flush with deposits and reluctant to lend, the need for advances from the Federal Home Loan Banks continued to drop sharply during the third quarter, according to a report released Friday by the Office of Finance.

  • MF Global Bankruptcy Puts Downward Pressure on Rates

    The bankruptcy of MF Global Holdings Ltd. and its ensuing suspension as a primary dealer shook the larger market Monday morning, putting downward pressure on rate-indicative bond yields.

  • Hudson City Posts Lower Earnings, Originations

    Hudson City Bancorp Inc., Paramus, N.J., earned $84 million in the third quarter, in what its top executive called a “difficult environment facing portfolio lenders.”

  • MountainView Sells Fannie Bulk MSR Package

    MountainView Servicing Group said it has completed the sale of a $442 million package of Fannie Mae bulk servicing rights.

  • PMI Volume Off $700 Million

    The mortgage insurance industry wrote $4.9 billion of new coverage in September, down $700 million from August, according to new figures compiled by the Mortgage Insurance Cos. of America. However, two private MIs—Republic Mortgage Insurance Co. and PMI Mortgage Insurance Co.—were ordered by their respective regulators to stop writing new business during August.

  • Life Insurer CRE Investment Returns Up

    Life insurers had a 107 basis point improvement in the returns on their commercial mortgage loan investments in the second quarter over the first quarter, according to the LifeComps Commercial Mortgage Performance Index.

  • Help Now Available for Distressed Rhode Island Homeowners

    Bank of America opened a customer assistance center last week in Warwick, R.I., to assist its struggling mortgage customers in this region.

  • Fitch Registers First Post-2008 CMBS Rejections

    The committees that have been filtering transaction proposals for Fitch Ratings since the first quarter of 2009 began registering their first formal rejections of global commercial MBS securities proposals during the third quarter.

  • JPMorgan Says It Didn’t Dupe CUs over Risky MBS

    JPMorgan Chase late last week rebutted federal claims that it misled four now defunct corporate credit unions into buying $1.5 billion of risky MBS and pointed the finger – as NCUA’s own internal reviews have – at the management of the failed corporates and at NCUA’s own examiners.

  • An October Surprise in the NPL Market: NC Bank Unloads $200MM

    First Financial Holdings Inc. in Charleston, S.C., has proven its doubters wrong.

Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_465/fhfa-ig-probe-fannie-mf-program-top-exec-departs-1027229-1.html

Leave a Reply

WP2Social Auto Publish Powered By : XYZScripts.com
Bunk Beds