Fannie Will Buy Negative Equity Loans
Fannie Mae has outlined a program for borrowers whose mortgage balance exceeds the value of their properties.

The Washington, D.C.-based company will purchase refinanced loans with negative equity if it already owns the loans, according to a Keys to Recovery fact sheet provided to MortgageDaily.com

The refinanced loan cannot exceed, however, 120 percent of the current property value, the secondary lender said.
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Secondary Gyrations
A deal has been reached for a first-mortgage portfolio to trade at a 45 percent discount, while a $12 billion servicing portfolio has found a buyer. And two new ventures aim to help secondary market participants better manage operations with improved technology.

MGIC Cuts, Restricts Eligible Loans
MGIC said it will halt mortgage insurance on some properties, no longer insure a number of loan programs and significantly restrict several other programs.

Pair Accused of Secondary Fraud
A pair of former executives of a New York-based mortgage banker have been charged with duping secondary market lenders on mortgage purchases exceeding $40 million.

Warehouse Lender Cuts Jobs
Citigroup's warehouse lending subsidiary will cut nearly 150 California jobs this year.

Secondary Conference, Transactions
As mortgage bankers hold their annual secondary marketing conference, banking associations are strengthening secondary alliances and enhancing rural financing programs. A $14 billion servicing portfolio of government loans is on the market, as is a portfolio of loans backed by apartments, condominiums and land, and another closing of a smaller transaction helped the seller clear out an expiring warehouse line.

Freddie Eases Some LTV Restrictions
Freddie Mac has eased loan-to-value restrictions on some programs.

Reverse Warehouse Investors Wanted
Investors are being sought for a Florida company that is launching a warehouse line for small reverse mortgage lenders.

Weak Activity at Fannie
As the mortgages it manages climbed closer to $3 trillion, Fannie Mae saw mixed results on its secondary marketing purchases and deterioration in its delinquency. Fannie also saw its duration gap jump.

Freddie Performance Worse
Freddie Mac, which manages more than $2 trillion in mortgages, saw quarterly purchases fall and delinquency rise. The company's duration gap moved for the first time in more than three years.