"The main focus of my testimony will be on key topics related to FHFA’s role as the Enterprises’ conservator and regulator. I will update you on the financial condition of the Enterprises in conservatorship. Then I will review FHFA’s approach to preparing for increased private market participation in housing finance and describe significant activities that FHFA has undertaken during the past year to further our conservatorship goals. Finally, I will report on the condition of the Federal Home Loan Banks (FHLBanks)..."

Read the full testimony.

The latest agency MBS transaction data is now available:

Gross purchases from November 24 through November 30: $4,350 million
Sales (dollar rolls) from November 24 through November 30: $0.0 million
Net purchases from November 24 through November 30: $4,350 million

http://www.newyorkfed.org/markets/ambs/

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau (CFPB), and the U.S. Department of the Treasury today announced the creation of a joint task force to combat scams targeted at homeowners seeking to apply for the Home Affordable Modification Program (HAMP). SIGTARP, the CFPB, and Treasury have partnered to protect taxpayers by investigating and shutting down these scams and by providing education programs to vulnerable homeowners. The joint task force today issued a consumer fraud alert to protect homeowners from HAMP-related mortgage modification scams. The fraud alert will also be provided directly to homeowners eligible for HAMP.

The consumer fraud alert is available below and online at http://www.SIGTARP.gov/pdf/Consumer_Fraud_Alert.pdf.

“The goal of our consumer fraud alert is to empower homeowners with the knowledge of how to recognize and avoid these scams,” said Christy Romero, Deputy Special Inspector General for SIGTARP. “These scams prey upon the most vulnerable homeowners as they desperately hold out hope of saving their homes. SIGTARP, the CFPB, and Treasury want to make sure that homeowners know a scam when they see one and know where to turn for help. SIGTARP will work with the CFPB and Treasury in this joint task force and with other law enforcement partners to shut down these scams and to ensure that the perpetrators pay for their crimes.”

Fannie 3.5's are at their highs of the day, down only 4 ticks vs 14 ticks earlier this morning, currently 101-27. Certain lenders that priced early enough could soon be considering small reprices for the better, but this alert is more of a "heads-up" than a flat-out reprice alert (more like a "don't lock yet if you were going to").

10yr yields are matching the positivity, now challenging yesterday's high yields just over 2.10 as MBS challenge the important 101-26 pivot. if current levels hold or are improved upon, reprices for the better are only a matter of time.

Henry V. Cunningham Jr., CMB, a member of the Mortgage Bankers Association's (MBA) Board of Directors and immediate past Chairman of MBA's Residential Board of Governors (RESBOG), testified today before the House Financial Services Committee at a hearing titled, "Perspectives on the Health of the FHA Single-family Insurance Fund."

Below is Mr. Cunningham's oral statement before the subcommittee, as prepared for delivery.

"FHA is at an important crossroads today. Since the onset of the financial crisis, FHA has played an important countercyclical role in our nation's mortgage market. Considered irrelevant just a few short years ago, the agency is now providing much-needed liquidity during a period marked by the prolonged retreat of private capital..."