Fixed mortgage rates hit a new low nationwide, according to survey data released today by Freddie Mac. The 30-year rate reached 3.84 percent, beating the previous low-rate set this February. The 15-year rate is also down to 3.07 percent, 0.82 percent lower than in May 2011. [more]

If you’re one of the estimated 11 million homeowners burdened with an underwater mortgage, a new federal policy change could be good news: Starting in June, when you want to do a short sale to shed your mortgage debt load and avoid foreclosure, you may not have to wait for months to hear back from your bank when you submit an offer from a potential purchaser. [more]

From the April issue: The Obama administration’s new plan to stimulate refinancings of FHA mortgages is likely to help large numbers of homeowners cut their monthly costs — even those who are deeply underwater. But it’s also likely to be a disappointment to many borrowers who aren’t aware of the program’s fine print and end up missing an opportunity to switch into a loan with a rate below 4 percent. [more]

From left: the White House and Edward DeMarco, head of the FHFA

Democrats’ efforts to reduce mortgage principals for hundreds of thousands of borrowers are stymied by one man, ProPublica claimed: Edward DeMarco, head of the Federal Housing Finance Agency. [more]

From left: Fannie Mae CEO Michael Williams and Freddie Mac CEO Ed Haldeman

A dozen housing executives are about to take a massive paycut.

The Associated Press reported that the salaries of the top 70 employees at Fannie Mae and Freddie Mac will be limited to $500,000 per year and bonuses will be eliminated. In 2009 and 2010 the top 12 executives at the government-sponsored enterprises collectively earned $35.4 million in bonuses and salary, with Fannie CEO Michael Williams and Freddie CEO Edward Haldeman receiving $9.3 million and $7.8 million, respectively, for the two-year stretch. [more]

From left: California Attorney General Kamala Harris and Edward DeMarco, acting director of FHFA

California Attorney General Kamala Harris is putting pressure on Fannie Mae and Freddie Mac to ramp up their effort to reduce principals for underwater borrowers, the New York Times reports.

In a letter last Friday to Edward DeMarco, the acting director of the Federal Housing Finance Agency, which is the regulator in charge of Fannie and Freddie, Harris asked that foreclosures be suspended until his agency is finished with their review of their current policy, which forbids debt reduction for delinquent homeowners who owe more than their home is worth. [more]

Mortgages on the rise

Mortgage rates are rising nationwide, leaving the historically low rates of the last three weeks behind, according to Freddie Mac’s weekly Primary Mortgage Market Survey released today.

For 30-year, fixed-rate mortgages, the average rate was 3.95 percent in the week ending Feb. 23, up week-over-week from 3.87 percent. Last year at same time, 30-year fixed-rate mortgages averaged 4.95 percent. The data shows a similar increase for 15-year, fixed-rate mortgages, which were up to 3.16 percent from 3.19 percent the week prior, and from 4.22 percent year-over-year. [more]

The Federal Housing Finance Agency has proposed replacing the mortgage-backed securities that Fannie Mae and Freddie Mac currently issue with a uniform security in a strategic plan it sent to Congress and the Obama administration, the Wall Street Journal reported.

The switch would mark a major change for both companies, and according to the FHFA paper, would be a public utility that could outlast the government-sponsored enterprises.  [more]

Despite opposition from much of the financial industry, the U.S. Treasury Department forged ahead with a plan to offer American homeowners principal reductions on their mortgages, CNBC reported.

In a major expansion announced late last week of its Home Affordable Modification Program, the Treasury will increase incentives to lenders who offer principal reductions, paying up to 63 cents on the dollar for those reductions. [more]

Bank of America and Freddie Mac and Fannie Mae mortgage bonds were the big winners from a Federal Reserve housing study that circulated through Congress this week, Bloomberg News reported, while mortgage bonds backed by high-cost debt lost in a massive market-shakeup. [more]