FHFA to launch probe of Federal Home Loan banks this fall

The Federal Housing Financing Agency will conduct a comprehensive review of the Federal Home Loan Bank System this fall. FHFA Director Sandra L. Thompson announced the forthcoming probe in a statement issued Wednesday afternoon. She said the agency would examine the 11 Home Loan banks on several fronts to "ensure they remain positioned to meet the needs of today and tomorrow." The announcement comes amid growing calls for greater oversight of the Home Loan banks, whose core businesses have changed considerably since their establishment 90 years ago.

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Mountain West Financial ends wholesale lending

Another mortgage lender is shutting down its wholesale channel. Redlands, California-based Mountain West Financial stopped accepting loans last week and loans in the pipeline must close by Sept. 30, it said in an announcement. The lender didn't disclose whether it cut employees as part of the move, although social media posts indicate some staff had been laid off.?

Freddie Mac's credit risk transfers set records for 2Q, first half

The government-sponsored enterprise issued approximately $6.5 billion between April and June, mitigating risks on mortgages with a total unpaid principal balance of around $151 million. That brought the first-half total to $15 billion in issuance, mitigating risks on $358 billion in loans. The record number show Freddie's volume has been strong for the first half of the year despite volatility in the market that at one point delayed a CRT deal from competitor Fannie Mae.

Cornerstone Home's bank buy gets final approvals

Cornerstone Home Lending moved one step closer to completing the acquisition of Roscoe (Texas) State Bank following receipt of all necessary regulatory approvals. The Houston-based nonbank expects the transaction to close on or about Oct. 1, subject to completion of the remaining closing conditions. This deal was first announced in June 2021.

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Better.com's SPAC merger in jeopardy

Better.com's efforts to go public are in dire straits, according to new financial disclosures. The embattled lender and special purpose acquisition company Aurora Acquisition Corp. are mulling options that could kill their merger over 15 months in the making , according to Securities and Exchange Commission filings dated Friday and posted Monday. "Although Aurora and Better remain committed to completing the Business Combination, Aurora and Better are in discussions regarding alternative financing arrangements for Better pursuant to which the Merger Agreement and related transactions would be terminated and Better would remain a private company," said Aurora in a filing.

Rocket Cos. offers more voluntary buyouts to employees

Rocket Cos. is offering more voluntary buyouts to employees following a tremendous decline in profit in the second quarter. The company in a statement Monday said it's issuing a second round of "voluntary career transition offers" to a small, undisclosed number of employees across multiple business areas within the organization. The announcement comes weeks after Rocket Cos. reported a profit of $60 million between April and June against $1.03 billion in the first quarter.

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