The Mortgage Bankers Association released a detailed transition plan Thursday designed to help policymakers turn the government-sponsored enterprises into private guarantors of mortgage-backed securities.
Private market mortgage insurance companies should better align their buyback and rescission policies with those of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency said.
A bipartisan group of senators told Mel Watt, the regulator who oversees Fannie Mae and Freddie Mac, that he shouldn't allow the companies to recapitalize without congressional approval.
Demographic trends continue to fuel demand for apartments, and there is a large volume of 2007 vintage loans up for refinancing, says Jeffrey Hayward, Fannie Mae's head of multifamily mortgage.
Suspending Fannie Mae and Freddie Mac's regular dividend payments to the Treasury, thus enabling the companies to replenish their reserve capital, would put their future on better footing.
Four retail managers are the first senior employees let go by the bank for their roles in the phony accounts scandal; federal court rules against investors in GSE suit.
A federal appeals court upheld a ruling that barred hedge funds from suing to overturn the U.S. government’s 2012 decision to capture billions of dollars in the profits generated by the mortgage guarantors Fannie Mae and Freddie Mac after their bailout.
Fannie Mae said it earned $5 billion in the fourth quarter, doubling its profits from a year earlier with a big boost from gains on derivatives the company uses to hedge risk.
The rise in home values is good news for homeowners looking to tap the equity in their homes to pay down debt or make big purchases, but some consumer groups fear it could lead to a new wave of loan defaults.