Secondary market

The government-sponsored enterprises are going through a transition period. From proposals for rebuilding their capital cushions to tackling shortages in affordable housing, Fannie Mae and Freddie Mac face a number of key challenges with wide-ranging consequences this year.

Acting Ginnie Mae President Michael Bright will leave his post on January 16 and will no longer seek confirmation to be the permanent head of the mortgage secondary market agency.

Despite an overall weak mortgage originations market, Flagstar Bancorp's third-quarter earnings grew 20%, due in large part to its ongoing efforts to diversify operations.

The French banking giant will lower its stake in First Hawaii below 20% when the secondary offering is completed.

Fannie Mae and Freddie Mac enjoy considerable advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete.