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Fannie Mae (FNMA)

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  • Oct. 26, 2012, 6:12 AM
    Bank of America (BAC) staff could face civil fraud charges as part of a government lawsuit that accuses the bank of misrepresenting the quality of home loans its Countrywide unit sold to Fannie and Freddie, causing losses of over $1B to taxpayers. It would be a rare move given the lack of cases brought against individuals over the financial crisis.
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  • Oct. 26, 2012, 5:46 AM
    Freddie Mac (FMCC.OB) resisted allowing mortgage-borrowers to refinance to cheaper loans partly due to concerns the move would hurt profits and prevent it from paying back its bailout, a ProPublica investigation finds. More aggressive refinancing from Freddie and Fannie Mae (FNMA.OB) could have helped an extra 9M people and saved them almost $75B in interest payments, economist Christopher Mayer estimates.
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  • Oct. 24, 2012, 2:51 PM
    Job number one of the next Obama administration would appear to be the ousting of FHFA chief Ed DeMarco, who has blocked Treasury's efforts for principal reductions for troubled mortgages. Doing the job he was hired to do, DeMarco contends such moves sound nice, but have proven to be worse than existing programs at reducing foreclosures and saving the taxpayer money.
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  • Aug. 31, 2012, 2:35 PM
    Winding down state-sponsored mortgage finance will be easier said than done, as Fannie Mae purchased $81.9B mortgages in July, nearly double the amount from a year ago. The growing business for the GSEs is another signal housing is rebounding, but exactly how do politicians expect to replace them?
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  • Aug. 17, 2012, 12:56 PM
    Can't get enough of the Treasury/GSE news? Behind the move, speculates ZH, is Tim Geithner's fury at FHFA head DeMarco's snubbing of administration plans to impose principal reductions on mortgages ahead of the election. More? From the Treasury PR: "(This ends) the circular practice of the Treasury advancing funds to the GSEs simply to pay back dividends to Treasury." Did Treasury just admit it was running a Ponzi operation?
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  • Aug. 17, 2012, 12:48 PM
    The Treasury's move to help itself to all of the profits of Fannie Mae and Freddie Mac has indeed blown up a popular trade - that of buying up the preferreds in the hope the companies would one day earn enough to again make payments on them. One issue, the Fannie 8.25s, is off 59%.
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  • Aug. 17, 2012, 7:30 AM
    More on the Fannie/Freddie revamp: One consequence of the new arrangement will be the prevention of the companies' building of capital that would allow them to emerge in pre-crisis form someday. The move seems likely to fry those investors who bought preferred shares in the companies hoping for distribution of profits beyond the 10% government dividend.
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  • Aug. 17, 2012, 7:23 AM
    The Treasury is set to announce as soon as today changes to its backstop of Fannie Mae and Freddie Mac. The new arrangement would have the firms turn over all quarterly profits to the government as dividend payment, with nothing due during periods of losses. Previously, the companies made a 10% dividend payment each quarter - often borrowing from Treasury to pay the Treasury.
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  • Aug. 15, 2012, 3:53 AM
    With Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) increasing their efforts to persuade banks to buy back soured mortgages, five top lenders - BofA (BAC), Wells Fargo (WFC), JPMorgan (JPM), Citigroup (C) and Ally Financial - set aside nearly $3B in H1 to repurchase the loans, Bloomberg calculates. Regional lenders such as SunTrust Banks (STI) put aside an extra $1.3B.
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  • Aug. 8, 2012, 3:21 PM
    Fannie Mae, Freddie Mac, and HUD slashed their inventories of repossessed homes more than 18% last year, partly due to an improving market, partly due to new foreclosure guidelines slowing the process. Freddie Mac also reports the days it takes to sell a foreclosed home has stabilized around 200, and even started to fall last quarter.
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  • Aug. 8, 2012, 10:39 AM
    Fannie Mae (FNMA.OB +11.4%) reports Q2 income of $5.1B, up from $2.7B in Q1. Like Freddie Mac, the agency is benefitting from higher property prices/lower delinquencies. Like Freddie, Fannie is able to make its $2.9B dividend payment to the Treasury without having to draw from the Treasury. (PR)
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  • Aug. 3, 2012, 5:52 AM
    More on BofA (BAC): talks with Fannie Mae (FNMA.OB) over the latter's request that BofA buy back billions of dollars of bad mortgages have become more constructive recently, Reuters reports. In its 10-Q, BofA said that of $10.1B in unresolved claims, $7.3B relate to loans in which borrowers have been paying for over two years. (earlier)
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  • Jul. 31, 2012, 2:30 PM
    FHFA head Edward DeMarco says the benefits of principal writedowns don't outweigh the costs or risks. In an open letter on its website DeMarco states that after extensive analysis of the various programs, the FHFA has concluded principal forgiveness did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the agencies current approaches.
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  • Jul. 31, 2012, 4:11 AM
    The FHFA calculates that Fannie Mae and Freddie Mac could save $3.6B by reducing the balances for some homeowners who are in negative equity, the WSJ reports. Until now, the agency has maintained that the firms' existing rescue programs were less expensive. The FHFA is due to soon decide on whether to drop its opposition to Fannie and Freddie taking part in a debt-forgiveness program.
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  • Jul. 24, 2012, 6:16 AM
    The Federal Housing Finance Agency hired PWC in May to formulate contingency plans for putting Fannie Mae and Freddie Mac into receivership, which would involve liquidating the companies. The FHFA says the plan "is routine and does not indicate any condition of the current status of the regulated entities."
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  • Jun. 5, 2012, 5:00 PM
    Fannie Mae names general counsel Timothy Mayopoulos as its next CEO. Mayopoulos has an interesting story - he was fired from BofA on the eve of its takeover of Merrill to make way for Brian Moynihan; he now will have a hand in policy regarding put-backs of punk mortgages to or purchases of new ones from the bank.
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Company Description
Fannie Mae is a government-sponsored enterprise that was chartered by Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold.
Sector: Financial
Industry: Savings & Loans
Country: United States