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Fannie Mae (FNMA)

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  • Dec. 26, 2012, 7:10 AM
    The Obama Administration considers expanding its mortgage-refinance program to include those loans not held by the GSE's. Fannie and Freddie back just 50% of the nation's mortgages, leaving a big chunk of the 10.8M underwater mortgage loans not qualified for the HAMP. What happened to weaning the nation off of public mortgage finance?
    | 40 Comments
  • Dec. 19, 2012, 3:01 PM
    Fannie Mae and Freddie Mac may have lost more than $3B as a result of Libor-rigging (UBS settlement earlier), according to an FHFA report, which urges the GSEs to sue the banks involved. The companies have begun exploring legal options.
    | 3 Comments
  • Dec. 14, 2012, 11:47 AM
    Talking his book at a Brookings conference, Bank of America (BAC) CEO Moynihan warns against a hasty exit for Frannie from the mortgage market. Private capital would like to get a shot at the business, he says, but it's not there yet. "(Fannie and Freddie) will be critical to the transition."
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  • Nov. 26, 2012, 4:17 AM
    UBS (UBS) is due to ask an Appeals Court today to dismiss a lawsuit from the FHFA over losses on $6.4B in mortgage bonds sold to Fannie Mae and Freddie Mac. UBS argues that the claims expired in 2010 and so are time-barred by the statute of repose. The stakes are high not just for UBS but also for several other banks that the FHFA has sued for a similar reason, including JPM, Barclays (BCS) and GS.
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  • Nov. 7, 2012, 9:11 PM
    Fannie Mae (FNMA.OB) reports Q3 net income of $1.8B vs. a $5.1B loss a year ago as an improving housing market allowed a $9B drop in loan loss reserves to $67B. Like with Freddie Mac, more and more of the loan book (63% now) consists of mortgages originated post-bubble - thus making them stellar credits. The company expects to report an annual profit for the first time since 2006. (PR)
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  • Nov. 7, 2012, 12:48 PM
    Principal write-downs on mortgages could be coming as the President's reelection likely means Ed DeMarco's days as FHFA chief are numbered. Applying the quaint notion the housing agencies are to be stewards of taxpayer money, DeMarco has blocked administration plans for write-downs, arguing they would not just be costly, but ineffective as well. Nice to know you, Mr. DeMarco.
    | 12 Comments
  • Oct. 31, 2012, 12:41 PM
    The game is changed for mortgage servicers with regards to short sales as new guidelines agreed to by Fannie Mae and its insurers - among them Genworth (GNW) and Radian (RDN) - go into effect. The changes allow the servicers to approve such sales (as well as deeds-in-lieu) without getting approval from the insurers. The servicing business gets better and better. (earlier)
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  • Oct. 26, 2012, 3:01 PM
    The improving housing market is expected to allow Fannie and Freddie to begin paying back their taxpayer bailout faster than expected, according to a new FHFA report. The baseline forecast now sees the two agencies as just owing $76B by 2014's end, against $124B estimated this time a year ago. Getting down to $0? It's probably never going to happen.
    | 1 Comment
  • 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.
    | 2 Comments
  • 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.
    | 1 Comment
  • 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.
    | 3 Comments
  • 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?
    | 4 Comments
  • 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?
    | 6 Comments
  • 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%.
    | 6 Comments
  • 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.
    | 3 Comments
  • 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.
    | 2 Comments
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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