Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Quality of Fannie Freddie-backed mortgages improves
WASHINGTON (8/27/10)--The credit quality of the mortgages acquired by Fannie Mae and Freddie Mac has “improved substantially” since Fannie and Freddie were taken under government conservatorship, the Federal Housing Finance Agency (FHFA) reported on Thursday. Both Fannie and Freddie were placed under government conservatorship in 2008. In its Conservator’s Report on the Enterprises’ Financial Condition, the FHFA noted that the single-family mortgages that Fannie and Freddie have acquired during this period “have, on average, higher credit scores and lower loan-to-value ratios, resulting in lower early cumulative default rates.” The report, which will be released quarterly, also addresses the sources of Fannie and Freddie’s losses, related capital reductions, their loss mitigation activities, and other mortgage market information. According to the report, Fannie and Freddie’s investments and capital markets business segment was responsible for 9% of the total capital reductions realized between the end of 2007 and the second quarter of 2010. Their single-family credit guarantee business segment accounted for 73% of the capital losses realized during that same period. In a recent panel discussion, U.S. Treasury Secretary Timothy Geithner said that the federal government must adjust the housing finance system to eliminate the conflict between Freddie Mac's and Fannie Mae's public policy role and the need to enhance shareholder returns. Reps. Paul Kanjorski (D-Pa.) and Barney Frank (D-Mass.) have scheduled a slate of housing finance hearings for September, and Kanjorski has said that policies related to calculating guarantee fees and ideas for recovering the costs associated with Fannie and Freddie’s conservatorship will be discussed. For the full FHFA release, use the resource link.
Other Resources

RSS





print
News Now LiveWire
About 1 in 5 #CUs offer credit-building loans,@SchenkMike @CUNA vice president of economics and statistics, told @CreditCardsCom
14 hours ago
RT @CUNA: DDoS attacks shorter, intense, more expensive: @VERISIGN HT @newsnowlivewire http://t.co/QiQKIEjK5v
14 hours ago
RT @CUNA: .@CUNACouncils launches new website. Offering site tours to current members. Check it out! http://t.co/YFJA1tKIxn
14 hours ago
.@Discover to support #ApplePay by fall http://t.co/3wDjkOVU7P HT @Forbes
16 hours ago
.@HUDgov requires investors to delay foreclosure for a year and offers a non-profit only pool sale http://t.co/WYzQrTL3QA
19 hours ago