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Record Fannie Mae Profits Continue Amid GSE Debate(5)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(5)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(4)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Consumers Borrowed More And At CUs In September(5)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(6)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Record Fannie Mae Profits Continue Amid GSE Debate

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Consumers Borrowed More And At CUs In September(6)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Record Fannie Mae Profits Continue Amid GSE Debate(6)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Record Fannie Mae Profits Continue Amid GSE Debate(4)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Consumers Borrowed More And At CUs In September(1)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(1)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Record Fannie Mae Profits Continue Amid GSE Debate(2)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Consumers Borrowed More And At CUs In September

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Record Fannie Mae Profits Continue Amid GSE Debate(1)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Consumers Borrowed More And At CUs In September(4)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Record Fannie Mae Profits Continue Amid GSE Debate(3)

 Permanent link
WASHINGTON (11/8/13)--Fannie Mae reported $8.6 billion in comprehensive income for the third quarter of 2013, the seventh straight quarter in which the government-sponsored enterprise has reported a quarterly profit.

Fannie Mae said it will pay $8.6 billion in dividends to the U.S. Treasury. The GSE will have paid $114 billion in dividends to the Treasury when this latest payment is made. That is compared against a cumulative draw from Treasury of $116.1 billion.

Fannie Mae said it's positive results were due to continued stable revenues and credit-related income, which was supported by a significant increase in home prices in the quarter. The company expects to remain profitable for the foreseeable future.

The GSEs have been under government conservatorship since 2008.

The record Fannie Mae profits and resulting repayments do not appear to be slowing the pace of GSE reform efforts. A range of housing policy changes have been discussed by the U.S. House, Senate, and the Obama administration, including complete market privatization, limiting government market intervention, and several stops in-between.

One piece of House legislation, the Protecting American Taxpayers and Homeowners Act (H.R. 2767), would phase out Fannie Mae and Freddie Mac within five years and make other mortgage finance market changes. That bill may be considered by the full House.

The Senate Banking Committee is holding its own weekly housing hearings, and developing plans for a future housing finance market. The ranking committee Republican, Rep. Mike Crapo (Idaho), this week said a bill could be marked up soon.

One Senate bill, the Housing Finance Reform and Taxpayer Protection Act (S. 1217), was discussed by the committee in a hearing held this week. That bill, introduced by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would wind down Fannie and Freddie and replace them with a new mortgage guarantor.

In a discussion of the bill with Warner at the hearing, Credit Union National Association Chief Economist Bill Hampel, a witness, noted that such a transition of housing finance functions to new entities needs to be "gradual" and "seamless." Warner remarked that he would appreciate seeing more comments on that.

Credit unions do need access to the secondary market, and that access needs to be done right, Hampel added.

Warner, during Tuesday's hearing, noted there are ways to improve S. 1217, and encouraged Hampel and others that testified to provide specific guidance to committee staff on how the bill could be bettered.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(2)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Consumers Borrowed More And At CUs In September(3)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.

Job Cuts Slightly Up, But Unemployment Benefits Claims Down(3)

 Permanent link
CHICAGO (11/8/13)--Research about U.S. labor market activity reveals that data from October--a month marred by a partial government shutdown--contains a few silver linings as the holiday shopping season approaches.

A Chicago-based research firm found that the total number of job cuts increased slightly throughout the month. The survey, conducted by Challenger, Gray & Christmas, showed that the country's employers cut 45,730 jobs from the nation's payrolls--up from the 40,289 jobs cut in September.
 
But Labor Department data found that seasonally adjusted first-time unemployment insurance claims decreased by 9,000 for the week ending Nov. 2, down to 336,000 from an upwardly revised 345,000 the week before.
 
The four-week moving average of first time claims also dipped by 9,250 to 348,250.
 
Signs of long-term weakness in the labor market persist, however. Initial claims remained higher than they were at the end of the summer. Before the shutdown and a backlog of unprocessed claims that mounted in California after the state switched computer systems, weekly first-time claims hovered around 325,000 (MarketWatch Nov. 7).
 
Continuing claims also rose by 4,000 to a seasonally adjusted 2.87 million in the week ending Oct. 26.

Consumers Borrowed More And At CUs In September(2)

 Permanent link
WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve.  However, credit card use fell for a fourth consecutive month.
 
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
 
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report. 
 
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
 
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
 
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However,  limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
 
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
 
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%,  or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
 
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.

For the full report, use the link.