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  • Freddie Mac reports $354M net loss in first quarter

    Freddie Mac reported a $354 million net loss in the first quarter, significantly down from its $2.2 billion net income recorded in the fourth quarter of 2015. The news is a reminder of the GSE's net loss in the third quarter of 2015, which marked the first loss in four years. But despite the news, Freddie CEO Donald Layton remains positive on the results. Click the headline to find out why.

Lending

Lending standards continue to tighten

Housing demand spikes

house

There is still a wide pool of potential homeowners hoping to lock in a mortgage, according to the Federal Reserve July 2013 Senior Loan Officer Survey.

The survey is based on responses from 73 domestic banks and 22 U.S. branches and agencies of foreign banks.

The demand for prime residential mortgages became moderately stronger over the past 3 months, according 57% of banks surveyed.

Additionally, 6 out of 32 banks reported moderately stronger demand in nontraditional residential mortgages.

Home equity lines of credit also experienced an increase apart from normal seasonal variations, with 17 out of 68 banks, or 25%, saying they had moderately stronger demand.

While overall demand may be spiking, lending standards have become somewhat tighter than the average since 2005.

Almost 23% of banks said prime residential mortgages with a conforming loan balance and FHA and VA loan standards were somewhat tighter.

This is happening at the same time as the industry is shifting to a purchase driven market, with refinance applications reaching their lowest level in more than two years. 

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