Items Tagged with 'GSE'

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FHFA's Watt reiterates that housing finance reform must come from Congress

Tells bankers' conference that reform effort goes beyond GSEs
On Thursday, while Department of the Treasury Secretary Steven Mnuchin told members of the Senate about the Trump administration’s plans for housing finance reform, Federal Housing Finance Agency Director Mel Watt said that the heavy lifting on housing finance reform needs to come from Congress.
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Interest rates slightly dent Fannie Mae's first-quarter profits

Expects to pay $2.8 billion in dividends to Treasury
Fannie Mae started off the year profitably but still struggled to compete with the gains witnessed at the end of 2016. According to its first-quarter earnings, Fannie Mae’s net income came in at only a little more than half of what it posted in the fourth quarter. Regardless, the government-sponsored enterprise expects to pay Treasury a $2.8 billion dividend in June 2017.
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Freddie Mac CEO: 0% capital buffer does not factor into daily operations

Capital is a measure of risk, so Freddie Mac is going to be just fine
Freddie Mac CEO Donald Layton told HousingWire on Tuesday that he is perfectly comfortable with allowing some Federal Housing Finance Agency executives to express concerns with the government-sponsored enterprise's 0% capital buffer requirements; but it is an emotional response he does not share. And this is the reason why.
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Freddie Mac first quarter profit withstands impact of rising interest rates

Returns $2.2 billion to taxpayers
Freddie Mac started 2017 slightly down as the market adjusted to lower refinance volumes and rising interest rate levels in the first quarter. As a result of its first quarter results, Freddie Mac’s dividend obligation to Treasury in June 2017 will be $2.2 billion, based on Freddie Mac’s net worth of $2.8 billion at March 31, 2017.
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MBA to Congress: Here’s the roadmap you need to tackle GSE reform

60-page white paper breaks down transition process to reform
On Sept. 6, 2008, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac into conservatorship. Nearly nine years later, the largest trade group in the mortgage finance space, the Mortgage Bankers Association, released a white paper to stay in front of the housing reform conversation and address one of the thorniest issues: how to transition to a new system.
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Here's the final tally on Fannie, Freddie credit risk-sharing in 2016

FHFA report details GSEs' efforts to offload risk
In 2013, Fannie Mae and Freddie Mac began shifting credit risk to investors as part of a plan to reduce the overall risk of the government-sponsored enterprises, and therefore, the risk to the American taxpayers. And a new report published Monday by the Federal Housing Finance Agency shows how much progress the GSEs are making in their collective effort to protect the taxpayers from risk.
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Community groups, lenders call for Fannie, Freddie to stop paying dividend to Treasury

Will Trump administration have a different answer?
Fannie Mae and Freddie Mac are scheduled to send their latest dividend payment to the Department of the Treasury later this month, but if a consortium of community groups and lenders has their way, that money will stay with the government-sponsored enterprises to help rebuild their dwindling capital base.
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