Articles Tagged with ''Affordable housing''

Could Freddie See a Ratings Drop?

Moody's Investors Service said late Wednesday that it had placed Freddie Mac's Bank Financial Strength Rating (BFSR) on review for a possible downgrade (subscription req'd), citing a concern that the GSE may experience higher credit losses than previously expected. Freddie currently has a BFSR of 'A-,' Moody's second highest rating for the category.
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Mortgage Rates Essentially Unchanged

Mortgage rates crept upward ever so slightly in the past week, according to a report from Freddie Mac, with 30-year fixed-rate mortgages averaging 6.14 percent with an average of 0.4 point for the week ending December 20, 2007 -- up only barely from one week earlier, when it averaged 6.11 percent. Last year at this time, the 30-year FRM averaged 6.13 percent. Other mortgage rates remained essentially unchanged as well.
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Fannie and Freddie: No Recovery for Housing Until 2010

Both Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron spoke today at a conference sponsored by Goldman Sachs Group, Inc. -- each had sobering views on the state of mortgage banking and housing, according to numerous published reports. Bloomberg reported that Fannie CEO Mudd doesn't see recovery until 2010:
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Freddie Cuts Dividend, Announces $6 Billion Preferred Offering

Freddie Mac said late Tuesday that it will cut its common dividend by 50 percent, to $0.25 per share, while it will sell $6 billion in preferred stock as part of a move to raise capital amid expected mortgage-related losses in the fourth quarter. Today's move was largely anticipated. The GSE reported a $2 billion loss for the third quarter on November 20th, and had said at that time that it would seek to raise capital to provide operating flexibility for 2008.
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Freddie Feels Mortgage Crisis; $4.8 Billion in Write-offs, Loan Loss Reserves

Freddie Mac today announced its third quarter results, and it's pretty clear that the troubles in the U.S. housing market have reached well beyond "slump" status into what may now best be described as a crisis. The GSE reported a net loss of $2.02 billion for the quarter, and absorbed both a $1.2 billion provision for credit losses as well as a $3.6 billion charge in mark-to-market activity for its portfolio assets. Earlier estimates had pegged potential losses at up to $5 billion.
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OHFEO Slams Cuomo; Says NY AG 'May Not Fully Understand' Issue

The Office of Federal Housing Enterprise Oversight today released a letter that finds OFHEO director James Lockhart taking New York AG Andrew Cuomo to task for failing to involve OFHEO before issuing subpoenas to Fannie Mae and Freddie Mac over his widening appraisal fraud investigation. "Taking to task" might be too kind a characterization, actually.
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Freddie Mac Settles SEC Fraud Charges, Will Pay $50 Million

Freddie Mac said late yesterday that it has agreed to a $50 million civil penalty to settle SEC charges of securities fraud in connection with improper earnings management at the GSE beginning as early as 1998 and lasting into 2002. As part of the settlement agreement, Freddie Mac neither admitted nor denied any wrongdoing.
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