Articles Tagged with ''Affordable housing''

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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Freddie's Volume Summary Shows Mortgage Portfolio Jump

Freddie Mac released its monthly volume summary today (available here), which showed continued growth in the GSE's retained portfolio. Reuters reports: Freddie Mac said on Thursday its huge mortgage holdings rose at the fastest pace in 16 months in July as the company took advantage of a faltering housing market to scoop up cheaper mortgage-backed bonds ...
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Freddie Mac Goes on Offensive; Highlights Liquidity Role

Freddie Mac is highlighting its role of providing liquidity to the conforming mortgage market on the company's Web site, characterizing its role as "shelter in a storm:" Even when other lenders stop lending, we continue to provide a steady source of home funding. The benefits Freddie Mac provides are often taken for granted when times are good but are most apparent in times of crisis.
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Fannie, Freddie Making Progress on Interagency Guidance, but WaPo Readers Would Never Know it

Catching up on news from late last week, the Office of Federal Housing Enterprise Oversight reported last Friday that Fannie Mae and Freddie Mac have been making progress in an effort to adopt the Interagency Guidance on Nontraditional Mortgage Product Risks. Both GSEs said in letters to lenders last week that they will enforce compliance with the guidance on all conforming loans starting September 13.
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Freddie: Rates Drop, Financial Markets Grow Wary of Housing's Impact

Freddie Mac's Primary Mortgage Market Survey is out, and shows that mortgage rates dropped modestly last week, ending months of upward trending. ...the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent with an average 0.5 point for the week ending June 21, 2007, down from last week when it averaged 6.74 percent. Last year at this time, the 30-year FRM averaged 6.71 percent.
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Freddie Posts $211M Loss in Q1

Freddie Mac announced earlier today that it has resumed regular quarterly reporting with the release of its first quarter results -- which promptly showed the GSE losing $211 million during the quarter, mostly due to mark-to-market losses on its derivatives holdings. From Freddie's press release:
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Freddie Reports 2006 Results; Loses $480 Million in Fourth Quarter

Freddie Mac (NYSE:FRE) today reported net income of $2.2 billion for 2006, up 4 percent compared to $2.1 billion in 2005. The nation's second-largest GSE also reported a net loss of $480 million in the fourth quarter of 2006, due to interest rate movements during the quarter. Freddie also disclosed that 18 percent of its retained portfolio consists of subprime loan products, holdings that might have driven a significant portion of the GSE's realized fourth quarter losses as the value of subprime credit derivatives fell significantly at the end of last year and into early 2007.
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Bernanke: GSEs 'Failing' on Affordable Housing

Fed chairman Ben Bernanke offered his view on GSE reform yesterday, saying in remarks to a community banker's convention in Hawaii that Fannie and Freddie's portfolio holdings do little to promote homeownership and lack a clear focus on fostering affordable housing. The chairman's comments highlighted what he sees as a need for both Fannie and Freddie to "refocus" on providing affordable housing to millions of Americans, particularly in light of ongoing troubles in the subprime credit sector.
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