In a MarketWatch article, chairman and chief executive Richard Davis of U.S. Bancorp (USB) told investors that Freddie Mac is raising demands to banks to repurchase certain defaulting mortgages that were sold to both government-sponsored enterprises. 

Freddie Mac informed U.S. Bancorp and other banks during the Goldman Sachs (GS) Financial Services conference that the GSE would demand banks to take back defaulting mortgages made in 2004 and 2005. Previously, both Fannie Mae and Freddie Mac only demanded banks to take back mortgages made in 2006 or later.  

Here’s a bit from the article

“U.S. Bancorp will add to its reserve for such repurchases in the fourth quarter to provide for a potential increase in losses from mortgage putbacks. The increased reserve will slice one to two cents off the bank’s earnings per share, Mr. Davis said.”

 

 

 

Most Popular Articles

Fannie Mae, Freddie Mac watchdog prepping for "massive IPO"

The watchdog for Fannie Mae and Freddie Mac is interviewing Wall Street firms to handle a public offering that would dwarf any IPO in history, Fox says.

Dec 09, 2019 By

Latest Articles

Most lenders expect to keep making big money on mortgages

Recent data from the MBA revealed that lenders are now making more money per loan than they’ve made in almost seven years. And a new report from Fannie Mae suggests that most lenders believe they’ll keep making that much money per loan for the foreseeable future.

Dec 12, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please