Lockhart Defends Fannie, Freddie Bonuses
FHFA director James B. Lockhart yesterday defended so-called “retention payments” set to be paid to some high-ranking officials at mortgage financiers’ Fannie Mae and Freddie Mac.
The statement was released after CNN discovered that four top executives at Fannie Mae were expected to receive bonuses ranging from $470,000 to $611,000, according to a recent SEC filing.
Executive vice presidents Kenneth Read more
Repayment Plans Dominate Fannie and Freddie Loan Workouts
Fannie Mae and Freddie Mac saw an increase in loan modifications during the fourth quarter, but inferior repayment plans continue to dominate loss mitigation efforts, according to the latest report from the Federal Housing Finance Agency.
A total of 23,777 loan modifications were carried out during the fourth quarter, up from 13,488 in the third quarter, but still rather dismal numbers for the Enterprises’ stable Read more
Freddie Mac Lost $50 Billion in 2008
Mortgage financier Freddie Mac finished up a stellar 2008, dropping another $23.9 billion in the fourth quarter thanks to mark-to-market declines and credit-related expenses.
For the entire year, the GSE lost a whopping $50.1 billion, or $34.60 per diluted common share, compared with a net loss of $3.1 billion, or $5.37 per share, in 2007.
Freddie set aside $7.2 billion for credit losses and real estate Read more
Uncle Sam Bails Out Freddie & Fannie
Fannie Mae and Freddie Mac sound like an aging aunt and uncle, but these are both “government-sponsored enterprises”. This means that they are privately owned, but receive support from the Federal Governement, and assume some public responsibilities. The recent mortgage crisis and fallout from sub-prime lending has gotten both Freddie & Fannie in dangerous waters and verging on bankrupcy called for the assistance or bail-out to speak Read more
Freddie Mac Launches Alt-A Loan Workout Plan
Mortgage financier Freddie Mac is piloting its new “Workout Strategy For High Risk Loans” designed to keep more of its most troubled borrowers in their homes.
Third party servicers that specialize in Alt-A loans and other higher risk mortgages, such as Ocwen Financial, will be employed to handle the surge in distressed mortgages.
Initially, the program will focus on an estimated 5,000 low documentation Read more
Paulson Outlines Future of Fannie and Freddie
Treasury Secretary Henry Paulson today outlined a possible future role for mortgage financiers Fannie Mae and Freddie Mac during a speech before the Economic Club of Washington.
While suggesting four options, including privatization, nationalization, and a partial guarantee program, a housing utility option seemed to be preferred.
Under this model, a “public utility-like mortgage credit guarantor” Read more
Mortgage Rates Lowest in Freddie Mac Survey History
Mortgage rates fell this week to the lowest point since mortgage financier Freddie Mac began its weekly interest rate survey in April 1971.
“Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971,” said Frank Nothaft, Freddie Mac chief economist.
“The decline was supported by the Read more
Fannie, Freddie Foreclosure Starts Fall, But Wait
While mortgage delinquencies inevitably continue to rise, foreclosure starts in relation to those figures have fallen, according to the FHFA September Foreclosure Prevention Report released today.
The report, which covers Fannie Mae and Freddie Mac’s 30.7 million residential mortgages, revealed that loans 60+ days delinquent (including those in BK and foreclosure) increased to 2.21 percent of the total portfolio Read more
Uncle Sam Bails Out Freddie & Fannie
Fannie Mae and Freddie Mac sound like an aging aunt and uncle, but these are both “government-sponsored enterprises”. This means that they are privately owned, but receive support from the Federal Governement, and assume some public responsibilities. The recent mortgage crisis and fallout from sub-prime lending has gotten both Freddie & Fannie in dangerous waters and verging on bankrupcy called for the assistance or bail-out to speak Read more