The House and the Senate have included additional funding for the Office of Federal Housing Enterprise Oversight in an emergency supplemental appropriations bill to cover litigation expenses involving former Fannie Mae and Freddie Mac executives.The $120 billion supplemental bill approved by the House includes $7.6 million, which OFHEO Director James Lockhart requested earlier this year. The Senate bill provides $4.8 million. House and Senate appropriators will meet later this month to hammer out a final bill. Meanwhile, Mr. Lockhart has informed an administrative law judge that he will not recuse himself from a case in which OFHEO has charged former Fannie chairman and chief executive Franklin Raines, former chief financial officer Timothy Howard, and former comptroller Leanne Spencer with manipulating the company's earnings to maximize their bonuses from 1998 to 2003. The former executives requested Mr. Lockhart's recusal on the grounds that he is biased and should not be in a position to make a final decision in the case. OFHEO is seeking to recover $115 million in bonuses paid to the former executives. Once the administrative judge renders a decision, which is not expected until 2008, Mr. Lockhart can accept it or reject it.
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The Community Home Lenders of America and the Community Associations Institute want the FHA to insure loans on condos approved by Fannie Mae and Freddie Mac.
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The Federal Open Market Committee's decision to reduce interest rates for the first time in nine months lifted bank stocks Wednesday. The 25-basis-point reduction could lead to net interest income headwinds now, but loan growth later, analysts said.
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Most lenders said they had already priced in the widely-anticipated decision to cut short-term rates for 30-year home loans but other products will benefit.
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The deal for the Class A office building owner will be funded from Rithm's cash as well as liquidity on the balance sheets, plus possible co-investors.
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Mortgage applications saw a significant jump for the second consecutive week, as homeowners took advantage of plummeting rates, the MBA said.
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The government-sponsored enterprise is making changes to mortgage-backed securities and servicing disclosure files to support use of the advanced credit score.
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