Fannie Mae is working on new structures that would allow the mortgage giant to guarantee and securitize mortgages it likes (in terms of pricing and risk) and sell off the pieces it doesn't like to other investors."We tested our first structure to transfer risk to other market participants who have a different view of risk than us," Fannie executive vice president Thomas Lund told a Credit Suisse financial services forum Feb. 8. "These structures will allow Fannie to serve its customers and participate in more transactions," he said, and it works with many products, including subprime mortgages. The EVP for single-family mortgages noted that Fannie started purchasing subprime loans from a "very limited" number of its lenders last year. "We began to dip our toe in the water of subprime whole loans to determine if we could bring value to that segment of the market," Mr. Lund said. He indicated that Fannie wants to increase its involvement in the subprime market. The government-sponsored enterprise can be found on the Web at http://www.fanniemae.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago