Fannie Mae has estimated that it faces a possible $9 billion loss if the SEC rules that its treatment of derivatives violates accounting rules and hides the enterprise's hedging losses over the past three years, as alleged by its primary supervisor -- the Office of Federal Housing Enterprise Oversight.The giant mortgage company also disclosed in a special 12b-25 filing with the Securities and Exchange Commission that its auditor could not sign off on its third-quarter financial statement (Form 10-Q) because of the accounting dispute with OFHEO, which is now before the SEC's chief accountant. In light of these circumstances, Fannie Mae said it is "not able to file a timely Form 10-Q," and therefore has missed the Nov. 15 deadline for filing an audited financial statement. In a press release that explains the 12b-25 filing, the mortgage giant stresses that it has properly accounted for its derivative hedging activities. However, it may be required to record an after-tax loss of $9 billion if the SEC finds that Fannie did not qualify for hedge accounting for all periods since Jan. 1, 2001. "Fannie Mae will modify its accounting, if necessary, to comply with SEC's views," the press release says. The release also reveals that Fannie's third-quarter earnings (based on the company's current interpretation of generally accepted accounting principles) fell 9%, to $2.42 billion, compared with $2.67 billion in the same period last year. Under a core-earnings calculation devised by Fannie, the company said third-quarter earnings increased by 1%, to $1.85 billion, from $1.83 billion in the third quarter of 2003.
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A labor shortage is costing the market tens of thousands of new homes per year, and tariff uncertainty is adding thousands of dollars in expenses per unit.
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The pace of revenue growth slowed toward the end of 2024, with the trend continuing into the first three months of this year, NAHB reported.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
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The 10 basis point decline in the 30-year fixed mortgage was the most since March and the first time rates are below 6.7% since April, Freddie Mac said.
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The firm, now going by Fairway Home Mortgage, said the change is a representation of plans to create a "connected ecosystem."
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