The subprime market will likely be affected first as Fannie Mae sells securities to rebuild its regulatory capital, according to a Mortgage Bankers Association economist."In the short run, it may have more impact on the subprime market than the prime market," MBA economist Jay Brinkmann said. In complying with regulatory directives to restate its earnings and rebuild regulatory capital, Fannie Mae will probably sell its investments in triple-A rated subprime securities first, Mr. Brinkmann said. In the prime market, Fannie has not been a major purchaser of mortgage-backed securities this year. "We think near term that demand [from other investors] will be sufficient to keep prices at current levels," he said. Mr. Brinkmann heads the MBA's economic and research department. The Office of Federal Housing Enterprise Oversight will be working with Fannie to help the government-sponsored enterprise replenish its regulatory capital. The MBA economist said he hopes any portfolio sales will be gradually phased in to minimize market impacts.
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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