Friedman Billings Ramsey has downgraded Fannie Mae's stock to "underperform" because the giant mortgage company could be stuck with higher capital requirements and slower portfolio growth for two years.FBR analyst Paul Miller estimates that it could take Fannie "another two years" to become current in its financial reporting, while Freddie Mac is expected to become current by the end of this quarter. "For Fannie Mae, we believe portfolio growth will be limited to mid-single digits given continued restrictions on capital levels and management focus on restatement and becoming current in financial reporting," says a new FBR research paper. FBR reduced its 12-month price target for Fannie's stock to $44 from $65. At the same time, Mr. Miller increased the price target for Freddie's stock from $70 to $76, calling it an "outperform." The analyst said he expects Freddie's regulator to reduce its capital requirement in the first half of this year, which would allow for mid- to high-single-digit portfolio growth.
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While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24