Congress should repeal a $2.25 billion line of credit that Fannie Mae and Freddie Mac maintain with the U.S. Treasury, according to St. Louis Federal Reserve Bank President William Poole.This line of credit "is too small to have any practical value in handling a crisis and is of symbolic value only," Mr. Poole told a Chicago FRBank conference. He also declared it a "welcome development" that the Office of Federal Housing Enterprise Oversight is establishing conservatorship procedures for Fannie and Freddie. "Should either Fannie Mae or Freddie Mac become financially stressed, the only way to avoid market chaos will be to have clear procedures in place, in advance, to handle the problem," Mr. Poole said. He also noted that repealing the line of credit and developing conservatorship procedures would reinforce the fact that the U.S. government does not guarantee the debt issued by the two mortgage giants.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28 -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28