Stung by declining home values and subprime delinquencies, Congressionally chartered mortgage giant Freddie Mac posted a $2 billion loss in the third quarter, noting that it may raise additional capital in "the very near term" so it can meet a 30% minimum capital standard. Early Tuesday morning it was unclear how much of its 3Q loss is directly tied to markdowns on the value of its $120 billion subprime portfolio. It experienced GAAP mark-to-market losses of $3.6 billion in the quarter, which includes $2.3 billion in credit items and $1.5 billion in interest-rate items. "Weakening house prices and deteriorating credit have hurt Freddie Mac's results, as well as those of other participants in the mortgage market," said Buddy Piszel, chief financial officer. "You can see the impact of these trends in our credit results and throughout our financial statements. Year-to-date, we have recognized $4.6 billion in net credit-related items on a pre-tax basis."
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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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