Freddie Mac expects to see price declines in some hot housing markets and is limiting purchases of interest-only and option adjustable-rate mortgages, according to the company's president and chief executive Richard Syron."Along with many other informed observers, we do anticipate some cooling in the hotter markets," Mr. Syron told investors and Wall Street analysts during an Aug. 31 conference call on the mortgage company's first- and second-quarter financial results. "And indeed, we are prepared to see some retracing in house prices in some of these markets where gains, quite frankly, outpaced the underlying economic drivers." The CEO also said the government-sponsored enterprise is purchasing IOs and option ARMs, but is keeping its credit exposure very low and forfeiting market share. "We understand that we are trading some volume of business today because we chose to avoid unduly compromising our credit and pricing discipline," Mr. Syron said. Such restraint is appropriate for a GSE with a special housing mission, and it is the "right approach" for the company's shareholders, he added.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25 -
Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
April 25 -
Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
April 25