Freddie Mac has reported that its net income fell 27% to $2.1 billion last year, from $2.9 billion in 2004, primarily because of $600 million in costs associated with settling securities litigation, charges related to Hurricane Katrina, and certain accounting changes.Freddie Mac also warned that its earnings would likely show increased volatility in the future due to "asymmetric mark-to-market accounting treatment" of certain assets and liabilities. Those accounting changes affect another measure of Freddie Mac's performance, the value of net assets, before capital transactions, attributable to common shareholders. The net value declined slightly last year, to $26.7 billion at the end of 2005. In a conference call with investors and analysts, Freddie Mac executive vice president Patricia Cook said wider mortgage-to-debt option-adjusted spreads reduced the fair value of net assets, but that the wider spreads will actually benefit Freddie Mac in the long term. Freddie Mac chairman and chief executive Richard Syron and chief operating officer Eugene McQuade said the fundamentals of the business remain good, stressing that Freddie Mac gained market share last year and exceeded a 30% surplus capital target by some $3.5 billion.
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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.
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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.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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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.
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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.
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