Federal Reserve Chairman Alan Greenspan, a fierce advocate of limiting the size of Fannie Mae's and Freddie Mac's portfolios, is now wringing his hands over the size and complexity of their hedging strategies.In a Sept. 2 letter to Sen. Robert Bennett, R-Utah, released Thursday morning, Mr. Greenspan writes that "[a]s Fannie and Freddie increase in size relative to the counterparties for their hedging transactions," their ability "to quickly correct the inevitable misjudgments inherent in their complex hedging strategies becomes more difficult." The letter adds that "excessive caution" in reducing their portfolios could destabilize the U.S. financial system and eventually diminish the availability of mortgage money to consumers. Fannie and Freddie hedge their portfolio risk by investing in derivatives through Wall Street.
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2h ago -
The San Diego company was back in the black with a net income of $28.5 million in the first quarter of 2024, up from a net loss of $93 million the previous quarter.
May 9 -
The agreements at the heart of the hearing did not cover the one reached with the National Association of Realtors or those people that only bought homes.
May 9 -
Feds say Chicago businessman Mark Steven Diamond defrauded at least 80 victims and caused at least $6 million in losses.
May 9 -
Fannie Mae's tool, used by originators to determine income levels for self-employed borrowers, aims to help them avoid potential underwriting errors, the government-sponsored enterprise said.
May 9 -
The 30-year fixed rate mortgage fell for the first time in six weeks as the Federal Open Market Committee meeting outcome is finally priced in.
May 9