The chief executives of Fannie Mae and Freddie Mac say limiting their growth by placing constraints on their portfolios and curbing their debt issuance would result in higher mortgage rates.In Senate testimony late Wednesday, Freddie Mac's new chairman and chief executive, Richard Syron, said there is "no way that mortgage debt and the risks of investing in it would disappear by downsizing the [government-sponsored enterprises] or making other changes to the GSE charter." Fannie Mae CEO Franklin Raines said, "Any arbitrary constraint on our portfolio would remove an important bid for mortgages from the market, which would lead to higher and more volatile mortgage rates for homeowners." The day before, Federal Reserve Board Chairman Alan Greenspan told the Senate Banking Committee that as a "goal" he favors privatizing Fannie and Freddie or limiting their growth by putting constraints on their debt issuance. The central banker said he thinks it's essential to the U.S. economy to eliminate as much as possible the two GSEs' federal subsidy and their ability to expand their on-balance-sheet assets.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
10h ago