Fannie Mae and Freddie Mac have renewed their commitments to issue subordinated debt under separate agreements with their supervisor, the Office of Federal Housing Enterprise Oversight."The corporations shall take reasonable steps to maintain outstanding subordinated debt of sufficient size to promote liquidity and reliable market quotes," according to the agreements by the chief executives of the two government-sponsored enterprises. In 2000, the GSEs made voluntary commitments to Congress to issue sub debt. But Fannie and Freddie suspended their sub debt programs when they ran into accounting problems. "These agreements represent an evolution of voluntary actions to a set of enforceable commitments that will be overseen by OFHEO and will operate within a predictable supervisory framework," said OFHEO acting director Stephen Blumenthal. "We anticipate we will be able to resume issuing when we become current in our financial reporting" in the first quarter of 2006, a Freddie spokesman said. Freddie issued $5.5 billion sub debt in 2001 and 2002 before suspending issuance. Fannie officials declined to comment on when they will resume issuance. The GSE issued $12.5 billion in subordinated debt before suspending its program in November 2004.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24