Fannie Mae chairman and chief executive Franklin Raines is predicting that commercial banks will soon loose their appetite for investing in mortgages as short-term interest rates rise."The one thing we know is that the carry trade that banks conduct in mortgages doesn't last forever," he told a UBS Warburg financial services conference. In response to critics such as Federal Reserve Board Chairman Alan Greenspan, Mr. Raines argued that Fannie's ability to purchase and portfolio mortgage loans and securities plays an important role in providing liquidity to the market when other investors no longer find it lucrative to invest in mortgages. "Without our mortgage portfolio, both investors and consumers would feel the pain," he said. Investors would not be able to find a ready buyer when they want to sell their mortgage holdings and mortgage rates would skyrocket -- hurting consumers, according to Fannie's CEO. "But we will be ready to stabilize the mortgage market," Mr. Raines said.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
March 28 -
The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28 -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28